Best Credit Card in UAE

Few of the people I talked to recently mentioned that credit cards ruin lives. I thought to myself….’yes they do…only if you are irresponsible.’ If you spend excessively, if you carry forward the balances to the next month, credit card is not for you. If you revolve your credit card balances, then you are in I should say a deep S*&T.

I also use credit card and I do not carry forward the balances. So whatever the interest rate that the bank charges does not matter to me. Because I hardly get charged any interest or finance charges because I do not carry forward the balances to the next month. Meaning, I pay off the entire amount due in the current month.

Let me break down this for you.

Best Credit Card in UAE: Which credit card do you use?

I have 2 credit cards. One is Citibank Silver card and the other is RAKBank Master card with AED 9,000 limit each. I predominantly use RAKBank Master credit card because this is the oldest card that I have had and I am happy using it. In the past 5 years I have rarely carried the balances forward. It was only last year that I could not make entire payments as I had lost my job. But I used to make maximum possible payments to the card. (Thanks to my Wife!) RAKBank gives me a cash back of 3% plus other benefits. Isn’t it wonderful?

Best Credit Card in UAE: How do you use your credit card?

Well, as much as possible I pay all my bills online through my credit card. This cuts a lot of my time going to the customer care centres of DEWA, Etisalat and other utility services company. I shop for most of my groceries and essentials through my credit card. And I make sure that at the end of the month the entire outstanding balances are paid off.

Best Credit Card in UAE: Why don’t you use debit card?

Debit cards do not provide you the rewards that the credit cards provide. There is no cash back facility on debit cards. Neither can I book my air tickets through debit cards.(Guess few airlines do it….but not the one I travel).

Best Credit Card in UAE: Doesn’t using credit cards encourage spending?

Not if you are a sensible buyer. In my early career I was caught up with using credit cards for pure enjoyment and paid a heavy price for it. Once I realised the cons of postponing the payment of credit cards, I am careful on what I buy and whether I will be able to repay the amount I borrowed.

Best Credit Card in UAE: What do you do incase of emergencies?

Most of my emergency funds were used up when I lost my job. But now I am accumulating an amount for the rainy day. Using credit cards for emergencies is a complete ‘NO’ for me. I would rather borrow from my dad or a friend.

Best Credit Card in UAE: What’s the lesson?

You need to be disciplined. I have now made a rule for myself. Before I purchase any item I ask a fundamental question to myself: “Is this the item that I NEED to have or I WANT to have.” This keeps me from doing unnecessary purchases. You need to clear your credit cards balances on the next due date. Do not ever be late on payment of credit card. Automate it through the Internet Banking facility.

As believed by some people, credit cards need not be a bad financial instrument. Yes, they can be dangerous if you are not disciplined. I have learnt the lessons the hard way by having an outstanding totalling to around AED 13,000. I really had to learn how to use a credit card. If you inculcate these attributes, using a credit card can be very rewarding. The benefits of credit card have been very useful for me in the past few months.

Every Credit Card can be Best Credit card in UAE if you do not carry the balances forward.