the following are 11 easy tips that you shall keep in mind every time you use a credit card in UAE or anywhere in the world.

You may make a lot of purchases with your credit card but must you know that some purchases mean more harm than good. Therefore,

Never charge these expenses to your Credit card…

  1. Your monthly rent or mortgage payments

There is usually a 2% to 3% processing fee on charging your monthly rent or mortgage to your credit card. This counteracts any benefits that you may acquire by making such payments on a credit card.

  1. Impulse purchases

If you like to rack up your points and rewards by charging travel, dining and entertainment costs to your credit card, just make sure that you have a plan to pay your balance off in full once your bill comes at the end of the month.

  1. Medical bills

Charging medical debt to your credit card will rack up a lot of interest while you try to pay off your card. Make sure that you set aside an emergency stash so that you don’t have to use your credit card to cover unexpected medical bills or any other medical circumstances that require urgent money.

  1. Large purchases without Easy payment plans or 0% EMI options

Although it is tempting to charge large purchases to your credit card, experts recommend that you only do this when you know that you can afford to pay off the balance at the end of the month. When a large purchase sits unsettled on your credit report, you will not only get hit by a lot of interest but also wipe out your available credit limit.


Avoid these mistakes in a balance transfer…


  1. Never ignore the fine print

Ignoring the fine print of any financial document is a deadly blunder that can make you unknowingly agree to terms and conditions that you would never agree to in your right mind. If an offer feels too good to be true, it probably is.


  1. Never transfer balance unnecessarily

Before opting for a balance transfer, work out your plan on paper. If your balance transfer turns out to be cheaper than what you’re incurring by making EMI payments or any other payments, the balance transfer may make sense. Otherwise, it may not.


  1. Two cards, one company

Banks do not authorize balance transfer between their own cards. This is simply because they want to avoid losing money on interest charges.


  1. Adding more debt to your old credit card

Remember to not load up your card with debt because that would mean starting from square one all over again with reference to your credit score and debt.


  1. Defaulting

Making late payments drives down the value of you as a customer. Make sure you’re aware of your payment deadlines.


  1. Have a debt repayment plan

A low-interest rate can be a great opportunity to pay off your debts. However, it is highly crucial that you set a proper repayment schedule for all your payments. This will help you slowly chip away your outstanding debt and regain a better credit score.