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.
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