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Let us first discuss a few basic concerns that need contemplation before getting a credit card.
After you obtain a credit card in UAE, you need to make sure that you are using it wisely. Here a few credit card tricks for the same.
Make sure you remember this always. Only if you have paid your balance timely and in full each month, you won’t have to bear any interest or charge. In fact, you can earn interest on the cash you had from the time of making a purchase to the time the card statement becomes due. That is almost fifty days in interest gain.
Let’s consider that you are unable to pay the balance in full each month, however, your total debt is reducing steadily. You wish to enjoy the advantage of the benefits of the credit card but do not want to add to the debt load. In case you have just one card to start with but are only in debt, you must try to first pay that card off before going in for new accounts. However, if you own more than one credit card, there can be a chance of continuing to pay off the existing debt without incurring any interest on fresh purchases. The key to maintaining a clean card is by paying the balance in full monthly.
When you are paying your balance in full every month, you get a free loan from the bank starting from the purchasing time to the payment due date of that cycle. The banks offer a grace period for a few days from the date the statement closes and the due date of the bill. It is advised that you make a purchase the day prior to the closing date of the cycle. This way you will have a few days’ time to make payment for it before incurring any interest.
The people making huge spending earn a lot of rewards every month, however, the rest of you need to be more creative. Banks, in order to find more customers having a good credit score, they have been offering unprecedented joining bonuses for attracting them. As a result, the cardholders having a good credit who are able to wait patiently for an ideal deal enjoy benefits.
When you wish to change your credit card, you have a variety of options to choose from. Even those customers having an average credit score may expect their emails to be filled with credit card solicitations. As tempting as it sounds, make sure you do not change your credit card like your clothes. Excessive change of credit cards may harm your credit score. It can also cause difficulty in tracking your spending.
The Closing Thought!
Just like all other businesses, credit card companies also wish to make money. However, sometimes their tactics may involve rules that may exploit the card members. It is advised that you compare credit cards before selecting the one for yourself. Do not use your credit cards blindly. Keep yourself aware of the additional fees that may have to bear. Pay off your balance on time every month so as to avoid interest. Take advantage of the benefits offered so as to ensure that your credit card is acting as a valuable financial tool.