credit cards offers

Credit Cards in UAE | A Complete Guide

With so many Credit Cards offers and Benefits that come with having a Credit Card in Dubai, we at Moneymall.info offer to guide you on how to easily choose the best type of credit card for you.

Credit card offers convenience, consumer protections and a quick way to build good credit, assuming you use them responsibly. Use them unwisely, and your credit can suffer, which affects your ability to borrow money in the future. Understanding how credit cards work will help you choose the right cards for you, manage them well and save money.

WHAT IS A CREDIT CARD?

A credit card is a plastic or metal card that allows you to access a line of credit offered by the bank that issued the card. Every time you pay for something with a credit card in Dubai, you’re borrowing money from the card issuer to cover the purchase. You then have to pay that money back, either in full at the end of the month or over time.

HOW A CREDIT CARDS WORK?

Once you’re approved for a credit card, the bank approves a credit limit – A credit Limit is the maximum amount you can borrow to be used at your discretion. Your card limit will depend on varying factors like your income, other debts and the available credit you have on other cards.

CREDIT CARD SERVICE PROVIDERS

Visa, MasterCard, Discover and American Express- These process credit card transactions. They make sure that the money for the purchase gets to the merchant and that the correct cardholder gets billed.Read more.

Difference between a credit card and other cards

A debit card is linked to your checking account; debit card purchases automatically pull money out of your account. You’re using your own money to pay for things rather than borrowing it. Some debit cards earn rewards, but they generally pale in comparison to Credit Card Offers. Debit cards also have weaker fraud protections.

A prepaid debit card isn’t linked to a checking account; However , you “load” money onto the card, and you can spend as much as you’ve loaded. Prepaid debit cards have some protections, and they come with limitations. For example, some prepaid debit cards don’t offer ATM access or mobile banking. Also, not all merchants accept them well as a Credit Card Offers all of the a above.

Q/A will a Debt Card or Prepaid card affect my Credit history?

A debit card nor prepaid card will affect your credit scores, simply because using them does not involve borrowing money. Only a credit card will affect your credit score.

Which’s the best type of credit card?

At Moneymall.info: “What’s the best credit card for me?” we shall guide you on choosing the best type of credit card for you. Read mor

TYPES OF CREDIT CARDS

CREDIT CARDS OFFERS

 REWARD CARDS

Rewards Credit cards Offers the card holder something back for each purchase made. Generally, these cards require good credit History.

They come in different types:

  • Store credit cards reward you for loyalty by giving you discounts or other benefits for shopping at the store that provided the card
  • Cash back cards Offer money back on the card usage. You can usually get that money as a check or a deposit into a bank account, or you can use it to reduce your balance.
  • General travel Credit Cards Offers you points that you can use to pay for any travel expense. They’re more flexible than branded airline or hotel cards.
  • Airline credit cards and hotel credit cards offers you miles or points that you can redeem for free flights or stays with the card’s partner airline or hotel chain. How you redeem your rewards on these cards might be subject to restrictions, such as dates when you can’t travel.
  • Free for Life credit cards waives off annual charges and the card holder only pays interest upon use of the card.

Rewards cards are ideal for cardholders who pay their bill in full every month. When you carry a balance, interest charges nip away at the value of rewards.

Low Interest Cards 

Low-interest cards don’t give you rewards; instead, they provide value with a lower interest rate, making it less expensive to carry a balance. Many times, these cards will come with a 0% introductory APR period, giving you time to pay off a large purchase without interest. Most expatriates in UAE prefer these types of cards to help them pay for items with high amount.

Balance Transfer 

A balance transfer credit card lets you move your debt from another bank credit card to take advantage of a lower interest rate. Generally, these cards require good or excellent credit.

Reasons to get a credit card

Debit cards are appealing because they don’t involve borrowing money and won’t rack up debt — but they also don’t help you establish a credit history. Building credit history is one of the key benefits of using a credit card.

Others include:

Flexibility: Though it’s best to always pay your balance in full each month, a credit cards offers a chance to to pay for things over time, which helps when you have a major purchase to make or a financial emergency.
Sign-up bonuses. The bonus could help you start an emergency fund (in the case of a cash back card) or take a trip.
Ongoing rewards: Rewards give you back some of the money you spend.
A 0% introductory APR period: This lets you avoid interest on purchases or balance transfers during a promotional period.