use

credit
wisely
improve your life and
realise your dreams
contents
Signs you may have credit issues
Spot the 5 signs of bad credit and
02
take control of your money again.

What to ask before buying a car

Asking the right questions can get
03
you the best deal.

Invest in your future

Ways to pay, and save for education.
05

High-impact home improvements

Add value to your home with these
07
high-impact ideas.

Budget planner and guide

Plan your budget and work out how
09
much credit you can afford.
5 signs of bad credit
smart ways to recover
Credit is a great way of helping you
get ahead. For example, consider how
a loan used to buy a car can improve
take control
Follow these steps
your life – it gets you to work, gives
you freedom, saves you time. But if Get a free copy of your credit report
from www.mytransunion.co.za.
you don’t manage credit correctly and
keep it under control, it can have a Know what you spend your money
negative effect on your life. on and always ask yourself if it is a
need or a want.

Use the budget planner and get a

You use too much of
clear picture of your credit situation.
your income to pay
off debt
Speak to your credit providers
if you’re having difficulty making
payments.
You can’t keep track
Prioritise paying off the debt with
of how much you
the highest interest.
owe
Only take on debt that you can
comfortably repay on time.

You borrow money

to pay off debt
change your life
read the full story
bit.ly/creditissues
You ignore letters or
requests from your
creditors budgeting
tool
Get started to find out how
You hide your debt you should be splitting your
from family monthly budget.
bit.ly/capitecbudget

Money Management | 2
 what to ask before
buying a car
Buying a car never loses its thrill. It’s even more exciting if it’s your first.
Consider some important issues before you hand over your money.
how will you pay?
First work out what you can afford. Look at
your budget to see how much you spend on car
repayments. Monthly repayments aren’t the only
costs to worry about.
Other costs:
• Car insurance
• Fuel
• Licence fees
• Maintenance costs
If you’re not paying cash you’ll need to get credit,
which is offered by car dealerships and banks.
Vehicle finance means that the car is only yours
after your last repayment and it’s more difficult to
get car finance on a vehicle older than 10 years.
If you choose a personal loan to pay for the car, it
will be yours immediately.
Capitec Bank offers credit up to R200 000 over
84 months. The money is available immediately
and you get free retrenchment and death cover.
3 | Capitec Bank
new vs used
Your budget will tell you whether buying new or
used makes the most financial sense.
New cars are appealing because they’ve
never been driven by anyone else, and you’re
guaranteed a clean history. Buying used often
means you can buy a better model or an upgrade
of the new vehicle you were going to purchase,
because the first owner took the biggest
depreciation.
When buying secondhand, consumers can
choose between buying from a dealer or privately.
Both have their advantages. Buying from a
reputable dealer offers the customer guarantees
if something goes wrong, while buying privately
can cut costs.
Be careful when buying online: always view the
car during the day, try to take someone with you
when you do and make sure the seller gives you
the vehicle’s documentation before you hand over
the money.
used-car checklist
Here are some of the key questions
you need to ask:

1. If buying from a dealer, is it reputable

and does it belong to the Motor
Industries Federation (MIF)?
2. Are there any warrantees and
guarantees still available on the car and
will this transfer on change of ownership?
3. Is it being sold for a fair price?
(Use the Internet to do some research)
4. Is there an authentic service history
available that can be verified?
5. Has the car been in any accidents?
6. Does the car have a low mileage?
7. Is the mileage on the odometer correct
and can it be verified?
8. Is there a mechanical report on the
car? (If not, consider doing one before
the transaction is concluded.)
9. Are there signs of oil leaks and rust?
10. Are there dashboard cracks?
(This could indicate that the car has been
standing in the sun, and might mean that
the other rubbers – such as window
rubbers – are also damaged.)

credit
ask the right calculator
questions Choose the amount and
read the full story term to work out how much
bit.ly/creditissues credit you can afford.
bit.ly/credittool

Money Management | 4
 invest in
your future
start today
A good education is a great investment but it
doesn’t come cheap. Here are 5 ways for you
to pay for an education.

Student loan
Some banks offer loans to pay for tertiary studies which usually cover fees,
accommodation, books and related equipment.

Personal loan
Ideal for part-time students and those studying short courses. You choose how
to use the money (e.g. fees, living costs). Capitec Bank offers credit plans up to
R200 000.

Scholarship/Bursary
Scholarships cover up to 100% of your fees, but be ready to show why
you’re the best candidate! Some companies and institutions offer bursaries.
Candidates often have to work for the bursary provider after studying.

Part-time jobs
Check campus noticeboards and websites. Universities also offer work
opportunities such as being a tutor or admin assistant.

Company training
Some companies have training budgets for courses or skills that add value.
Speak to your HR department to see if you qualify.

