Pick up the best credit card in UAE to make appropriate finance decision

With over two hundred credit cards to opt for, the borrowers in UAE seem to be spoilt for option. In fact, choice also is quite confusing especially in regards to introductory offers, interest rates, cashback offers, rewards and so on. Here are a few things you should follow while choosing the best credit card in UAE, else you will have risk of high charges.

Check out APR

In UAE, credit card is best for spending on short term basis and the card lenders charge competitive rates that range between more than 2 percent to over 3 percent and it is charged on monthly basis. Id compounded up to annual percentage rate, all these numbers can soar to as high as more than 32 percent and also over 45 percent respectively. Make sure you pick up the best credit card in UAE that offers good perks as well as rewards.

Decide what benefits you want

If you are quite sure that you clear credit card debt every one month, concentrate on benefits it provides. All types of credit card perks include cinema tickets, cashback, free valet parking, complimentary golf days, VIP airport transfers and lounge access. You should not ignore interest rate since you often end up paying it whenever you miss out monthly payment or even run into financial problems.

Need to be aware of credit limits

You need to be careful while selecting credit limit on the card. Make sure you should avoid the risk of falling into debt trap thereby selecting one that allows you to stick to the budget. You need to be aware that few banks often extend limits of credit without even informing the clients that would also lead to all types of overspending.

Check out annual fee always

While some credit cards ask for zero annual charges, other cards charge Dh 2000 and so on. Often experts say that higher fee seems to be worth paying only when you avail good rewards in the return.

Examine rates of foreign exchange

All the issuers of credit cards slap on additional charges for user in overseas that usually range between 2.5 percent to 3.5 percent on any kind of transaction. If you are a frequent traveler then it is advisable that you should choose lower foreign exchange fees and also higher rewards on all types of international spend.

Know about introductory offers

All the banks run all types of periodic promotion on credit cards. Promotions include bonus air miles whenever you sign up, zero yearly fees for first year, complimentary gift vouchers, and bonus cash back and so on. 

Learn about credit shield

This credit shield may be designed to clear up balance on the credit card following serious ailments or death and may also be bought for additional monthly fee. The price often ranges from .5 to .99 percent on outstanding balance but a few policies only provide limited cover. If you run a small card balance or having savings to clear up debt, you certainly do not need it. Few banks apply it automatically and for that you ask for it to get removed.

Learn about terms and conditions

While assessing rewards check, make sure you check out its terms and policies in the best possible way. Ask certain questions: is there minimum spend need? Is cashback percentage attractive but monthly redemption limit low? For you, do eligible spending categories include utilities as well as groceries?

If you want to avail best credit or loan in UAE, you need to first make comparison of the existing loans and credit cards. For the best credit card or loan comparison and recommendation, it is advisable that you should take the help of experts of SoulWallet. It has certainly redefined comparison in the way that has not been done in UAE before.