10 Things First-Time Credit Card Users Need To Know

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Credit card is gradually gaining momentum. With the introduction of free credit cards in UAE, credit card members have only been rising. With its offers of benefits and rewards, it has become an asset for its users too. But like everything, credit card has its downside too. If a credit card member becomes flippant about it, a credit card can quickly turn into a liability.

So, to help you with your first credit card, we have compiled a list of 10 things you should know about your credit card

Pay Your Bill on Time

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.

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Curb Your Spending

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.

Avoid Paying Just The Minimum Payment, If Possible

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.

Understand Your Bill

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.

Lookout For Changes

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.

Check Your Credit Limit

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.

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Annual Fee

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.

Balance Transfer Credit Card

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.

Keep Your Credit Card Safe

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.

To Close Your Credit Card Account

If you want to close your credit card account, follow the steps and it can be done without much trouble.

  1. Check your credit card account. If you have any balance left to pay, clear it.
  2. Contact customer support from your registered number and request them for closing your account.
  3. Ask them for a printed copy of the closed account. This is necessary as proof, in case if there is any issue in the future.

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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.

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