Getting your first credit card is a big milestone and a big adjustment as it could be your path to financial independence. Having a complete understanding of how credit card works will be a huge factor in saving money in the future. We have listed down the useful tips for getting a new credit card and maintaining a credit card in Dubai
The Thumb rule to maintaining a healthy credit score is paying the bill on time. Make it a routine to pay your credit card balance in full within the given 25-day period. Credit cards are very convenient, but late payment fees can get you to pay more money because of the very high rates
Every bank offers a feature to make the autopay during each month’s billing cycle. You can set up automatic payments of at least the minimum required to pay each month as this step would avoid you from getting hit with late payment charges just in case you miss a particular month. This will help you in saving a lot of money in the near future.
To optimize your credit scores, you should aim for having at least 3 – 4 credit cards this will help you in increasing your credit score. Keep your balances below 30% of the credit limit for each card (zero balances are by far the best policy). Also maintaining different kinds of credit (depending on your needs) will help your scores,
Banks/Credit card issuers offer to spend insights tools, where you can keep track of all your spending in one place. You can pick a particular date/ month/year, a customized period — and the tool shows you how much you’ve spent on your card in various categories and sub-categories. These are determined by the merchant/stores where you spent the money. For Example Malls, Online shopping, supermarkets, restaurants, etc.
Always make use of this tool, It can provide insight into where you’re spending more and where you might need to slow down on spending.
Tracking how much you put on a credit card isn’t as simple, especially if you’re just getting started with credit. Banks, however, allow you to set up balance alerts — notifications that let you know by text, email, or in-app message that your balance is approaching a certain level that you’ve set.
You could also set an alert for when your balance approaches, say, $1000, or for an amount that equals 30% of your credit limit (the point at which a balance might start to ding your credit score. The best way to keep track of expenses & overspending is by creating a budget and sticking to the budget and most importantly evaluating every month.