6 Reasons Why You Need a Credit Card in UAE

6 Reasons Why You Need a Credit Card in UAE

We have all heard stories about terrorists, partly because of the convenience of credit cards, and they spent a lot of time to pay their debts. In short, a piece of plastic can make shopping easier, but in the end, you still have to pay the bill. Not surprisingly, these stories have prompted many to abandon the use of credit cards. I am one of them until I realize that this “strategy” (if it can be called) is not good for me. Why in the world, can’t I get free to travel at the end of each year like my friends? Today, I want to convince people who don’t like credit cards to change ships. The following six reasons convince me that maybe they can do the same for you.

Reasons to create a credit card in the UAE

  1. Good credit score
  2. Rewards
  3. Help in Emergencies
  4. Safer to use than Cash
  5. Keep track of Spending
  6. Extra Protection

1- Good credit score

You may need a loan (mortgage) sooner or later, and you will want to have a good credit score. No credit card can cause you more trouble because it is difficult for a bank or other loan provider to determine what terms it can provide for you. By having a credit card and using it responsibly, you can build your credit score over time – when the time is right, you can get a better deal. By paying off your monthly payments, you will get the same “experience” as your debit card.

2- Rewards

If you receive a credit card that provides a reward, you can earn points or cashback for every dollar you spend on that card. Again, this assumes that you have no balance for one month to another – because if you do, you will need to pay interest on the balance that exceeds any return on your credit card. The important thing is that this is how we scroll, which helps us score free to travel at the end of each year. On the other hand, you can choose a credit card that provides a cashback reward.

3- Help in Emergencies

It is recommended to have a contingency fund so that they can cope with the difficulties they face in life, but we also realize that it is easier said than done.

What should you do if your car fails or your computer suddenly stops working? Most people think that these two are the necessities for doing other things in their lives. Most people tend to pay for car repairs or purchase new computers with credit cards because there is no emergency funding. As long as you pay off your debts on time, there is nothing wrong with this. But even if you can’t do that, you need a working car and computer (or any emergency).

4- Safer to use than Cash

If the credit card is stolen, you will not suffer any loss by calling the bank immediately and reporting the loss. It will cancel the credit card and issue a new credit card for you. It’s that simple, but if your wallet is stolen or lost, you can say goodbye to cash. Also, if fraudulent charges are found, the credit card company will remove fraudulent charges from your account.

5- Keep track of Spending

But there is a trap here. Although you receive credit card statements regularly and will show you where the money is going, it is much easier to make a purchase with a credit card than with a cash. In short, cash can be “followed” with cash, while credit cards do not have similar things. Just plastic to be fair, these credit card statements will accurately show you’re spending, and some credit card companies will even classify your expenses. This can be a great tool if you have a budget; as long as you can control spending, credit card statements can be a great tool in your personal finance library.

6- Extra Protection

Many credit cards come with handy tips, such as free travel insurance, which you can use when your travel is delayed or canceled, lost or lost during your trip. Also, some cards also include purchase protection, including free replacement of your purchases 30-90 days after purchase. Typically, as part of the same package, you can get an extended warranty plan that provides the manufacturer with a two-year warranty. This saves a lot of expensive service plans.

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