To encourage you to maintain a good credit record, First National Bank (FNB) has introduced personalised interest rates on its credit cards that reward people who honour their debts.
This differs from the current practice whereby interest rates are determined by the type of credit card you own (for example, silver, gold or platinum), which is determined largely by your income.
FNB levies between 18.5 and 27 percent interest on credit card debt, depending on your card.
Under the new system, if you apply for an FNB credit card and the bank sees you have a good credit record, you could enjoy an interest rate of as low as 17 percent on your credit card debt, regardless of the type of card you have or your income. So if you have a silver card and a good credit record, you could pay a lower interest rate than someone with a platinum card and a poor record.
If you are an FNB client and already have a credit card, you will have to apply to the bank for a new card. You will receive a quotation for a personalised interest rate, which will depend on your income, expenses and your repayment history.
The new personalised interest rates system will be applied to all new credit card customers .