It is important to know how to use a credit card in UAE. The Emirates is a fast-growing destination of choice with a growing reputation as a destination of choice for leisure and business. Whatever be the reason, having a credit card and using it wisely is invaluable. As the adage goes for the knife, so is it applicable to credit cards; good servants but bad masters. In the UAE, credit cards are a popular choice. However, each card has its strengths and weaknesses. Listed below are a few tips you might find helpful.
Use of credit cards in UAE
Know these terms:
Best Practices explained: 1. Keep in mind to always pay your entire bill on time to avoid interest accrual, as well as late fees. This also improves your credit score. Note: Pay the whole amount instead of the minimum payment, which is, of course, more tempting but has an interest component that will hit you later. 2. Keep it within your budget: Check your statement periodically. Understand that the convenience of paying later has a caveat attached. If you take more than a few weeks to pay your debt, you will pay in the form of a finance charge. Make it possible for the scheduled payments to be taken care of automatically, if possible. 3. A basic understanding of interest calculation method: Once again, understand that interest is calculated on the average daily balance, not just the remaining balance, all the more reason to make full payment, not just the minimum. 4. Keep track of your spending: Analyse your spending on groceries, travel, etc. and analyze the current offers on multiple cards. Use the one which gives you maximum benefits. Avoid pitfalls and master the use of credit cards. A credit card, when used wisely, can enhance your shopping experience, not take you down a debt spiral. You can end up having a good spending experience and worry-free usage of your credit card in the UAE if you keep the principles above in mind.
0 Comments
While many people still stand in a long queue to pay their bills, online payment is fast becoming the preferred mode of payment throughout India and the world. However, if you are from an age when online payments did not exist, you may not be open to the idea.
Online Bill payment vs. Physical payments There is still some charm and certain benefits to making physical payments for your bills. So, which is better – online bill payment or physical payments? Let’s take an unbiased view of each method to evaluate which one is better: 1. Convenience If you need to make a physical bill payment, but you cannot go due to ill health or bad weather, your bill may become overdue if it is the last date. However, you can pay your bills online from the comfort of your home, thereby avoiding penalties. 2. Small Change Issues Finding small change is a common issue faced by many bill payment centers. For example, if your personal loan falls due and an amount is an odd number, then you may find it challenging to find a small change for paying your loan installment. With online payment, you don't have to be foraging around for a small change. 3. Added Advantages of Using a Credit Card Paying your bills offline brings you no special benefit. But if you pay your bills online using a credit card, you get many benefits. For example, most credit card companies offer points to encourage you to use your credit card more frequently. You can redeem these points for fuel, discounted shopping, and even airline tickets. 4. Saves Time If you pay your bills offline, you can spend up to one hour going to the bill payment center to pay your bill. Moreover, if you have bills to pay to different service providers, you could spend half a day visiting various bill collection centers. Let’s assume that you have a credit card with an instant credit line. You can pay multiple bills to different agencies from your credit card account in just a few minutes. Imagine the time that you save by paying your bills online! 5. Environmentally Friendly Most agencies discontinue sending you a paper bill when you opt to pay your bills online. However, if you pay offline bills, you generate paper bills and get a paper receipt from the bill collection center when you pay your bills. So, by paying offline bills, you leave a paper trail that is not environmentally friendly at all. Paying online bills is the best way of being responsible for the environment. 6. Saves Money Have you ever wondered about the extra cost of paying offline bills other than the cost of the bill? For example, if you send a cheque by post, you spend money on the envelopes, postage, and your bank even charges you for the cheques you use. It is even worse if you commute to the bill payment center because you have fuel charges to consider. However, if you pay your bills online, you don't have any of these added expenses. 7. Keep track of Your Payments. When you pay your bills offline, you have to file away your paper statements, receipts, and bill copies. Keeping track of these transactions can be a hassle. Let us consider that you suddenly need to produce your latest bills for proof of address for applying for a personal loan. You will have to search through all your paper files. On the other hand, if you pay your bills online, there is an electronic record of every single bill transaction you have done. Therefore, you can easily pull up the latest documents required and forward them to the relevant agency. Conclusion After discussing online bill payments vs. physical payments, the choice is obvious. Being an avid reader or a music lover, you may argue that you can always kill time reading a good book or listening to music while standing in the queue to pay your bill. But is it worth it? You may end up with aching legs and a sore back and feeling exhausted at the end of it all. Why should you want to stand in a queue or spend hours writing cheques and putting them in envelopes and posting them when you can complete the entire process in a few minutes? The answer is clear. Online bill payment is always a better option than physical bill payments. Agreed, it is a bit of a hassle setting up the bill payments online, but once you set it up, especially if you have a credit card with an instant credit line, paying your bills will be like a walk in the park! |
AuthorWrite something about yourself. No need to be fancy, just an overview. Archives
August 2022
Categories |