Credit Card 101

Posted on March 13, 2018

Credit cards have practically taken over the financial world. From paying online to paying for goods and services in store, you can take advantage of a huge range of benefits by choosing to own a credit card. Provided you avoid the common pitfalls, e.g. falling into debit, you can easily run your account with ease, and allow it to make your life a little simpler too. There are countless credit cards in the UAE too, so you can find a card which suits your needs best.

Many people are a little fearful of having a credit card, probably because of the ever present temptation to go spending. Obviously, whatever you spend will need to be paid back, this is not free money! Having said that, a little discipline and putting into place other features, such as SMS updates on spending, means that you can stay on track. The main benefits of a credit card are obvious, e.g. if you have a big purchase you need to make and it’s mid-month, a few weeks away from payday, you can make the payment and simply put it back onto your card and spread the cost over a few weeks or months.

Using a credit card for spending also gives you more protection than cash or a debit card, and big named companies, such as Visa or MasterCard, will usually refund a fraudulent or bad transaction, after investigation. Using a credit card in Dubai, and indeed using a credit card in the UAE generally means that you can shop ‘til you drop in the big shopping malls, safe in the knowledge that your details and your purchases are safe.

What do You Need to Know About Credit Cards?

Before you decide which credit card to go for, you need to know about credit scores. If you don’t have any credit history, using a credit card (sensibly) can help you build up a score, which will allow you to apply for future credit options, such as a mortgage. Obviously you need to use your card responsibly, otherwise your score will go the other way.

You also need to think about the type of card you want. Credit card eligibility in the UAE covers a wide range of information, so even if you don’t have a regular bank account, you may be able to find a credit card without a salary transfer UAE option, and you could also find a credit card without bank statements too. It’s about shopping around and finding what is best for you. There are many Mashreq Neo credit card offers, you can apply online and usually receive a decision instantly. Your card will then be sent to you in the post a few days later, with your PIN following close behind.

Provided you pay off the monthly balance on your card at the end of the statement date, you won’t pay interest and your card will simply be a useful way to spread costs over the short term. If you don’t clear the balance, you will then begin to pay interest on it, which is how many people slowly get into trouble. By being aware of your spending and using your card carefully you can avoid this issue. If you do have a balance on another card, you can often transfer it to a 0% interest offer, so you have a set number of months to clear the balance, without paying any interest. This is something to look into when you look into applying for a credit card online in the UAE.

Disclaimer: This article has been prepared solely for information purposes. It does not constitute an investment advice, solicitation, offer or personal recommendation by Mashreq, or any of their related parties to buy or sell any securities, product, service or investment or to engage in or refrain from engaging in any transaction, particularly, in any jurisdiction where such an offer or solicitation would be illegal. Neither Mashreq nor any of their related parties warrant the accuracy of the information provided herein and views expressed in this article reflect the personal view which does not take into account of individual clients’ objectives, financial situations or needs. Investors are required to undertake their own assessment and seek appropriate financial, legal, tax and regulatory advice to determine whether such investment is appropriate for them in light of their experience, objectives, financial resources and other relevant circumstances. Neither Mashreq nor any of their related parties accept any liability whatsoever for any direct, indirect, consequential or other loss arising from this article and/or further communication in relation thereto. Mashreq do not accept any obligation to correct or update the information in this article.

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