Why you should consider using your credit card for every transaction in the UAE

Using a credit card in the UAE for making your daily transactions is a good idea; we’ll tell you why. To begin with, it helps you keep track of your transactions and saves you from running out of cash at any given point. Credit cards in the UAE offer ease of use with multiple payback options. They also offer attractive deals and discounts on selective brands to help cardholders get the best out of their spending experience.

When used wisely, your credit card can help you build an excellent credit score that’ll come in handy when you apply for a loan or other financial assistance. Not just that, you can earn reward points, flyer miles, etc. on your purchases and then redeem them later based on your needs.

There are few other reasons why you must use your credit card to make transactions in the UAE. Let us go ahead and learn about them in detail.

Major reasons for using credit cards in the UAE

Here is a list of reasons you should prefer using your credit card over debit cards to pay bills or make purchases in the UAE.

1. Go cashless: With a credit card in your pocket, you need not look for an ATM and withdraw cash to shop or make other payments. Even vending machines in the UAE have a credit card slot to help you simply swipe the card and make the transaction. The best part about going cashless is that you can use the card now and pay for the transactions later. So the money in your bank account doesn’t reduce every time you use the card.
2. Automated billing: Credit cards in the UAE offer an automated bill payment option. This means you do not need to remember the due date of every bill payment separately. You can set up the automated bill payment option and only need to remember a single due date, that too of your credit card.
3. Build a good credit rating: Using your credit card to make daily purchases and then paying the bills on time can help you maintain a good credit score. If you pay your bills in full and on time, it will help you avoid interest and other extra charges to be applied on your credit card outstanding. This also helps enhance your credit report.
4. Earn cashback and reward points: Most credit cards in the UAE offer attractive cashback offers and reward point benefits against your credit card transactions. The best part about these offers is that you can redeem these points for further online and offline purchases.
5. EMI facility: The best credit cards in the UAE offer easy EMI facilities for cardholders. If you don’t want to exhaust your savings into a huge purchase, you can choose to use your credit card for the same and convert the transaction into easy monthly EMIs based on your financial preferences. This saves you from denting your bank balance or borrowing money to meet your financial needs.
6. Secured purchases: Using credit cards is a secured method of paying for your day-to-day transactions. Even if your credit card gets stolen or used to make a fraudulent transaction, you don’t need to pay for the same. All you need to do is inform your credit card provider and have your credit card blocked.
7. Insurance benefits: A few credit cards in the UAE offer protection against card purchases that might be damaged, lost or stolen. You can use your credit card statement to give an undertaking for the accuracy of a claim in case you wish to file one.
8. Universal acceptance: There are some places such as hotels, car rentals, etc. where you prefer using a credit card for making payments. Even some companies in the UAE also prefer taking credit cards for accepting payments. This makes it easy for them to charge the customers for any loss or damage caused. In addition, while travelling in foreign countries, merchants do not accept debit cards due to limited access and additional security matrix. However, credit cards offer the benefit of universal acceptance.
9. Record of expenses: With credit cards, you can get your monthly bill statements and keep a close track of your transactions. Additionally, you get instant alerts on making every transaction using your credit card, which gives you an idea of the current outstanding amount on your credit card.

The bottom line

Using credit cards in the UAE is always the best idea as most credit card companies offer attractive cashback and reward point offers for cardholders. This helps them to even earn from their spending.

With a wide range of benefits, credit cards in the UAE offer easy payment options. You can simply download your credit card provider’s mobile app or access their online portal to make your credit card payment in just a few clicks.

Story by Pooja Sharma