These days, Credit Cards have become one of the most preferred modes of payment due to the ease and convenience of use. If not many, most of us have at least one credit card with us. The purpose may vary from keeping it to meet urgent financial requirements, as safe money as it is plastic money, to use and maintain a good credit score and improve the length of credit history, and many others. Therefore, it becomes essential to choose a credit card that best suits your needs.
In this article, we will discuss how to choose the right credit card that best suits your needs. Listed below are points you should keep in mind before selecting a credit card:
- Analyze Your Spending Habits – You want a credit card to get the best out of it. And that is only possible if the benefits and features of the card you hold match your spending habits. For example, if you are someone who is into traveling and spends a lot on fuel, you should opt for a card that comes with rewards on fuel spend, similarly, if you’re a frequent air traveler, a card with Air Miles reward benefits will be the most suitable for you. So, the first thing to do is, analyze your spending pattern and assess card features accordingly.
- Check Your Credit Score – Your credit score plays a vital role in deciding if you qualify for, and also if you do, what segment of card it will be. The Al Etihad Credit Bureau (AECB) is the agency for credit score assessment in UAE. The banks you apply with do check your credit score at the time of application however, it is ideal to check it once before applying as if you apply with an ineligible score, the application will hit your credit score down.
- Decide The Type of Card You Want – You now should look into the main purpose of obtaining the credit card. What is the main reason you want the credit card?
Is it for credit building? Get a credit building credit card.
Is it for paying-off debts? Get a balance transfer credit card.
Is it for earning rewards, cashback? Get a rewards card.
Is it for emergency needs? Get a card with a low-interest rate and zero fees.
In short, you should have a clear idea of the main reason for which you are willing to procure the credit card.
- Check Interest & Fees – Different companies are offering different cards with their own set of benefits and features. It may be a scenario where you may find DIFFERENT CHARGES being applied by DIFFERENT BANKS for the SAME FEATURES. Here, it becomes crucial to COMPARE. Using the points mentioned above, you can sort and compare and check the interest and other applicable charges for your selected cards and make the right choice.
- Compare The Total Package – When you plan to apply for a credit card in UAE, usually, the advantages that you look for are not just one, but many. The easiest way to choose the right credit card that best suits your need is to have it all compared. At this point, when you have sorted your cards based on your spending habits, score and requirement, select and compare these cards where you can get a comparative analysis at a glance. Having collective detail in one place gives a transparent picture of what you are being charged by different agencies for what all benefits you derive from each card. You can then, make the best selection and apply.