How to Choose the Best Credit Card Deals in the UAE?

How to Choose the Best Credit Card Deals in the UAE?
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Selecting the best credit card deals in the UAE is not as easy as it sounds. To go through all the available options and select the one that is suitable for you to pay cheque, your lifestyle and your needs can be a daunting and time-taking task.

There is a wide range of variations in credit cards in the UAE, customized to suit your modern lifestyle and income range. Hence, it is necessary to realize that any credit card is not superior to the other one and in fact is does not even suits everyone. This little plastic card can be a great friend for you if used wisely. This is dependent upon whether you use these cards to help you while going through a financial strain, manage regular expenses, cash flow maintenance, or for your luxurious tastes.

The income eligibility to apply for a credit card in Dubai going as low as AED 5,000, credit cards have become accessible to most of the residents in the UAE.

Tips to Select the Best Credit Card Deals

There are a lot of factors that are to be kept in mind while selecting the best credit card deals in the UAE. Following are some suggestions on how to select the one which is suitable for you while making sure you can receive the most out of it.

Spending Habits

Whether you are using a credit card for the first time or are experienced in using it, you should always take note of the usage of your credit card regularly. It is advised that you are well aware of your spending habits and know clearly for what purpose are you going to use your card- payment of utility bills, entertainment, dining, shopping, payment of school fees, traveling, or just for any other regular expenses.

A lot of families rely on credit cards for the payment of the school fees of their children. However, your pattern of vacations also has an influence on your credit card usage as a lot of credit cards offer amazing travel benefits.

Pocket-friendly

You should also ensure that you are capable of paying off the amount that you owe the credit card provider every month. You can also opt for repaying the provider over several months. If you plan to pay off your balance in full that too on time each month, the interest rates of your bank (profit rates in case of Islamic banks) will not be of much consideration for you. However, if you cannot pay your balance in full then it is preferable to select a credit card with a low APR (Annual Profit Rate) because the APR for many banks can reach up to 48 percent.

Since all Islamic Bank have Shariah compliance, they do not charge any profit on profits. This is a good consideration while selecting a credit card. Apart from the interest rate, you should consider annual fees as well. A lot of banks offer free for life credit cards, however, annual fees might be compulsory for all the co-branded cards.

Make sure you thoroughly go through the terms and conditions before selecting credit cards in the UAE. Also, look out for charges and fees that are hidden like daily profit and cash advance charges. Credit cards give you offers like zero fees for transactions on balance transfers that helps you in saving money. Under this scheme, you can transfer the balance existing in one credit card account to another.

Variety of Benefits

Once you have considered your spending habits and your budget, you should then take into consideration the number of incentives and benefits available on different credit card deals.

Based on your requirements, you can select from a variety of benefits which include cashback and discounts on movie tickets, purchases, air miles, dining, school fees, shopping, and retail merchandise. You can also earn redeemable reward points.

A few credit cards come with lifestyle and travel benefits which include, memberships at health clubs, access to airport lounges, golf privileges, free valet parking at airports and malls, cashback on various international and domestic transactions and many more.

Stay within your Credit Limits

Always keep in mind that no matter what amount of freedom you get from your credit limit, you will have to pay back the debts at the end. Select a card that has a considerable limit so that you are able to take care of your expenses and pay them back within the required time. Also, remember you should always spend from the credit card keeping in mind your credit limit which is determined by your credit card provider.

Terms and Conditions

You should always carefully read all the terms and conditions on the credit card before buying one. Check for hidden fees and charges, limits on spending and more. After you are done checking all this, you can select the best credit card deals in the UAE.

In a Nutshell

A credit card always proves to handy although you need to be careful about the mounting debt. No credit card is as such better than the other, the best credit card deal is the one that suits your needs and requirements properly.

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