How Do I Use A Credit Card In The Right Way?
Posted by Chetan Rajendra on July 23rd, 2020
A credit card is a valuable financial tool if used wisely. Credit facilities come with charges as well as numerous responsibilities. If you have no control over your expenses, know that credit cards are not meant for you. If you wish to own a credit card in UAE, you have to be wise as well as thrifty. MoneyMall suggests ways on how you can use a credit card in the right way.
The best credit cards in UAE make life quite easy for the cardholders. But even then, they need to be used wisely if you want to reap maximum benefits. Here are a few tips and tricks to help you do the same:
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.
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.
If you do not pay your balance in full each month, you will be charged interest in the form of a finance charge. These monthly finance charges are calculated based on your credit card balance and your interest rate.
The higher your balance, the higher your finance charges will be. Carrying a high credit card balance can cost hundreds of dirhams in a year, especially if you are only making minimum payments.
One should always remember that credit cards are not debit cards. The cash withdrawal charges for credit cards are very steep. This has the potential to burn a hole in your pocket. Therefore, if you can, avoid cash withdrawals from your credit card in UAE completely.
If you are 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.
If and when you wish to change your credit card, you have a variety of options to choose from. It is understandable that each one of us wishes to have the best credit cards in UAE.
As tempting as it sounds, make sure you do not change your credit card like your clothes. Closing a credit card increases your credit utilization significantly. Thus, excessive change of credit cards may harm your credit score UAE. It can also cause difficulty in tracking your spending.
These are a few tips that you should follow to use a credit card in the right manner. Moreover, it is advised that you compare credit cards before you choose one for yourself. Make sure that you do not use your credit cards blindly. Keep yourself aware of the additional fees that may have to bear.
Pay off your balance on time every month to maintain a high credit score UAE. Lastly, take advantage of the benefits offered so as to ensure that your credit card is acting as a valuable financial tool.
About the AuthorChetan Rajendra
Joined: June 25th, 2020
Articles Posted: 2
A Book of Al Thatcher Card Magic by Gordon Boyd
After Hours Magic: A Book of Al Thatcher Card Magic by Gordon Boyd with contributions by Tom Craven, Stephen Bargatze, Gary Plants, Mike Powers, Dan Block, Steve Beam, Del Copley, Wynn Mertz, Nick Trost (Courtesy of H & R Publishing), Robert Bengel, Evert
Take Online Guitar Lessons
Learn to play at your own pace and in a range of styles and genres. Get started now to access over 200 online guitar lessons.
Vintage Clothes - Eras in Fashion History. Hints & Tips for online buying selling dresses via Internet - Antique to Retro
How To Draw A Car Fast & Easy
Learn how to draw a car using our step by step tutorials. Sports cars, classic cars, imaginary cars - we will show you how to draw them like the pros.
Fashion Design Course
Discover how to get paid $1,000 per week as a personal fashion designer!
Social Dancing Crash Course - Ballroom dancing for absolute beginners
Buy the official Social dancing crash course - Ballroom dancing for absolute beginners on Learntodance.com and learn to dance at weddings and parties.