Credit cards are powerful tools to help keep your finances in order. They can cause a lot of damage if you’re not careful with them which mean using unnecessary. A few benefits of holding a credit card are;
– As long as you pay the bill by due date and not a defaulter, you can use company’s money for free however up-to a certain limit. There’s no need to pay interest over any commodity purchased for around 15 to at-least 50 days.
– Budgeting is easy as it helps you spend wisely, thanks to amount limitation. You don’t even have to compute manually, just enter the PIN and get the result.
– Depending on the type of card or service availed; you may be offered cash refunds, free air miles and other rewards on spending.
Nevertheless, there’re also a few downsides. Here’s one for example;
– Beware all spendthrifts! Credit cards can bankrupt or end you in a massive debt pile that follows for years. The money you spend is actually a loan repayable and while these credit card companies aren’t actual banks, they operate similarly. In-case of non-payment after a month or whenever the sum is due, interest is charged making things messier.
Choosing the Card
Even if you’re committed to use it safely, picking the right credit card is awful hectic. Answer the question honestly; will you keep borrowing money or will pay the dues every month? In-case of borrow, a card with minimal annual interest is preferred and don’t get off-tracked with offers such as cash back or rewards. Such rewards are only worth a penny while you pay a dollar for each; totally unwise.
Choosing the best interest rate isn’t simple as most companies charge different interest rates on a single card based on credit score. Even when applying, you’ll be charged 14, 18 or 22 percent depending on financial history. These rates tend to change for many reasons while companies assign different titles to them such as “fixed or variable” describing interest rates. Expect to be charged anytime for any reason!
The Best Deal is on!
Credit card industry has expanded beyond imagine during the last 15 years. To keep growing and build a large customer network, companies come up with seductive promotional offers. Taking advantage of RakBank credit card in Dubai, UAE can pay attention to the following aspects.
– Balance Transfer: Now you can pay off debts in old card by moving them to new ones. Though it’ll hurt your credit score, keep your old account open as it leaves a good impression.
– Frequent Flier: People benefit more on air-miles that are redeemable. Reward program depends primarily on factors like destination, number of miles travelled and how flexible is your trip plan. Flying in first-class is expensive but it gives the best frequent-flier miles depending on how far is your destination. You can upgrade the seats to enjoy air-travel in many different flights as long as they’re accepting credit cards. Beware of cards that say “Earn miles on any airline” as it’s just a trick to trap customers.