Having a credit card is a great financial boon for anyone.
For people in the United Arab Emirates, there are a number of ways to make the most out of a credit card, but some decisions will need to be made beforehand in order to do so.
Following a few simple tips can make it easy to make those decisions and have a credit card that you can take full advantage of.
There are a number of factors that need to be understood when you have a credit card.
Finances are a vital aspect of life for everyone, and the advantages and disadvantages of credit card ownership need to be fully understood.
The best thing about credit cards in the UAE is that if you make the right choice, the credit card can make you financially better off through bonuses, discounts and rewards.
You just need to make a strategic choice of credit card and then make use of it in a responsible manner.
Choosing the wrong credit card or using one irresponsibly, on the other hand, can cost you hundreds or even thousands of extra dirhams.
There are a number of points that you need to address to ensure that you take advantage of your credit card, avoid debt, and make your life more financially comfortable.
The best way to choose the right UAE credit card is to identify not just how much money you spend but also where it is spent.
If you spend more on essentials and groceries in a month than anything else, then you should pick a credit card that has great grocery shopping offers.
A lot of the larger stores in the UAE these days are connected to banks and even offer branded credit cards of their own.
Owning such store-branded credit cards can be extremely rewarding for regular customers.
However, you should also be aware of a store’s points system in addition to its reward programme.
It is important to know when collected points can be used, when they will expire, and what the minimum amount on your bill is that they can be paid with those points.
Rewards programmes on these types of credit cards include travel rewards and cashback as well as other offers.
It is, therefore, essential to take full advantage of the points system in order to save as much money as possible.
However, the quickest way to devalue your rewards is to spend more than you would have on your credit card in order to try to earn more credit card points.
Failing to pay off your credit card balance fully will also worsen your financial situation, as you will begin to accumulate interest on that unpaid debt.
The great majority of modern credit cards in the UAE come with very high-interest rates, with the average being around 19.99%.
An advantage of UAE credit cards is that most banks offer purchase protection on all purchased products.