Last Updated on February 15, 2024 by Nasir Hanif
With so many credit cards in the market, selecting the right one can be a daunting task. Thi write-up offers valuable insights and practical tips on navigating this financial terrain to choose a card tailored to your individual needs. From understanding your credit score’s impact to identifying specific requirements and evaluating safety measures, this comprehensive piece aims to empower you in making an informed decision.
By delving into the intricacies of personal finance goals and limitations, we will explore how striking a harmonious balance between these factors is key to unlocking the perfect credit card tailored for your lifestyle.
Table of Contents
Know What Type of Spender Are You!
Before getting any credit card, it is important that you understand what kind of credit card spender you are. Here’s a rundown of the type of spender you as an applicant can be –
- Foodie – If you use credit card when dining out or while purchasing ingredients to cook at home or even for ordering the takeout, there are credit cards just for you. There are several credit cards in the UAE that offer high rewards on groceries and restaurants.
- Traveller to the Core – If you are one of those credit card users who travels yet maximises savings, there are a lot of credit cards that offer travel reward points or Miles for booking via selected trip planning outlets or airlines.
- Credit Builder – If you are building your credit score as yet, there are several secured credit credit cards that will enable you to improve your credit score or start building your credit score.
- Shopper – If you are one of those who prefers spending while staying on a budget, there are a plethora of reward-loaded credit cards for you. Most of these credit card offers include points on daily spends, savings on dine out, and travelling.
- Minimalist – If you want to keep it simple and not figure out the best credit card, you can opt for a comprehensive credit card that offers reward points on everything right from groceries to gas. You can also go for cards that have a low annual fee.
Tips to Choose a Credit Card the Smart Way
Besides looking into what kind of spender you are, there are some other aspects you need to look into. These aspects are –
- Take a Long-Term Picture into Frame – Do not limit your credit card selection to sign-up bonuses and first-year bonuses. Look for credit cards that help you build your credit score in the long run and compliments your spending habits.
- Review the Rewards – Before buying a credit card, look for its reward program and how it works for your current lifestyle.
- Assess the Cash Value of the Benefits – When seeking a rewards credit card, assess the real worth of the benefits you’ll receive. Numerous online resources can assist in determining the actual value of each “point” or “mile.” Armed with this knowledge, you can compare the cash value of the benefits to factors like annual fees, interest rates, and alternative card offerings.
- Evaluate Your Credit Score – Selecting banks and credit cards shares similarities. Ensure your decision aligns with your credit score, specific requirements, safety concerns, and goals or limitations. Achieving a balanced approach among these factors will lead you to the ideal credit card plan and bank that suits your needs.
Selecting the optimal credit card is a crucial choice, yet it’s just the beginning. Maximise its benefits by using it wisely. If you’re building credit, pay your bill in full monthly and avoid excessive credit usage. Adhere to your debt payoff strategy with a 0% APR deal. For rewards, use your card for daily expenses and ensure full monthly payments.