People living in UAE consider the use of credit card an essential part of their lives. Having a credit card in the UAE offers people the freedom to move around without carrying loads of cash with them. Today nearly all businesses and restaurants accept credit cards, hence reducing the need to take some money all the time you move out of the house. Despite the many advantages that credit cards offer, it is also important to realize that credit cards are also one of the main reasons that people fall into the debt trap.
When it comes to deciding which would be the best credit card in UAE, there are several points to be considered. You should choose a credit card that will suit your financial situation and requirements. Look for a credit card that comes with low-interest rates and no or low annual fees. Do not forget to read the fine lines while filling up the form, as it carries some vital information. Reading the fine print brings forward many hidden costs that a credit card carries.
The increasing demands of consumers have inspired banks and credit card providers to come up with numerous offers and different types of credit cards.
1. Standard credit cards:
These are considered to be the best credit card in UAE, as these credit cards come with a credit limit, and at the end of each month, you get a billing statement that gives details of your expenditure, minimum amount due, and the payment date.
These are similar to the standard credit cards, except that you receive something when you use the credit card. Some companies offer cashback rewards where you can get some percentage of the money back that is spent while shopping. When you shop, you earn certain points that can be used for hotel stays, at restaurants, retail outlets, and also at gas stations or for cashback.
3. Prepaid cards
If you are not sure that you can handle the fees, interest, and your shopping habits with a credit card, then opt for a prepaid card. These cards are similar to credit cards, but you are required to fill in your account before spending, and this amount acts as your credit limit.
Using a credit card smartly can help you build a good relationship with your credit card provider, increase your credit card limit, and also improve your credit rating. Here are some tips for using a credit card wisely.
1. Credit limit:
Every credit card comes with a credit limit that defines your spending limit. Be aware of the credit limit and avoid overspending. Spending above the credit limit can bring along substantial fees.
2. Bill payments
Paying just the minimum balance every month is just not enough, as you will be carrying over the remaining amount, and this will bring in additional charges and added up interest rates.
3. Avoid unnecessary spending
When you have a credit card, it is likely to get bitten by the shopping bug. You should keep credit cards for emergency use and should not go overboard during shopping just because you do not have to pay cash instantly.
Having a credit card is a bonus for you, but only if you use it in a proper way.