The great majority of people who are in possession of a credit card are usually only too well aware that it is very important to pay their credit card bills prior to the due date.

Cardholders in the United Arab Emirates also have the option of making a minimum payment in order to settle the bill temporarily. 

A minimum payment simply means the minimum amount of money that the credit card holder is allowed to make for that specific billing cycle.

Credit card holders in the UAE can usually pay between 3% and 5% as their minimum payment level, though different providers may have different minimums. 

The minimum payment option offers a distinct advantage in that cardholders who are experiencing an unexpected cash flow problem do not have to pay the whole bill that month. 

Credit card statements always come with a payment due date provided, and the customer will need to make the payment by this time in order to avoid late payment fees and interest. 

However, the statement also includes a minimum balance that the cardholder may pay so as to avoid any late fees. 

An option that cuts down on the financial burden in a particular month can, therefore, be very helpful for anyone who is suffering from a cash crisis. 

Failure to pay at least the minimum balance can negatively affect your credit report and tends to remain on the credit report for the next seven years. 

This can be a big problem in the event that you need a new credit card or are seeking a loan later on. 

It is not advisable to only pay the minimum balance unless you are confident that your current financial problem will only be a temporary one. 

Interest rates will be added after the due date, even if you have made the minimum payment.

Credit card interest rates in the UAE can be extremely high and will likely only worsen your financial problems further. 

It can be difficult to get out of credit card debt, making it unwise to use the minimum payment option in most instances. 

It is vital that a credit card holder is aware of how to properly use the credit card. 

Using more than 30% – at most – of the credit card limit is unwise.

When it comes to paying credit card bills, the customer should pay them on time and in full. 

The minimum payment option should only be opted for if you have a real need to do so.

Even then, the remainder of the amount should be cleared as soon as possible, preferably prior to the issuing of the next bill. 

Minimum payment should never be chosen as a regular option. 

Credit cards in the UAE offer minimum payment as just one of their benefits, and it should never be taken for granted by customers. 

The incorrect use of the minimum payment option can have severe consequences on your credit score and the rest of your finances. 

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