How to Decide if a Credit Card in Dubai Suits Your Lifestyle |

How to Decide if a Credit Card in Dubai Suits Your Lifestyle

Getting a credit card might seem like a good idea, but it's not the best choice for everyone

Posted on

22 November 2017

Last updated on 22 November 2017
How to Decide if a Credit Card in Dubai Suits Your Lifestyle

People apply for credit cards in Dubai for numerous reasons. Whether you want to get a credit card to get yourself set-up in Dubai, need to pay your children’s tuition fees or just want a bit of extra cash for that instant satisfaction when you find something that you like, ask yourself first whether a credit card will fit into your lifestyle and if it’s the right choice for you.
Here is our guide on whether a credit card will fit into your lifestyle in Dubai, or not:

1. Parents

Deciding to have children is renowned for being one of, if not the most expensive decision that you can make, especially in Dubai. As much as we love our kids and want to spoil them, or not spoil them, raising them is expensive in Dubai and try as we might, saving is not always easy. It is a good idea for parents to keep a credit card around for emergencies. You never know when something might happen that you suddenly need a lot of money for.

2. Engaged Couples / Newlyweds

This is an exciting time of your life and with your eyes on the perfect wedding or creating the perfect first home, swiping your card can be very alluring. Getting a credit card can help you start off your life but you will need to be responsible with it. It is very easy to get carried away and before you know it, you have reached your credit limit and are stuck paying off a lot of debt.
If you do want to get a credit card to help with the wedding or house arrangements, we recommend to create a detailed budget. Your budget should also look at your life together after the wedding. Plan accordingly to know exactly what you are purchasing with the credit card and then sticking to this.

3. The Singletons

Being single means that you most likely have a bit extra cash and that it is easier for you to save money for your future dreams. If you are saving for the sake of saving then getting a credit card won’t hurt and can help you build your credit record as long as you use it responsibly. If you are however saving a deposit for a house or a car then it might be better to avoid getting a credit card. You will get much further by saving the money that you would otherwise be paying on interest. Paying your bills on time and having a good track record of paying your bills will help you increase your credit score if you are worried about that.
SEE ALSO: A guide to choosing a credit card in Dubai

If you are still young, then we’d recommend rather saving for expensive items you want to buy. Having to work and save to get something will make you appreciate the item and the value of money much more than when you instantly satisfy your wants.

4. Retired or Retiring Soon

You have prepared for your retirement and don’t plan on borrowing money again but what you might not realise is that you still need to maintain a good credit record. Even though you don’t use it, or make just one purchase with your credit card a month and then pay it when month end comes, it is important to get or maintain your credit card when you decide to retire. Not having a credit record, or a good one at that, can become a hindrance if you suddenly need to borrow a large amount of money.

5. Wondering Traveler

 If you enjoy travelling and aren’t planning to stay in Dubai for a long period then you are better off making a point of getting through on your monthly salary. You don’t want to get caught in the debt trap where you cannot spread your wings and continue on your journey because you still have responsibilities tying you down in the country.

6. Impulsive Buyers

If you struggle to manage your money and absolutely, immediately need to have that item that you saw in the mall then a credit card is most probably not a good idea for you. You might end up overspending on your credit card with more debt than you can manage.

SEE ALSO: A guide to opening a bank account in Dubai

There are many arguments for and against getting a credit card. At the end of the day, you will have to make the choice for yourself on whether getting a credit card is the right choice for you. Be sure to do proper research before deciding on a credit card and make sure that you read through the fine print before signing for anything.
If you are responsible with your card, it can be one of the best decisions you will ever make.