A credit card can be quite a valuable tool if it is used effectively but do you know easy and effective ways to manage your credit cards for your personal gain? Credit cards, if used, ineffectively, can lead to a world of harmful consequences.
A credit card can be quite a valuable tool if it is used effectively but do you know easy and effective ways to manage your credit cards for your personal gain? Credit cards, if used, ineffectively, can lead to a world of harmful consequences. You may have the best credit card in UAE, but to use it well, it is essential that you follow a few simple steps. MoneyMall, brings you 10 easy tips and tricks to make credit cards in UAE work for your personal gain.
- Pay your credit card bill on time
Paying all of your bills on time is a great way to keep your interest rates low and improve your credit score. To avoid missing your due date, set a reminder on your phone a few days beforehand or mark the date on your calendar. You can also adjust your online account settings so your bill is paid automatically on a certain day of the month through a direct bank draft.
- Pay your bill in full every month
It’s often mistakenly believed that making the minimum payment on your card dues is sufficient. To avoid penalties, you must pay your bill on time. But to avoid heavy interest rates, you must also pay the bill in full. Don’t pay attention to the minimum dues, and make it a point to clear your full card balance every month.
- Take advantage of the rewards
Credit cards give you reward points for specific kinds of spending. Your accumulated points, thereby, can be redeemed for rewards in cash or kind. Use your card in a manner that helps you get the best out of the rewards and benefits you are eligible for.
- Keep your credit card details secured
Scammers keep finding new ways to defraud credit card users. As a basic measure, always keep security details such as security pin, CVV number, OTP, and expiry date private and secure. Be careful not to swipe your card in any place except POS machines and ATMs. An unsecured swipe could lead to your card being cloned and misused.
- Avoid using your card at an ATM
Credit cards also let you withdraw cash from ATMs. Avoid using this facility because even though they are allowed, ATM withdrawals attract heavy charges. You wouldn’t want to pay that, would you?
- Choose cards with extra perks
Even if you’re not interested in credit card rewards per se, you can still leverage the benefits of a credit card. For example, some of the best credit cards out there offer perks such as free travel insurance, primary and secondary rental-car coverage, price protection, and extended warranties. Some premium cards come with guaranteed gift vouchers and benefits, such as free access to airport lounges. Some gifts may also be provided as joining benefits, others as periodic benefits.
- Only use your card for the big purchases
Sometimes, the little $10 and $20 purchases can, over time, build up to a huge credit card debt when left unchecked. Consider using your card just for big purchases instead. The best way to do this is to save up for your purchase in cash first. Then, after you make the big purchase with your credit card (and reap the rewards points), you’ll have the funds to pay it off right away.
- Pay attention to the fee structure
Credit cards often have joining and renewal fees. However, there are cards that have no fee. When looking for a card, pay attention to the fee structure. The fee should be reasonable and should be outweighed by the card’s benefits. Moreover, many cards allow a fee reversal if you spend a certain amount annually. Look out for this reversal benefit to save on the annual fees.
- Avail a loan if required
Credit cards also allow unsecured personal loans based on your credit history. If you require financial help, don’t look for loans elsewhere. Use your credit card to avail of one.
- Know your limits
If you’re worried that you might overspend, ask your credit card company to lower your credit limit to something you know you can manage on a monthly basis. They should be more than happy to oblige since they ultimately want you to pay the money back, and they can often make the credit limit change effective immediately.
Credit cards in UAE are a necessity in many ways. They score over debit cards because of the reward points as well as the ease of conducting transactions even during a financial crunch. Therefore, it is always advisable to understand your card’s fee structure, rewards, interest rates, and penalties. Also, make sure that you do your research well and compare various cards to determine the best one for yourself and your lifestyle.