Opting for the best credit card that suits your lifestyle, pay cheque, and aspirations can be a very difficult task. As per the estimates, the UAE has more than 200 variations of credit cards, tailored to different lifestyles and income. Therefore, it is quite important to understand that no single credit card is superior to all others or suits everyone needs. Each and every credit card has got its spending limit every month.
This plastic card can either be your great companion, helping you to deal with your finance or it may become a debt trap, completely depending that how you use it. But by understanding your options, you can definitely find out the best credit card in UAE that fits your credit situation and spending habits perfectly.
So, follow these below-mentioned steps to find out the perfect credit card for you:
Know Your Expenses
Well, this is the primary thing that you need to do before applying for a credit card. If you have no idea about your spending habits then it will be very difficult for you to opt for the best credit card. Therefore, you need to have a reasonable idea of your expenditure. Do you spent a lot on travel or dining, or are most of your expenses just grocery items and utility bill payments? Or maybe your kid’s school fee is your biggest expense.
This step helps you to analyze what kind of credit card you need as financial institutions offer different types of credit cards to meet the basic need of the users. Some common credit card services, as per the spending of the people, include air miles credit cards, cash back credit cards, educational finance credit cards, and many others.
Change Interest Rates On Credit Cards
Every credit card charges different interest rates which vary from one credit card to another. Seeing single digit interest rates on your outstanding amount is very much satisfying so you need to pay attention while seeing the interest rates on credit cards. It is highly advisable that before opting for the credit card, you compare credit cards online by interest rates and any other additional charges.
Well, you might already know that Islamic Banks follows Sharia-compliant principles so they don’t charge interest on the outstanding amount. So, you might also consider Islamic credit cards if you don’t want to pay interest charges on your outstanding amount.
Credit Card’s Credit Limit
It is highly recommended to choose a credit card according to your monthly income. Don’t opt for a credit card with high spending limits. Else you might end up with major debt issues.
Annual Fees
Credit card providers charge an annual fee from the card members to ensure proper maintenance. Well, there are also some credit card issuers who don’t charge an annual fee and offer a free for life credit cards.
When compared to free for life cards, these paid credit cards offer a wide range of benefits and privileges that might be useful to cardholders. So, choose the credit card as per your convenience.
Benefits, Privileges, and Rewards
Cash back, air miles, rewards, bonus points – there are so many benefits you can avail of by using your credit card. Well, the first thing is to know what kind of benefits & privileges you would be happy with. This will eventually help you to make the most of your credit card.
But please note that some of these benefits & privileges come with specific terms & conditions, such as the requirement of minimum spend or are restricted to participant vendors. So, check this thing as well before you choose the card for you. In addition to this, most of the banks offer a range of introductory offers when you sign up. It is recommended that you compare credit cards either by calling a few banks or by visiting the official website to get the best credit card in UAE and of course for getting the best deal.
Easy Payment Plan Offers
Most of the renowned banks and financial institutions offer an easy payment plan with interest-free schemes for retail purchases ranging from three months onwards. Though this advanced feature, you can easily convert your retail purchases into easy to pay monthly installments.
So, before opting for the credit card, make sure you compare different credit cards in order to check which credit cards have the best installment plans for retail purchases.
Foreign Transaction Fees
If you are planning to use your credit card overseas as well then don’t forget to enquire with your bank or whichever bank you are approaching for the foreign transactions rates. Some of the banks may charge a certain percent of your expense as processing charges each time you use your card for overseas transactions.
Read Terms & Conditions
It is true that most of the people agree to the terms & conditions without giving a second thought. But that is where most of the important things are mentioned and we should take enough time to go through each term and condition carefully.
Check if there are hidden charges on not using the credit card for any period of time or are there any additional charges if we use the card to avail any offer? After checking it out carefully, you can confidently get your card in your hands.
Final Verdict
So, these are some of the important things that should be considered to opt for the best credit card in UAE. It is advisable to compare credit cards either online or offline to choose the best one. And if in case, you are facing any kind of issue in understanding the modules of a credit card then you can also consult financial experts but don’t take a hurried decision else you may land in serious trouble.