Credit cards are one of the most preferred financial tools, but like all the others have advantages and disadvantages. Therefore in order to gain clarity about their usage, it becomes extremely important to scrutinize their pros and cons. If you own one of the best credit cards in UAE, you must read the below mentioned points to ensure that you use the cards wisely.
- More purchasing power: With a credit card in your pocket, you can make a purchase even when you are running low on cash in your account. This freedom of being on your own and being able to buy the thing you need makes credit card a very important financial asset.
- Lucrative Rewards: Credit cards offer reward points for every purchase that you make. With these rewards, you get additional benefits such as discounts on shopping and dining, complimentary valet parking, discounts on flights, access to airport lounges, and more. All these lucrative offers make the best credit cards in UAE as one of the best choices for spending.
- Easy track of expenditure: With the credit card statements coming right into your inbox and phone, it is very easy to keep a track of how much you have spent. Also, since you have easily understandable statements, it makes even easier to keep a strict check on your expenditure.
- All time convenience: With best credit cards in UAE, you need not carry cash in your wallet. Credit cards are easy to swipe and the payments can be carried out within a few seconds. The tap and feature in the new credits make the payments even more quick than usual. With a credit card in your pocket, you also need not worry about your cash getting stolen.
- Aid in an emergency: You cannot always be carrying a lot of cash with you. Therefore, if an emergency arises you should have some money to attend the issue. Having a credit card gives you that freedom to meet that unexpected expense.
- Builds credit score: Spending via credit cards helps to build your credit score. Timely payments and expensive purchases positively impact your credit score. Having a good credit score further makes you eligible for better interest rates and financial benefits.
- Buy more than required- Though credit card offers the financial freedom to spend whenever required it makes you vulnerable to spend more even when you do not have enough money in your pocket. This habit of using the card recklessly can put you in huge debt.
- High interest and fee – When you use a credit card is like borrowing or more appropriately taking a loan. If you are unable to repay the bill on time, you will end up paying a large amount of interest on your bill. Mismanaging a credit card will not only lead to or maxed out a card or high balance but also to huge debt in the form of interest.
- Fraudulent activity – Cashless transactions are a blessing but are surely subjected to fraudulent activities like any other electronic form of payment. Despite all the security features, credit cards can be stolen or copied. All these activities can put you in trouble and liable to pay the money you haven’t even really spent.
- Mount a lot of debt - When the bill is generated and you are ought to pay it at the end of your billing cycle; you may come across something like the minimum bill due. If you do not have enough money to repay the complete bill, you can pay the minimum bill and prevent your CIBIL from going low. But, remember that you’ll pay hefty interest on the remaining amount.
Credit cards are remarkable financial tools despite some of the disadvantages they offer. I certainly believe that this form of plastic money can be a real boon if used wisely. The best credit cards in UAE can offer financial freedom to their users along with lucrative offers and benefits.