In the 21st century, the way that people spend money has been forever changed by credit cards, and this is the same in the United Arab Emirates as it is everywhere else in the world.

UAE credit cards are an often divisive product because everyone seems to have an opinion on how they should be made use of and even whether or not they are a good idea at all.

There are some people who would rather use a credit card to manage their expenses in the UAE and believe it to be an efficient tool that enables them to make the most of their savings.

However, other people see credit cards as a way to get easy credit that can have a massive impact on their financial balance.

The truth is that a credit card is just a tool and the way that it affects cardholders is entirely dependent on the user’s own knowledge and skill sets.

Previous credit card usage is reflected in a cardholder’s credit score in the UAE.

Credit scores can be improved by consistently making payments on time, as missing payments can not only cause the score to decrease but also result in the imposition of penalties.

UAE credit cards impose very high interest rates on outstanding balances, and users who fail to make regular payments can end up falling into a financial debt trap.

It is very important for users to be smart when making decisions about how to use their credit card, and the good news is that there are some tips to help cardholders get the most from this financial tool.

Many financial advisors believe that credit cards should only be used in the event of a financial crisis and not just to make ends meet on a regular basis.

However, it is also a good idea to have some other way of ensuring financial security in the form of savings to avoid overreliance on credit cards.

Those who have faith in their own credit card management abilities can use their card as an efficient way to manage their budget.

Using credit cards to make all payments makes it a lot easier to analyse and perform an assessment on overall monthly expenditure and the potential for savings.

Users should never spend more with their credit than is available in their bank account in order to make sure that expenditure does not become uncontrollable.

Reward points are offered by the great majority of the credit cards that are available in the UAE with the likes of cashback, retail shopping points and frequent flyer miles.

Those who do use their credit cards to make all of their payments will get assistance with savings and expense management via these reward points.

There are particularly large rewards available from co-branded credit cards when making purchases from business partners.

Standard credit cards normally come with offers of 0.5% to 1.5% discounts on movie tickets, restaurants and utility bill payments, which by the end of each billing cycle can become quite substantial savings.

Smart usage of credit cards in the UAE can help with orderly expense management and to get the most from savings.

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