The value of transactions using credit cards rose by more than 50 per cent to AED 109.6 billion in 2013, says an article published in The National in July 2014. Credit cards are of great use if you use them responsibly, while even a slight misuse can land you in heavy debt. Contrary to popular belief, you can gain much more with a credit card at hand than a debit card. Easy payment plans on credit cards with Emirates Islamic can help you shop interest free. Yes that’s rightright, interest free!
5 Things to Look For Before Choosing a Credit Card
Before you go shopping worry free, you must look for the following things while taking a credit card in the first place itself:-
- Spending Habits – You must ascertain the purpose that your credit card will serve. If you plan to pay out every month then the interest rate doesn’t affects your credit card bills as much. If your card is going to be your go-to option for most of your buy, look for a generous credit limit and a lucrative rewards program. On the other hand, if you are going to use your card only for emergencies, pick a card with low interest rate and low fees.
- Interest Rate – The interest rate charged on a credit card appears as the annual percentage rate. It can be either a fixed or a variable rate. There also Sharia’ah compliant credit cards that have zero per cent profit rate.
- Credit Limit – Credit limit could be affected by your credit history. If you have a not-so-impressive credit history then the lender might not be willing to lend a big amount. A credit limit that is just about enough to fulfil your needs is apt. This helps you to avoid overspending and also enables you to repay the credit amount with ease. Easy payment plans on credits cards that come with zero percent profit helps you to avoid exceeding the credit limit.
- Fees and Penalties – You must also take in to account the service fee charged by the bank as well penalties for late bill payment or exceeding your credit limit.
- Incentives – A credit card that offers rewards in the form of points, cash backs, zero profit rates on shopping is a welcome change from ones that churn out money from you. Credit card easy payment plan from Emirates Islamic lets you shop at listed brands on zero percent profit rate. The offer validity might differ from brand to brand.