5 | Capitec Bank
student saving tips
Stretch your rand with these 8 ideas
• Start early and put money into one of
our 4 personalised Capitec Bank savings
accounts, earning from 4.4% – 9%
interest per year from the first rand
• Cut your bank costs with zero-fee card
purchases by paying with your Global One
card instead of with cash. Cash withdrawal
fees are also much less at selected tills
than at ATMs
• Set up a budget and plan how you’ll
use your money. Student life can be
expensive, so stick to your plan
• Before term starts, check out school
or campus noticeboards and
classified websites for used textbooks
and other needed items
• Buying stationery in bulk and from
factory shops is often cheaper than
from chain stores. Search for stationery
factory shops online
• Form a support group with other
parents. For example, set up a chat
group where you can share news of
sales and discounts
• Flash your student card for any
discount you can get
• Make use of free WiFi on campus
and at cafés to catch up with friends
and family, and for doing research
paying for
education
read the full story
bit.ly/edsave
savings
calculator
Identify what you’re saving for and
how to reach your goals. Our savings
calculator will get you started.
bit.ly/capitecsave
Money Management | 6
 high-impact home
improvements
Buying a home is the biggest investment most people will
make. It needs lots of love, attention and money to make sure
that it looks good, remains in a great condition and increases its
value over time. Here are some high-impact makeover ideas for
you to try.

If you’ve got:

R2 000
•
•
Spend some money on a garden clean up and trim
Invest in new scatter cushions for various rooms
improving your
• Paint a feature wall behind a television or bed home is easy
• Keep things tidy with baskets or wooden storage Capitec Bank offers credit
containers up to R200 000 over 84
months. The money is available
• Replace worn or dirty carpets, especially in high immediately and you get free
R10 000 visibility areas retrenchment and debt cover.
• Repaint or reupholster secondhand furniture
• Bring the light into your home with a skylight
• Spend money on accessories like pot plants and
vases

• Repaint kitchen cupboard doors, replace counter

R20 000
tops and door handles, and put up painted shelves
• Buy original art at end-of-year student exhibitions,
markets or online art shops
• Replace bathroom basins and taps
• Invest in a closed combustion fireplace

• New skirtings and cornices make a huge impact

R50 000
• Replace old downlights and switches with new
ones
• Upgrade your security with electric beams, burglar
bars, electric fencing and maybe even cameras

• Paint the house, inside and out, including fascia

R100 000
boards, gutters and downpipes
• Retile bathrooms, add a modern glass shower, and
put in natural stone tops
• A wooden deck or terrace is always a bonus

7 | Capitec Bank
ideas for every
budget
read the full story
bit.ly/homefixes

credit
calculator
Choose the amount and
term to work out how much
credit you can afford.
bit.ly/credittool

Money Management | 8
 planning your budget
take control of your money
Monthly income
Budget Actual
Your income
Partner’s income Total income (A) R
Part-time work
LESS Total expenses (B) R
Commission
Surplus
R
(disposable income)
Total income (A)
This means you should think about
Monthly expenses saving or investing this extra money.
Fixed expenses Total savings/
Budget Actual
LESS investments (C) R
Home loan/Rent
Medical aid
Water
Electricity
Telephone/Cellphone Total expenses (B) R
Bank costs LESS Total income (A) R
Internet/TV Shortfall R
Education policy
This means you should cut your
Insurance policy
expenses immediately and/or find
Funeral policy extra work to increase your income.
Credit/Store cards
Furniture
Education/School fees
Sport/Gym fees remember
• Yearly expenses: Make a list and spread the cost
General expenses Budget Actual
over 12 months. These expenses may include
Groceries your TV licence, car licence and postbox hire
Family support •
Clothing • Replacement expenses and repair work: Plan
Medicine for these expenses by setting money aside each
Hair/Beauty month for things that may need to be replaced or
Kids’ pocket money repaired some day, like your car or fridge
Entertainment •
Restaurants/Takeaways • Investments: Aim to save 10% of your
Cleaning service salary each month. Consider interest-earning
investments – they grow each month. Choosing
Transport Budget Actual an investment that you can name, like one of our
savings plans, can help you stay disciplined
Vehicle instalments
Fuel
Vehicle repairs
Taxi/Bus/Train fare

Total expenses (B)

Monthly savings/investments
Budget Actual

Total savings/investments (C)

9 | Capitec Bank
how to
budget
1. Think ahead
notes
2. Understand your income
3. Understand your expenses
4. Cut unnecessary expenses
5. Draw up your budget

monthly income R16 000

net income (on salary slip) 10 000
Your income (after deductions) 10 000

other income 6 000

Partner’s income 3 000
Part-time work 1 000
Commission 2 000

monthly expenses R6 900

fixed expenses 3 200
Home loan/Rent 2 000
Medical aid 500
Debt repayment (bank) 300
Debt repayment (retailer) 200
Vehicle repayment 200

other expenses 3 700

Groceries 1 200
Transport 800
Family support 500
Water 250
Electricity 250
Bank costs 300
Telephone/Cellphone 200
Clothing 200

surplus R9 100
disposable income
Use your disposable income to invest in
savings first before spending it on wants,
which are luxuries or unnecessary expenses

Money Management | 10
money
management
credit tips
Determine your affordability: can you easily afford the monthly repayments of your
tip 1 loan? Determine what money you have available after all your expenses. Plan your budget
and consider your commitment for the full term of a new loan. Always have extra money for
unexpected expenses.

When choosing a credit provider: compare interest rates, admin fees and credit life
tip 2 insurance. Understand the full offer and ensure that there are no hidden costs – credit life
insurance is the most common hidden cost

Match the loan term to your purchase: if you are paying for one years’ worth of
tip 3 education ensure you pay off the loan within a 1 year period.

Become money smart

SMS your name & email address to 30603 and receive more
money management tips.

Visit our Money management page to:

2858 Credit A5 Booklet

Crunch the numbers

Utilise our on-line calculators to help you manage your money

Tips & News

capitecbank.co.za/money-management