Credit card is a financial instrument everyone loves to have. It lets you spend without having to worry about the amount of cash you have at hand. And the offers like free card, and credit-card issuers tempt average consumers to opt for one. But a majority of those using this tool forget one thing. It is like a double-edged sword. The ability to spend more goes hand in hand with the responsibility to pay your dues on time.
Are you someone exploring your options here? If yes, follow these tips to get the best credit card in UAE:
- Be aware of the minimum salary requirements
Before attempting a credit card to apply in the UAE, check if you are eligible for the same. It requires that you have a minimum salary to avail of the facility. The amount required may differ depending on the bank you choose.
- Be prepared to make an investment
Are you a first-time credit-card buyer? If yes, you may be required to make a deposit to find the best credit card in the UAE. This acts as a security for credit-card issuers. You will receive a credit card only in this manner until you are able to build a reliable credit history. When this happens, you start getting unsecured cards.
- Do comparison shopping
Everything about credit cards in UAE differs from bank to bank. Explore credit card aggregators online to have an idea of different credit card issuers and their offers, features, rate of interest and other charges. Choose the one that matches your style of spending.
- Consider the offers available
Go for a credit card that provides maximum benefits for you. See to it that they match with what you expect to get from it. You should be rewarded for every penny you spend on your credit card. In UAE, you are offered the following main types of credit card offers:
- Co-branded
- Standard
- Specialized
Your choice should depend on the features you expect from the credit card you plan to have. Your spending habit too should influence your decision here. If you spend more on lifestyle purchases, a lifestyle card may be the one for you.
- Check the annual fee
You can get a lifetime free credit card from most of the banks in the UAE. If a sales representative promotes a particular credit card, enquire about its annual fee.
There are credit cards that charge up to AED 2000. On the flip side, these cards come with a great many amazing offers.
A travel card, for instance, may offer credit points with every purchase you make. You may use these points to avail of discounts and freebies in airport lounges or hotels.
- Consider the rate of interest
This, too, is something that varies depending on several factors. Your loan repayment history, type of employment and the bank you choose are just a few among them to mention. Go for the credit card that offers the lowest rate of interest. This way, you will eliminate unwelcome surprises at the end of the month.
- Review the exchange rate
This should deserve utmost priority when trying to get the best credit card in UAE, particularly if you plan to use it abroad. Have a detailed spending plan at hand when travelling abroad with your UAE credit card.
- Be mindful of the credit limit allotted
Be fully aware of the credit limit your bank has offered. They take several measures to minimize the risk of default. You are allowed a credit limit based on its assessment of your reliability as a borrower. Stay within that limit and pay your dues every month.
- Refrain from having multiple credit cards
Banks, in general, offer multiple credit cards. You can go for only the main card, have one exclusively for online purchase or add a complimentary card to it. Go only for the card you would use the most. You may buy multiple credit cards. But activate only the one you would use at the moment. Activating a card is a breeze. And you can do it as and when you need.
- Minimize your credit utilization ratio
When using your credit card, monitor the credit limit available for you. Generally, your credit card use should not exceed 30% of the credit limit allowed.
If your spending rises and you are comfortable in maintaining a good credit utilization ratio, request an increase in your spending power.
Don't stop using your card in a bid to minimize your spending. Your credit card issuer wants to see how responsibly you spend. Furthermore, you don't want to lose the amazing benefits the financial tool has in store for you.
Know your spending; choose the best credit card in the UAE. This is a tool no responsible consumer can afford to ignore.
