Everything You Need To Know About Credit Cards

credit cards

From tedious bank processes to a quicker and more convenient system, credit cards have transformed how anyone can borrow money. Unfortunately, not so many Nigerians currently take advantage of this financial service. To educate you on how you can obtain and start using a credit card, let us take you through everything you need to know about credit cards as a beginner.



As a credit cardholder, you have access to cash advances up to a set limit which you can spend only through your card. This limit is known as your credit card balance, and for every payment that you make with your card, the sum is deducted from your credit card balance. However, your credit card balance is replenished monthly after you have paid what you owe. This is described as a revolving line of credit and this means you do not need to apply for a new loan, you simply pay your dues and your balance will be replenished over and over.


To be eligible for a credit card, your income and loan repayment history will be assessed. This will help your credit card issuer determine your ability to repay the credit sum which you will be given. Eligibility criteria usually differ from one bank to another. To be eligible for an O3 Credit Card, you must be:

  • Between 21 – 55 years of age

  • Resident in Nigeria

  • A salary earner with at least a gross monthly salary of ₦200, 000 or an Entrepreneur with a 6 month average turnover of ₦200, 000.


Credit card charges refer to the fee you pay for making certain transactions with your card, for example using a POS, withdrawing at an ATM. Your credit card debt also attracts a stated interest rate as well as special fees for late debt repayment. These fees differ across credit card issuers. Here are the fees and charges for your O3 credit card:

  1. Monthly Service Fee: N500 to N2000 (depending on card type)

  2. ATM Cash Withdrawal fee: N200 (per transaction)

  3. Late Payment fee: N2000

  4. POS Interest rate: 4%

  5. Cash Withdrawal Interest rate: 5%


Credit cards can make your life easier. Here are a few:

  1. Access to quick loans

  2. Attractive payment discounts for credit card purchases

  3. Special reward programs to benefit from

  4. A convenient way to control the spendings of staff or a dependent

  5. A safer option for online payments

  6. Perfect for business operational expenses

  7. Flexible payment for goods and services

  8. Not required to provide collateral or make a deposit

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