Is it Time to look for a New Credit Card in UAE?

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We have all come across the famous saying, “nothing is constant except change.” Therefore, we are all well aware that nothing remains the same, and I mean nothing!
Not even your credit card!

If you are someone residing in the UAE, you will come across several fast-paced changes, be it in your lifestyle or your finances. When it comes to holding a credit card in UAE, if you are someone who has been holding onto one card for too long, it is probably a good idea to consider change and explore the market. 

Terms change, interest rates change, moreover, your financial position changes. Therefore, if your life is moving at a fast pace along with your financial position on the passenger seat, why would you want to continue holding the same old card?

Signs That It’s Time to Look for a New Credit Card in UAE

There are a few signs that indicate that your credit card may require an upgrade, any of the following signs should be sufficient for you to consider a change:

Improved Credit

If you hold a bad credit, the credit card options offered to you are limited. If while opting for a credit card in UAE, you were holding a bad credit, you may have opted for a less attractive card in order to rebuild your credit and be qualified for something better.

As there is an improvement in your credit, you should seek a new credit card in UAE that offers better terms than what you are holding currently. These offers can vary from no annual fee to rewards, or lower interest rates, among many others.

Better Offers for Better Cards

If the credit card providers in the market are offering you cards with better terms than your current card, you should consider taking one of the offers. Based on your credit information, the providers prescreen you and offer you only if they think you are a good fit.

You should start by comparing the offers online and then call the provider or apply online if you come to a decision.

The Interest Charged is High

Before you come to the final decision of switching your credit card, try to negotiate a lower interest rate with your existing credit card provider. If your provider is not ready to work with you, then you should prepare yourself to move your balance to a new card. It is a good idea to look out for a 0% balance transfer introductory rate on your new card. 

No Rewards Earned

In the market these days, almost all cards are packed with great rewards for the consumer’s spendings incurred on the card. If you tend to use your card often and have healthy financial habits of paying your balance in full, holding a rewards credit card in UAE is an ideal option. A rewards credit card will reward you with additional perks for the spends you make on the card.

No Rewards for Your Spending Categories

There are credit cards that offer extra rewards on certain spending categories. For example, if you are someone who loves to travel by road and tend to spend a huge chunk on fuel, then you should look for a card that offers rewards on gas spending. Similarly, if you are someone who pays for their groceries using the credit card, you can opt for a card that rewards you on grocery spending. Otherwise, you can also opt for a cashback credit card in UAE that offers accumulated cashback on your spending.

No Increase in Credit Limit

If the credit limit on your card has remained the same even though your income and credit Score has gone up, it is time to consider a new credit card in UAE. Some cards also have a cap on the credit limit despite factors such as the income of the cardholder. You can consider switching to a new card if you are unable to get approval on the increase of credit limit on your preferred card despite being a responsible cardholder for many years.

No Additional Perks for Paying Annual Fee

The following are the scenarios in which you should actually pay the annual fee on your credit card in UAE:

  1. You are rebuilding your credit.
  2. The only cards you are qualified to have an annual fee.
  3. The perks offered by your credit card outweigh the cost of the annual fee.

If otherwise, you should switch from your credit card charging an annual fee to a card without any such extra cost.

You Want to Make Use of Signup Bonuses

There are many offers on credit cards that reward the cardholders who manage to spend a specific amount within a set timeframe. The condition being, that you have to be a new sign up in order to avail this bonus. You should reconsider sticking to your current card if the new card can offer you such a reward for signing up.

No Personal Credit Card

If the credit card you hold is one in which you are an authorized holder or a joint account holder, you should consider applying for a new credit card in UAE. When you hold a credit card with somebody else, the credit history depends on their usage of the card. Once you are qualified enough to own a credit card, you should look for a credit card of your own, even if you choose the same provider.

Current Credit Card is Discontinuing

Sometimes it happens that the credit card provider chooses to discontinue a particular card that you may be holding. You may be provided with an option by your issue to switch to another card that falls within its portfolio. However, if it fits your preference, you can even look for different cards in the market.

To Further Conclude

In most cases, it is a good idea to keep your old credit card in UAE open. This is because this account age helps to benefit your credit score. Therefore, even if you switch to a new card, you should use your old card every once a while to keep it active and as a part of your credit score. However, you can close your old account if the card charges you an annual fee. But before that, make sure you make your payments in full.

Last but not least, always remember opening a new credit card account opens up the capacity for debt. it is essential to be sure that you do not end up overspending just because you have the capacity. It is best to only charge what you can afford to pay in full on a monthly basis, even if it is divided between two different credit cards.

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