10 Little-Known Facts About Credit Cards in UAE

Credit cards have become an indispensable part of our lifestyle these days. Though most of the people are familiar with credit cards and have used them, for some the concept may be new. Regardless of the familiarity or unfamiliarity, it never hurts to know more about a

credit card. 

A credit card is a small rectangular plastic card that is issued by a bank or financial institution to an individual where the holder can purchase goods or services on credit. The card also allows the indi-vidual to borrow money from the issuing authority, as a means of short-term financing. Here are some pointers that will familiarize you with credit cards and their usability.

• The funds that can be borrowed and the amount a holder can spend towards buying products or services using the card is already pre-set according to the individual’s credit scores. The rate of interest charged, on outstanding amounts, by credit card higher than most of the consumer loans offered by banks.

• Recently credit cards in UAE are emerging as a popular means to pay for consumer goods and services. These days all reputed business units and retail stores accept payment through credit cards for goods bought or services availed.

• Credit cards are quite useful in times of emergencies or un-expected purchases. It helps save a lot of time and trouble since you don’t have to go hunting for an ATM to withdraw cash. Apart from this, credit cards also offer several perks such as cash-back, airline miles, identity protection, reward points, and travel insurance.

• Going beyond the convenience, credit card companies also send monthly statements of the card’s usage. This not only helps keep a tab of your expenses, but also saves loads of time spent on filing records and bookkeeping for tax.

• The biggest disadvantage of a credit card is the exorbitant in-terest rates that are charged on them. Another drawback is easy availability of cash that can tempt an individual to overspend beyond his means. Credit card scores can be affected in case of default or if you only repay the minimum monthly balance while overlooking the outstanding debts.

• It is essential to select the credit card wisely in order to make optimal use and eliminate chances of falling into debt. Also paying the outstanding balance every month can improve your credit ratings. It is also advisable to use the card only when needed and avoid irrational splurging.

• It is a bad idea to withdraw cash using your credit card because the interest charged is quite high, It can burn a hole in your finances, as it is con-sidered as short-term loans by the bank

• It is essential to read all the terms and conditions before opting for a credit card. Avoid choosing a credit card which has an exorbitant rate of interest and late fees, though other features may look at-tractive. It is wise to select a credit card that offers cash backs or reward points as they can be easily earned and redeemed.

One of the best advantages of using a credit card, is you can avoid carrying huge wads of money in your pocket. It also has its set of drawbacks as well. However, a credit card can prove to be quite a useful tool, when used wisely.

Thank you for Checking through our slide. For more information about Credit Cards in UAE then just browse through BankBazaar.ae : https://www.bankbazaar.ae/credit-card.html