purchase whatever we like and want without worrying about the cost – for the moment at least. This is a great advantage to have, but only if used wisely. Overusing more than what we can pay back can also cause high debts and a bad credit score, affecting career, lifestyles, and undue money problems that weren't on the agenda. Using a credit card in UAE is as convenient as it is tricky, so it is best to use it to reap the benefits of its optimum use.
7 Tips & Tricks to Optimise Use of Credit Cards
To use a credit card in UAE, you should follow the below-mentioned financial habits, so you can not only have the convenience of buying things but also make huge savings and discounts.
1. Pay Bills on Time
Swiping a credit card is the simplest and quickest thing to do. Whether you are dining, shopping, paying phone bills, or just about purchasing anything under the sun that needs money in return, a credit card is handy. However, ensure that you always make your bill payments within the stipulated time, as delayed payments can incur penalties and extra interest charges, adding to your final payment.
2. Cash Back and Value Back
Many cards offer a cashback and value-back programme in which you can get some amount of money credited back to your account on every transaction. If you have paid your bills on time and have an impressive credit score, this facility can be awarded to you by Amex, and you will never pay full price for anything ever again!
3. Membership Rewards Programme
This is one of the lucrative ways to save money and/or use it to avail other products and services free of cost. Every time you make a transaction on your card, points are awarded to your account, which accumulate. You can use these points to purchase groceries, shop for retail, upgrade your flights, get room upgrades, enjoy staycations, and much more. Optimise your rewards points to the fullest by making timely payments and not letting the points expire.
4. Report Discrepancies
While this might seem an obvious practice, many people don't realize fraudulent transactions made on their cards and often end up in huge debts. When you use a credit card in UAE, you are almost always secure, especially with Amex, but this can also be misused sometimes. Monitor your transactions and report loss, theft, and/or transactions not made by you at your earliest.
5. Scrutinize Charges
Most cards tend to have joining and renewal fees. Pay attention to these charges and only take the cards that have reasonable fees in this regard. Often, on a certain agreed-upon spent, many card companies waive these fees off. Do your research thoroughly.
6. Keep your Credit Limits Low
The higher the credit limit, the higher you tend to spend, and if not paid back on time, can result in added interest costs. Maintain a lesser than 50% credit limit as a balance on your card. This will help increase your credit score.
7. Avoid Cash Withdrawals
Credit cards do offer the facility of withdrawing emergency cash from ATM machines, but this is provided a transaction fee is levied. Unless it is an emergency, avoid this practice altogether and use your debit cards for cash withdrawals. This will reduce overall costs.
