A credit card can be quite a valuable tool if it is used effectively but do you know easy and effective ways to manage your credit cards for your personal gain? Credit cards, if used, ineffectively, can lead to a world of harmful consequences. You may have the best credit card in UAE, but to use it well, it is essential that you follow a few simple steps.

MoneyMall, brings you 9 smart tips and tricks to make credit cards in Dubai work for your personal gain…

• 1. Always pay your credit card bill before the due date

Paying all of your bills on time is a great way to keep your interest rates low and improve your credit score. To avoid missing your due date, set a reminder on your phone a few days beforehand or mark the date on your calendar. 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.

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• 2. Take advantage of the rewards

Credit cards give you reward points for specific kinds of spending. Don’t ignore this by using some random card everywhere. Collect all your points, Eventually, it will be a useful amount. Your accumulated points, thereby, can be redeemed for rewards in cash or kind. Use your credit card in a manner that helps you get the best out of the rewards and benefits you are eligible for.

• 3. Keep your credit card details secured

Scammers keep finding new ways to defraud credit card users. As a basic measure, 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.

• 4. Pay your bill in full every month avoid the habit of minimum due payment

It’s often mistakenly believed that making the minimum payment on your card dues is sufficient. To avoid penalties, you must pay your bill on time. But to avoid heavy interest rates, you must also pay the bill in full. Don’t pay attention to the minimum dues, and make it a point to clear your full card balance every month.

• 5. Never use your credit card at an ATM

Credit cards also let you withdraw cash from ATMs. Avoid using this facility because even though they are allowed, ATM withdrawals attract heavy charges + Heavy interest. You wouldn’t want to pay that, would you?

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• 6. Only use your card for the big purchases

Sometimes, the little as AED 10 and AED 20 purchases can, over time, build up to a huge credit card debt when left unchecked. Consider using your card just for big purchases instead. The best way to do this is to save up for your purchase in cash first. Then, after you make the big purchase with your credit card (and reap the rewards points), you’ll have the funds to pay it off right away.

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• 7. Make use of 0% Balance Transfer Credit Card offers

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• 8. Choose cards with extra perks

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. 

• 9. Check Your Credit Card Statement Regularly 

Every month your Bank sends you a Credit card statement that details your transactions from the previous month, Make sure you spent at least 5 minutes to review all your transactions if you are not able to recognize any transaction or there some hidden charges call your bank or Credit Card provider immediately, Whatever the transaction amount will be, even if it is few fils only, don’t ignore it, call your bank and clear that out.

Credit cards in the UAE are a necessity in many ways. They score over debit cards because of the reward points as well as the ease of conducting transactions even during a financial crunch. Therefore, it is always advisable to 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.