6 Tips for First Time Credit Card Users

Posted by amrina alshaikh on October 25th, 2021

Credit cards are slowly becoming common among people. Any person can start their credit card journey as young as 18 years old. There are some things a person should know about and keep in mind before using the best cards in Dubai for the first time. One should understand these tips, especially the first-time credit card users.

The first step or requirement to use a credit card is to make the requisite deposit. The best cards in Dubai allow you to make purchases and other transactions by providing you credit as per your need. And after availing the credit from the best cards in Dubai, you have to repay the loan taken within a period of time as notified at the time you receive the credit card. It is recommended to repay within the stipulated time to avoid accrual of any interest.

Best cards in Dubai can be of majorly two types, secured and an unsecured credit card. It is highly recommended and suggested for first-time users of the best cards in Dubai to go for a secured credit card. Secured credit cards are suitable for one who wish to have a limit or have no credit history in their past. If you set a limit of the secured card to the deposited amount, you can inculcate the habit of better savings and borrowings, which will help you enhance your future credit score better with the best cards in Dubai.

Another important point to keep in mind while using the best cards in Dubai is maintaining a good credit score. As per many experts, the rule of thumb is to spend no more than 30% of the total credit limit of your best cards in Dubai. This rate can be determined as per the Credit Utilization Ratio. The credit Utilization Rate is a measure of how much credit you utilized compared to the total available credit for you in the best cards in Dubai. To understand credit utilization ratio better, let us take an example. Suppose your current balance is 00, and you have a total credit limit of 000, you have a credit utilization ratio of 25% (3000 /12000). Hence, always keep in mind to keep your credit utilization as low as possible to maintain a good credit score.

A user of the best cards in Dubai should make sure you pay your bills right on time before the due date. The best cards in Dubai available often do charge a high rate of interest if you do not pay right within the time. But this interest is charged when you pay within the grace period. The grace period for the best cards in Dubai is mostly around 21 days. You need not worry about the interest charged by the credit card companies until you pay bills within the grace period provided by your credit card company.

Make sure to constantly keep a check on your credit card fees and charges. Make sure you are not overcharged on the credit card usage. If you find any unauthorized charges in your credit card account, immediately contact the appropriate authorities and report it to them.

So, use your credit card with proper diligence. Credit cards are a good tool to be used when used properly. Not using a credit card won\'t be helpful in maintaining good credit; you should use the credit cards in a proper manner and in a limited manner, and you\'re good to go. So, now all you first-time credit users can begin their credit card journey keeping the important things in mind.