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So, to help you with your first credit card, we have compiled a list of 10 things you should know about your credit card
This is the most basic and important rule while using a credit card- Always pay your bills on time. It is never a good idea to carry over your remaining balances. You will be charged by the banks for every late payment. As time goes on, the interest rates will keep increasing too.
There is no doubt that credit card makes spending comfortable. You will have to pay the bill at the end of every billing cycle- albeit you can pay it back in installments. Charge your credit card only on things you can afford. You don’t want the bills to come back and bite you in the end.
When you are paying your bills, avoid paying just the minimum bill payment, if possible. It is not beneficial to you in any way. Paying just the minimum bill would only result in your debts getting higher and harm you in the future. With your debts increasing interest rates you will end up paying just the interest and your debt will keep increasing.
It is not easy to grasp every terminology of your bill from the start. So, if you have any queries about your bill contact the customer support and enquire them. Understand how the charges in your credit card bill work. It is really important to figure out your bill and understand how it works.
Remember that Terms and Conditions on credit cards can change anytime. Make sure to be on the lookout for changes, to avoid any unpleasant surprises in your future bill statements. The terms and conditions can be changed anytime by the credit card providers or banks without notice.
Knowing what the limit of your credit card is important. As the interest rate is very high in the UAE, it would be better not to exceed your credit limit. According to the type of card you have, the bank will be the one to determine your credit limit. The credit limit is usually double or triple times of your monthly salary.
This fee is charged by the credit card provider, on a yearly basis, for the use of the credit card. While this was a very common fee in the beginning, due to the appearance of free credit cards in UAE, annual fee has become relatively uncommon. Though there are still some credit card providers who charge an annual fee for secured cards etc.
A Balance transfer, generally called as buyout loans, means transferring the outstanding loan to a separate bank. By transferring your outstanding balance to a different credit card, which has no interest charge, you can save your interest charges. This usually happens in case of high-interest rates and you are unable to make the payment.
The best way to protect your credit card is to not share your card details with anybody. Sharing your card details puts you at risk (of debts). Avoid using your credit card in unsecured shopping websites, teleshopping, etc.
If you lose your credit card, ever, make sure to contact your credit card provider immediately and block the card. Some banks charge you for the purchases made before your call to the provider, even if they were not made by you.
If you want to close your credit card account, follow the steps and it can be done without much trouble.
Over to you
As stated above, understand your credit card charges. If you keep a track on your credit card, it will be a valuable asset to you. With numerous offers of cash backs, rewards/benefits, credit card has been of more benefits than ever.