The writer
Credit cards remain one of the most misunderstood financial tools in Ghana. For many people, the idea of using one immediately brings to mind high interest rates, hidden charges, or the possibility of falling into debt. As a result, uptake has been limited, and those who do own credit cards often use them with hesitation or avoid them entirely.
These concerns are not without cause. Like any financial product, credit cards require responsible use. However, much of the hesitation surrounding them comes from misunderstanding rather than misuse. Important features such as interest-free periods, flexible repayment options, and cashback rewards are often overlooked or poorly explained.
This article addresses five of the most common myths about credit cards in Ghana. It aims to provide clarity on how credit cards actually work and why, when used with care, they can serve as a practical and cost-effective alternative for managing short-term expenses.
Myth 1: Credit cards are only for the rich
One of the most persistent myths about credit cards in Ghana is that they are reserved for the wealthy or for high-income individuals with elite banking status. This perception has been reinforced by years of selective marketing and limited public education about who credit cards are actually designed to serve.
In reality, credit cards are intended for a broad range of customers. These include salaried workers, self-employed professionals, and business owners who need flexible access to short-term credit. Eligibility is typically based on steady income and the ability to repay, not on social standing.
Credit cards are not luxury products. They are practical tools that help individuals manage day-to-day spending, cover planned expenses, and benefit from interest-free repayment periods. When used with care, they can support better cash flow management without requiring the use of savings or more expensive credit options.
Myth 2: Credit cards always lead to high interest
Another common misconception is that using a credit card automatically results in interest charges, regardless of how or when the card is used. This belief often discourages individuals from applying for a credit card, even when it could serve their financial needs more efficiently than other borrowing options.
The truth is that interest on a credit card only applies when the full outstanding balance is not repaid within the interest-free period. For example, Absa Bank’s credit cards offer up to fifty-five days of interest-free spending. If the full balance is repaid within this time, no interest is charged on the purchase. This is significantly different from personal loans or salary advances, which begin to accrue interest immediately.
In many cases, customers are not aware of this feature, and the assumption of unavoidable interest discourages them from learning more. Clear communication around repayment timelines and conditions is essential to helping customers use credit cards more confidently and avoid unnecessary costs.
By Muhammad Shamsudeen Ibrahim, Product Manager: Cards, Absa Bank Ghana LTD.