We look at four of the biggest advantages of purchasing using a credit card
4 November 2020| Last updated on 22 February 2021
Smart spending isn't only about what you purchase, but also how you choose to pay.
Credit cards have their own unique perks and features that you may be missing out on if you only use cash or debit cards. Used well, there are a lot of advantages that come with using a credit card in Dubai, or anywhere else!
Much like any other financial tool, credit cards also have their own pros and cons. However, they can actually bring more benefits and value to the table when managed responsibly.
Below are some of the main advantages of spending on credit that will have you reaching out for your credit card on your next purchase.
1. Paying with credit can be very rewarding
Cashback, rewards points, travel miles, and store credit are just some of the main benefits of purchasing with your credit card.
With plenty of credit cards available in the Dubai market, you're spoilt for choice when picking the right card that will reward your lifestyle, spending habits and day to day needs.
If your lifestyle involves you spending more on day to day purchases, such as fuel, groceries, or retail, a cashback credit card is a great way to get more value out of money spent.
If you travel often, then travel credit cards and frequent flyer cards would be the best fit for you. These can be used for seat upgrades, free flights, travel packages, hotel stays, and even travel insurance.
Speaking of travelling often, your credit card will make for a convenient form of payment while you're in a foreign country.
Compared to debit cards, credit cards are more readily accepted worldwide. It's a hassle-free way to book accommodation, pay for goods and services, and rent cars.
You can also take advantage of lower exchange rates on your credit card instead of buying foreign currencies with high exchange rates at airports.
3. Low-cost borrowing from banks
Many credit cards offered in Dubai have 0% EMI on some purchases for up to 12 months. Others offer installment plans with low interest rates, so it'll be easier for you to manage large purchases.
So if you're considering splurging on a new phone, paying off school fees, or going for an automobile upgrade, that little plastic in your pocket is your new bestfriend.
4. A great way to build your credit history
Credit scores are essential if you plan to apply for a loan at some point. Your score is a reflection of your likelihood to pay your bills on time, and it partially comes from your credit card history.
Without a credit history, it can be difficult for you to get a loan or to buy a house or car, which can get in the way of your purchasing goals.
The more you use your credit cards and make your payments on time, the better you'll build your credit history and improve your credit score. Doing so will increase your chances to get better interest rates on future credit cards and loans, and you may even receive a higher credit limit.
All in all, when you use your credit card smartly, you can easily value from the offered rewards, protection, convenience, and ability to build your credit.