A credit card allow, you to borrow money from your bank to make your purchase with rewards. Most online purchases and payment can be made by credit cards.
The bank that you received the credit card from keep track of your all purchases, and ensures that all times the amount you owe is below the credit limit that you are approved for. At the end of every month you receive a bill to clear the amount that you have spent using your credit card.
There are different types of credit cards in UAE available. These cards vary on interest rate and are available based on your salary. They each come with different interest rates and offers.
Credit Cards in UAE
In UAE a credit card is the most common banking product used by consumers. It makes sense to have credit card, as carrying around cash can be risky at times. A simple credit card can become a great convenience to you and if you know to use it right an interest free. Though if you don’t understand how to use a credit card and you continue to pay the minimum balance you will catch yourself in a financial trap, and end up paying anywhere from 20% to 45% per annum interest.