8 Things you Should know about Credit Cards in UAE
Today, credit cards have become an important financial instrument for most people. As long as they have a credit card, they can splurge without worrying about not having enough cash-in-hand. With attractive offers such as free credit cards in UAE, more people are opting for credit cards. Having said that, not many people know that a credit card is like a double-edged sword. With the freedom to spend, comes the responsibility of paying the outstanding bill at the end of the month.
In case you want to opt for a credit card, here is a list of 8 things you should know before applying for a credit card in the UAE.
- Minimum Salary- If you are planning to apply for a credit card, be aware that you are required to fulfil the eligibility criteria and the minimum salary is one such criterion. Though, the minimum salary requirement differs from bank to bank.
- Annual Fee- On the basis of the type of credit card, most credit cards charge an annual fee. Read the terms and conditions before signing any document at the time of applying for a credit card. You do not want to end up paying the bills of charges that you were not aware of.
- Interest Rates- As long as the cardholder pays their outstanding bill before the due date, no interest rate is charged. Otherwise, the cardholder will have to pay the interest even after making the minimum due payment.
- Benefits- Every bank offers credit cards benefits depending on the type of card they offer. Some of the benefits include cashback, movie tickets offer, travel offers, golf offers, access to the airport lounge and so on. All you have to do is compare credit cards online and opt for the credit card that suits your needs the best.
- Credit Limit- This is the limit set for your credit card by the bank. Be well-informed about your credit limit. If you exceed the credit limit, you will have to pay the additional fee charged by the bank.
- Exchange Rate- This is the charge that most credit card members have no idea about. Enquire the credit card provider about the exchange rates for overseas travels or buying things online from international websites. Some banks charge a high processing fee on credit cards for making international purchases be it travel-related spends or shopping from international websites.
- Number of Cards- Though getting more than one credit card might seem like a viable option, you have to understand that extra cards mean extra bills. If you can’t keep a tab on your spending, it would be better for you to stick with one credit card. It will help you to curb over-spending.
- Hidden Charges- It may seem like credits cards come with the best interest rates or are fee-free for a lifetime. You need to comprehend that there are hidden charges that most of the credit card applicants overlook while going through the Terms and Conditions. This careless mistake can cost a bomb at times. The hidden charges are usually high and can be levied in the form of Credit Shield, Cash Advance Fee, Balance Transfer Fee, Over-Limit Fee, Currency Conversion Rate So it is necessary to read the applicable terms and conditions thoroughly before signing any credit card application form.
In a Nutshell
While it is easy to apply for the credit card of your choice, make sure you obtain all the information before-hand about the type of credit card you want to apply for. Compare best credit cards In UAE Before you finalize a credit card. It will help you come across the card that suits your credit card needs the best.
Many banks in the UAE offer credit cards that cater to specific credit card applicants. If you want to apply for a free credit card in the UAE, know that there are hidden charges which can increase your credit card bill.