Store cards with a credit facility have mainly been offered by clothing stores but Pick n Pay also in on the act with a new credit facility available via their Smart Shopper card.
Tip: You can compare credit cards here.
“We know our customers are under pressure and we’re always looking at ways to help them provide for themselves and their families," says Richard van Rensburg, deputy CEO Pick n Pay.
We developed a new PnP Store account to help customers manage their grocery spend in an environment where the cost of credit can be extremely high,he adds.
“The Store account is not a generic credit card and does not operate on the ATM network. It does offer credit for purchases in a Pick n Pay store,” stresses Van Rensburg.
The credit facility is available in all PnP stores.
“There is no charge for setting up this facility, and customers are not charged for swiping their cards at the till,” says van Rensburg.
The account fees
According to a flyer handed out by Pick n Pay, the credit facility boasts no joining fee, up to 55 days interest-free, as well as easy instalments and flexible payments.
Upon further enquiry, van Rensburg notes that there is a monthly account fee of R10 for active users and there are no other account fees associated with the credit facility.
Provided that your balance on the account is paid in full each month, you will enjoy up to 55 days interest free, as well as existing Smart Shopper benefits.
“The facility provides the customer with the flexibility of paying a minimum balance by paying the account off over 12, 24, or 36 months," says van Rensburg.
If a customer chooses this option, then an interest rate of 21% will be charged on the account, he adds.
If you choose to pay the minimum balance, van Rensburg notes that there are no additional monthly or contract initiation fees.
“Customers also have the option of paying off the full balance each month (to get the benefit of no interest) on the whole account except for selected transactions which can be placed on budget (at an interest rate of 21%) – for example a transaction to purchase a fridge or mobile phone,” he says.
If you're struggling to pay your debt at the end of the month, click here for assistance.