Why UAE is The Best Place For a Credit Card
The financial perks in the UAE is one of the most attractive reasons expats relocate to the region. Attractive salaries; accessible credit; a financing system that aims to protect its nationals and yet, is open to most other nationalities; and no tax.
The UAE has provided fertile ground for job opportunities and progression, business ventures and a better quality of life for many â€“ and the financial infrastructure certainly has a key role to play in that.
So if you are looking to apply for a credit card or personal loan in Dubai or its surrounding region – for whatever reason – you are probably in one of the best places to do so. Lending is booming in UAE as interest rates are well-publicised as being the lowest they have been for 15 years.
What UAE credit cards offer 1qwsxc
Each bank will have different benefits attached to their credit card, but generally their perks are all universally to give you control over lending, when you need it. You can use it to pay for items, and you have a set amount attached to your card that you can borrow however much from â€“ providing you repay a minimum amount monthly.
If you use credit cards sensibly, they can be a great asset to a home and help it to function in a better way with less financial stress and hardship. It is only when they are misused, or used excessively without due care or attention to the balance, charges and repayment dates that problems can arise.
Traps to avoid
Most people just sign up to a credit card like itâ€™s just a tool to pop in a cash point for free money. They donâ€™t spend any time learning how to use it, or what the terms and conditions are â€“ and therefore, generally donâ€™t maximise the way they use it.
General things you can learn from doing so are:
- Making sure not to just carry forward your balance, or only pay off the minimum each month is a good way of avoiding the credit card trap. This will help you avoid being charged hefty interest rates.
- Always pay off the outstanding balance at the end of the month.
- Only use credit cards for real necessities and large purchases that you couldnâ€™t afford to buy in one go – and that are essential, rather than unnecessary, luxury items.
- Weigh up before purchasing whether you can afford the repayments each month â€“ then you wonâ€™t risk overspending.
- Donâ€™t be late with repayments as this will result in severe charges and penalties in the UAE.
Credit cards are there to help make juggling your finances a little easier, but it is advisable to remember they are not a tool to enable living ridiculously beyond your means. At the end of the day, it isnâ€™t free money in a never-ending pot, but borrowed money that you will still have to pay back at some point.
Remember â€“ if you lost your job, or had to use your savings for an emergency, then a credit card could get you out of a sticky spot if something happened. But if you use it to buy yourself things that you want, rather than what you need, then you will have no access at all to funds for a necessity.
Why the best credit cards are in UAE
UAE banks have been criticised in the press recently for marketing credit cards and loans aggressively with promotions or incentives, such as quick processing and low or no interest rates. But it is worth remembering that reputable, established banks will always encourage sensible banking and are still rigorous in performing the appropriate checks on potential applicants and processing applications adequately and very efficiently.
They want to attract long-term, loyal consumers â€“ and therefore will be thorough and careful about who they approve. But although that might sound scary to customers who are worried about their credit rating, it is better for both parties involved if the bank is more cautious and methodical in their approach as they are likely to be more responsible in taking better care of your finances.