For many people in UAE, cash is dying. According to the latest data supplied by a market research firm, UAE consumers are increasingly living in a cashless world and abandoning their beloved paper bills and coins in favor of plastic money. Continue reading to know how credit cards prove themselves efficient when you wish to go cashless…
Don’t look for an ATM now, just swipe your card and go cashless. With a credit card, you don’t need to carry cash with you; use your card for making all the payments. Even most of the vending machines nowadays come with an inbuilt credit card slot that you don’t need to scrounge for change, just carry your card and you are good to go. Here are a number of added advantages of using credit cards to go cashless:
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[toc]You can build a good credit rating by using your credit card
Using your credit card to buy things and then paying off the bills every month will help you build a good credit score. Try and spend within your credit limit, and pay the bills timely so you don’t have to pay huge bills in the end due to the added interest. Using a credit card in UAE will not only help you to maintain a good credit rating from the start but will also allow you to rebuild your credit score if you’ve had problems with it in the past.
Credit card providers offer automated billing
Most of the credit card providers in the UAE provide an option for automated billing. With this feature, you can pay all your monthly bills with your credit card. You don’t need to remember the due dates for different bills; all you need to remember is the due date for your credit card. You can also adjust your online account settings so your bill is paid automatically on a certain day of the month through a direct bank draft.
You can earn rewards and redeemable bonus points
Majority of credit card providers in the UAE work on a reward point system, where you earn certain points against each transaction that you make using your credit card. Often companies will provide special offers where spending in a certain category will double your points. When you reach a threshold, you can redeem your earned points for gift cards at stores or buy items online. Therefore, use your card in a manner that helps you get the best out of the rewards and benefits you are eligible for.
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Credit cards come with extra perks like insurance and added benefits
A lot of credit cards in the UAE come with a bundle of consumer protections. Even if you’re not interested in credit card rewards per se, you can still leverage the benefits of a credit card. For example, some of the best credit cards out there offer perks such as free travel insurance, primary and secondary rental-car coverage, price protection, and extended warranties. Some premium cards come with guaranteed gift vouchers and benefits, such as free access to airport lounges. Some gifts may also be provided as joining benefits, others as periodic benefits.
Credit cards are universally accepted unlike debit cards
Some purchases may be a bit difficult to make when made with a debit card. When you want to stay in a hotel room or rent a car you’ll have a much easier time if you have a credit card. Hotel and car rental companies prefer customers to make their payments using credit cards. So, it gets easier for them to charge customers for any sort of damage. Also, while traveling in a foreign country, merchants will not accept your debit cards due to their limited access, but with your credit card, you can enjoy universal acceptance.
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Credit cards are secure
Credit cards are a secured method for day-to-day transactions. Even if your credit card is stolen or used fraudulently, none of the funds can be drained. All you need to do is to inform the credit card provider about the fraud and they will block your card ensuring that you don’t pay for the transactions you didn’t make. However, as a basic measure, make sure that you always keep security details such as security pin, CVV number, OTP, and expiry date private and secure. Be careful not to swipe your card in any place except POS machines and ATMs. An unsecured swipe could lead to your card being cloned and misused.
Credit cards in UAE have become a necessity in several ways, especially when it comes to cashless payments. They score over debit cards because of the reward points as well as the ease of conducting transactions even during a financial crunch. Therefore, credit cards can prove to be highly beneficial if you use them carefully and efficiently.
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As you have already seen that credit cards come with so many benefits to offer, it is about time that you shift all your purchases to credit cards and manage your expenses more efficiently and easily. At the same time, bear in mind to never come under a huge debt that you’re unable to pay back on time. Understand your card’s fee structure, rewards, interest rates, and penalties. Also, make sure that you do your research well and compare various cards to determine the best one for yourself and your lifestyle.
