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Frequently Asked Questions

How to select the best credit card?

An excellent credit card can be essential to your financial freedom. The best credit cards offer a wide variety of rewards, perks and even bonuses that can help you save money. But which is the right one for you? Understanding how to select the best credit card will help guide you through all of this.

Selecting the right credit card can be challenging. There are tons of types, features and fees to consider. So what is the best credit card for your individual needs?

If you need a card for everyday purchases, you’ll want to find the right balance between annual fees and rewards. Premium cards with high limits and generous sign-up bonuses might be best for people with high-interest debt. If you’re planning on traveling regularly or eating out, consider a card that offers no foreign transaction fees so there are no surprises on your statement.

Choosing a credit card can be overwhelming, especially when you’re trying to decide between rewards, cash back and travel. But it doesn’t have to be as tough as it seems. Use this guide to get some insight on which type of credit card is best for your needs.

For many people, a credit card is their first step down the path to owning a home, or starting a business. But not all cards are created equal. Selecting the right one can save you interest and help you establish credit history, but even choosing a card that’s too good can end up costing you in the long run.

Finding the right credit card is all about finding the one that best fits your budget, lifestyle and use cases. You’ll need to consider: Whether you plan on using the card for everyday purchases or just traveling; How long you’ll have the card; The rewards you can earn or redeem; Any fees associated with the card.

Credit cards can be a great way to build credit, earn rewards, and avoid interest payments. However, you should be careful of high-interest rates and late payment fees.

How to maintain a good credit score?

How to maintain a good credit score is one of the most important things you can do for your financial future. A good credit score makes it easier to apply for loans and helps you qualify for better rates. If you have bad debt to pay off, start working on improving it by making on time payments, keeping accounts open and avoiding new credit cards or loans.

A good credit score can help you find the best rates on anything from a mortgage to credit cards. Here are some tips for maintaining a good credit score and improving your chances of getting the best loan deals.

Maintaining a good credit score can be challenging, but there are some steps you can take to get started. Make sure you have a complete picture of your credit report, including the date it was created and when it was last updated. Review each part of your report carefully and make sure the information listed is what you expect and accurate. If you find any mistakes, dispute them with the reporting agency immediately. Avoid making late payments or carrying high balances on your credit cards since both practices will negatively affect your score. The bottom line is to maintain a long-term financial plan that takes into consideration all financial factors, including building a positive credit history!

If you want to maintain a good credit score, you need to be sure that any negative information on your credit report is accurate and that you are taking the right steps to improve it.

Having a high credit score can open doors for you. It can help qualify you for insurance premiums and interest rates, increase your access to financial products and services, and make it easier for you to qualify for a loan, mortgage or credit card.

What is the difference between a secured and unsecured loan?

Difference between a secured and unsecured loan: While a secured loan for purchase of a home, vehicle or other asset would be considered an asset-based loan with the relevant asset acting as collateral, an unsecured or personal loan is one where there is no collateral provided by the borrower.

Secured and unsecured loans differ in the way they are repaid. Secured loans usually have a lower interest rate than unsecured loans, but you may need to pay an upfront fee before you can take out a secured loan. Secured loans are backed by collateral, such as real estate or a vehicle, and the lender takes ownership of the collateral if you fail to repay your debt. They should be your first choice if you have good credit and sufficient collateral. Unsecured loans are based solely on how much money you can afford to repay each month. Unlike secured loans, they do not require collateral.

What is Expense to salary ratio ?

The expense to salary ratio is used by lenders and credit companies to gauge whether or not you are spending within your means. This ratio compares your monthly expenses against your monthly gross income.

Expense to salary ratio is the amount of your monthly expenses compared to your monthly income. It can be calculated by dividing the total amount of your expenditures by your monthly income. For example, if you make AED 4,000 per month and spend AED 1,500 per month on average for living expenses, then the expense-to-salary ratio is 33 percent (without any debt repayment). This means that you spend 33 percent of your net income buying new clothes, eating out and other expenses.

How do high interest rate affect my savings and life style?

Interest rates are used to determine the amount of money you will pay off on a loan or credit card. Total Interest is the sum of interest paid on the principal (amount borrowed) and charged for the period of the loan. If you’re paying more interest than what you earn on your savings, then you will be losing money. Unfortunately, most of us do not realize that high-interest debt can rapidly destroy our financial future until it is too late. Recent studies show that people with high interest debts often struggle to pay off the minimum monthly payments on their consumer debt. They might make one or two payments on a credit card, then suddenly find themselves in serious financial trouble when their car breaks down or they have an unexpected medical expense. This is because they never take a step back and actually look at how interest accumulates over time.

What is a good credit score to get a loan in UAE?

A credit score can be anything above 700 is a good score.

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