Store cards are one of the most popular forms of credit in South Africa, with millions of active accounts at retailers like Woolworths, Edgars, and Truworths. But are they a smart financial move? This guide covers everything you need to know.
How Store Cards Work
A store card is a credit account linked to a specific retailer. You can buy items on credit at that store and pay them off in monthly instalments. Unlike a bank credit card, store cards can usually only be used at the issuing retailer (or its group of stores).
Store Card Comparison
| Store | Interest Rate | Min Income | Where You Can Use It | Rewards |
|---|---|---|---|---|
| Woolworths | 20% to 22% | R3,000/month | Woolworths, Engen | WRewards points |
| Edgars (Edcon) | 21% to 24% | R2,500/month | Edgars, Jet, CNA | Thank U rewards |
| Truworths | 21% to 23% | R2,000/month | Truworths, Identity, Uzzi | Loyalty discounts |
| Mr Price | 22% to 24% | R2,000/month | Mr Price, Mr Price Home, Miladys | Insider rewards |
| Foschini (TFG) | 21% to 23% | R2,500/month | Foschini, Totalsports, Sportscene, Markham | TFG Rewards |
| Jet | 21% to 24% | R2,000/month | Jet stores | Thank U rewards |
| Pep | 22% to 25% | R1,500/month | Pep, Ackermans | None |
How to Apply for a Store Card
Most retailers let you apply in-store or online. You will need:
- South African ID or smart ID card
- Proof of income (payslip or bank statement)
- Proof of residence (utility bill or bank statement)
- A working cellphone number
The retailer will do a credit check. If you are blacklisted or under debt review, your application will likely be declined.
Are Store Cards Worth It?
The honest answer for most people is no. Here is why:
- High interest rates: Store cards charge 20% to 25% interest, compared to 15% to 20% for bank credit cards
- Limited use: You can only shop at one retailer group
- Easy to overspend: “Buy now, pay later” encourages spending you cannot afford
- Debt trap: Minimum payments barely cover interest, meaning you pay for years
When a Store Card Makes Sense
- You need school uniforms or work clothes and cannot pay cash upfront
- The store offers a genuine 0% interest promotion (Woolworths does this occasionally)
- You will pay the full balance every month and just want the rewards points
- You are building a credit history and cannot qualify for a bank credit card yet
Tips If You Already Have a Store Card
- Pay more than the minimum every month
- Try to pay the full balance to avoid interest
- Do not use the card for impulse buys
- If you are struggling with repayments, call the store to negotiate a payment arrangement before it goes to collections
- Consider a debt consolidation loan at a lower interest rate if you have multiple store cards