While it is always advisable to choose the credit card based on your spending habits and lifestyle requirements, there are few types of credit card that come in handy no matter what.
Here are three types of credit cards that everyone must have in their wallets.
As its name suggests, rewards credit cards are such types of credit card that offer exciting rewards to its cardholder on making credit card purchases using the card.
Ideally, there are three basic types of rewards credit cards i.e. cash back, travel, and points. Some people opt for the cash back credit cards in order to earn cash back on making transactions using their credit card while some people opt for rewards credit cards that offer points which can further be redeemed for cash or other merchandise. Moreover, travel rewards credit card is famous among those people who are frequent travelers as such types of credit card enables the cardholder to make complimentary flight and hotel bookings and also offers a wide range of travel privileges.
Although many credit cards offer the facility of a balance transfer, opting for a balance transfer credit card is a good idea. The reason being, a balance transfer credit card offers a low introductory rate of balance transfers for a specific period of time.
So, if you want to save money on a high-interest outstanding debt on your existing credit card, then having a balance transfer card is a good way to go.
Please note that balance transfer interest rates differ from card to card. Some of the balance transfer credit cards charge a 0 percent interest rate on balance transfer for some specific months. The lower the promotional period, the more beneficial the card is. However, you will need to have a good credit score to meet the credit card eligibility.
Paying a huge annual membership fee on your credit card is worth it only if you get the rewards in return. But what if you are paying a high annual fee on your credit card and it does not offer you the kind of rewards that suits your lifestyle needs. In such a scenario, opting for a free for life credit card is a great idea.
Free for life credit cards simply means that you will never be charged an annual membership fee. Credit cards with zero annual membership fees are generally a basic type of credit card that offers limited rewards in comparison to those cards that charge a high annual membership fee.
So, if you are not comfortable paying high annual membership then free for life credit card is the right option for you. In short, this type of credit card is there when you need it and as long as you pay the outstanding balance in full, you will not get charged when you don’t make the use of it.
The Final Verdict
As we have already said that there are different types of credit card available in the UAE but choosing any of them does not make sense. It is important to opt for the right credit card otherwise you might end up missing a lot of benefits and privileges. You must choose the credit card after comparing it with the different credit cards online on the basis of their features, benefits, rewards, fees & charges. This will certainly help you select the right credit card as per your spending habits and lifestyle requirements.