When you make a transaction, there are a number of factors that need to be taken into consideration when deciding whether to do so with a credit card or a debit card in the United Arab Emirates.

There are a number of perks that credit cards offer that are not provided by debit cards, including benefits that are available for redemption across shopping or travelling.

Generally, credit cards are a much better form of payment than debit cards, provided that the cardholder is capable of spending in a responsible manner.

One of the most popular ways that credit cards have rewarded users for spending money in recent times has been by offering rewards programmes.

These programmes provide a fixed reward percentage that can be availed depending on the provider of the card.

Reward points can add up very quickly and can be redeemed either with exciting hotel stay deals, as cashback, cheaper air flights, and other methods depending on the individual offers from different providers.

Using a credit card to make a purchase in the UAE rather than a debit card is also a good idea as many cards offer purchase protection – something of particular importance when buying hi-tech or otherwise expensive items.

Different cards with different providers come with a variety of policies that provide protection against purchases being stolen, lost or damaged and are essentially a free form of insurance.

Credit cards also often provide an extended warranty that normally duplicate the original manufacturer’s warranty period for up to 12 months.

When buying expensive items, including electrical appliances, it is therefore a good idea to use your credit card to pay for them, and the service comes with no extra costs.

Many of the best UAE credit cards even come with price protection, which is a service not included on most debit cards.

This allows any difference in price for a purchase you have made against a lower price elsewhere to be recouped.

Debit cards cannot compete with credit cards when it comes to benefits and perks as well as money-saving aspects.

Credit cards not only provide insurance-like benefits, including protection against lost luggage and cancelled flights, but also extra perks to help you save money, including no airport baggage fees and complimentary airport lounge access.

It is important to ensure that you have a good credit score in the UAE, and being in possession of a credit card is not enough to do that on its own, while debit cards do absolutely nothing to contribute to your credit score.

Using a credit card and ensuring that repayments are made in a timely manner shows lenders that you handle your debts in a responsible fashion and helps to increase your credit score.

A good credit score makes you eligible for the best UAE credit cards and gives you access to better benefits and improved rates if you are intending to take out some form of insurance policy.

Credit cards and debit cards may look the same, but they offer very different perks, and the benefits offered by the former far outweigh those of the latter.

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