Simplest Ways to make best out of Credit Cards!

By Sakshi Srivastav - 24 May 2021 Last Updated: 21 Oct 2021
Simplest Ways to make best out of Credit Cards!

Besides being an important tool for purchases, rewards credit cards make it easy for the owners to get something valuable in return for frequent usage.Cardholders regard it as extremely important because they can gain rewards by collecting points. To draw new customers while serving existing ones, most providers provide and reward credit cards. Cash back, air miles, and deals on other exclusive products are also possible incentives. Because of the many advantages, people will still be drawn closer to these incentives. Before you choose the right rewards card, keep in mind that these rewards are not available for random giveaways. Your ability to gain more reward points is determined by your willingness to spend more often.

Launching a profitable rewards programme is one of the most widely used marketing techniques in the banking industry in the United Arab Emirates. These programmes also encourage consumers to use their bank's debit and credit cards, as well as other banking services.

Cash back and travel credit cards are the most popular types of offers & rewards offered by the usage of the credit card. The former reimburses you a percentage of any transaction you make. The latter rewards you with miles or points for using your card and spending money on travel; points can be redeemed for free flights, hotel stays, and other items. When it comes to deciding between these two forms, there is no one-size-fits-all solution. It all depends on how you spend your money and what benefits you like the most. Choosing the right rewards card is primarily a matter of personal taste.

Let’s talk about Travel Card and Rewards offered

Some travel cards provide a lot of versatility, allowing you to redeem special privilege points for any travel purpose, such as any seat on any flight or any preferred space in any hotel. Other cards can operate on an affiliation model, providing exclusive deals with a specific hotel or airline. In that case, their points can only be used for that particular brand (although the level of perks is significantly higher than the generally-used cards). When it comes to getting your travel needs met, either a quick, casual trip with friends or family vacations, either type of travel reward card will suffice. It is entirely up to you to decide which credit card offers the best rewards.

Spending on any of these cards will earn you rewards in the form of cash back or points that can be redeemed at hotels, stores, and airlines, among other places. If you pay your bills on a regular basis and are debt-free, you might be eligible for a reward from the issuer. Reward cards will help you earn large sums of money simply by carrying out routine transactions. Isn't that a great idea? It is human nature to want to be rewarded in exchange for something. However, unless you are astute and vigilant, you can blunder badly, as there are some critical loopholes to be aware of when it comes to rewards cards.

Air Miles Credit Card

For those who fly on a regular basis, air mile incentives are a godsend. Each Dirham spent on these credit cards earns you points or miles. These can be used for things other than flying, such as car rentals and cruises, in the future. Because of the simplicity with which these cards offer discounts, vacations and business trips become a breeze.

Shopping Card& Rewards offered

If you're prone to getting carried away when shopping, rewards credit cards seem to be a good fit. Don't get so wrapped up in shopping that you forget about your bills. If you don't break the habit of buying things you don't need, you'll just end up in more debt. So, before you go out and get the best rewards credit card, think about whether or not it would be useful to you. If you are a frequent flyer, you may want to get a credit card that helps you to earn travel points.

In this case, cash back is a refund or discount applied to your account balance. On a monthly or annual basis, the discount is applied to your balance. It's also worth considering using the cashback to pay off your remaining balance. As a result of the cashback, your remaining balance is reduced. In-store discounts are another form of incentive programme. As an incentive, some issuers can give special discounts if you spend a certain amount. Cardholders can take advantage of the discount by shopping at their favourite stores with reduced rates. The loyalty credit card provides special discounts and a large number of points that can be redeemed.

Things to Consider When Applying for a Credit Card

When applying for a credit card, think of the types of rewards plans that the lender provides. The majority of major credit card companies sell at least one card with such benefits. These benefits can be obtained in the form of cash back rewards or gift cards. As a bonus, several issuers sell frequent flyer miles. You can choose the type of reward that is most important to you and helps you live a healthier lifestyle.

Unfortunately, many customers are unaware of critical information that can help them maximise the value of their incentive programmes while avoiding crucial data. Some points to consider are mentioned below to help you think more clearly. Choose a reward credit card that complements your lifestyle. If you are a frequent flyer, for example, an air mile incentive programme could be beneficial. There are a few credit cards that give home improvement points if you want to renovate your home. Make it a habit to use your loyalty card to pay for items that you would otherwise pay with cash or another card. Using your card to pay for gas at a gas station is a good example of this.A majority of consumers either use a debit card or pay cash but they lose out on points they could otherwise earn.

Consider all the responsibilities that must be met on time, such as auto insurance, property taxes, energy bills, and homeowner’s insurance, to name a few. The majority of these costs can be paid with your credit card, allowing you to collect all of the bonus points per month. Regardless of which rewards and deals credit card you select, those are just a few ideas about how to use your card. You can use your credit card for monthly transactions and then pay off the dues every month to make these tips work for you without getting into any financial trouble. Your reward points will accumulate in this manner.

How do you make the most of your Reward card?

If you recognise the value and advantages of your loyalty card, you can make an extra effort to take advantage of the incentives in order to balance the costs and benefits. Find the following points to make sure you get the most out of your card:

  1. Always keep an eye out for welcome bonuses: You can earn a large number of points simply by signing up, so keep an eye out for the sign-up bonus. Some sign-up bonus loyalty cards will quickly earn you up to 10,000 points.
  2. Increase your reward points by shopping at the best stores and using your card to buy big-ticket pieces. Any time you make a purchase in a partner store, you can gain some good points.
  3. Using your reward credit cards to improve your quality of living at no additional expense is a fantastic choice. You should also read your credit card's terms and conditions since certain transactions may not be eligible for reward points.
  4. Often, be sure to read the fine print, such as the expiration dates for these award points and any point limits, so you don't lose track of your hard-earned points. If you're working with a monthly or annual budget, make sure your spending is spread out equally over the month. This will help you gain points for any purchase.
  5. And be aware of any expiry dates, if any, not only to reap the rewards of those points in a timely manner, but also to keep track of the points that are accumulating, as a good reward is only a few points away.
  6. Paying the bills on a monthly basis should still be a priority. Regardless of the credit card you use, this is a healthy habit to keep. Furthermore, you can pay off your balance before the end of each month's interest-free days.
  7. Each month, pay your bill in full. This is a good habit to have regardless of the credit card you use, but it's particularly important to pay off your balance before your interest-free days run out each month if you're about to face astronomically high rewards card interest rates.

What is the Best Credit Card for Rewards?

Keep these points in mind when looking for the right card:

Best Credit Card for Rewards

Conclusion

When you're looking for a new credit card, the features that come with it are what will draw your attention to it. You must be enticed by a variety of credit cards with varying rewards and rates of interest. Those with good credit are eligible for reward cards with no Annual Percentage Rate (APR).

A card that best defines your way of life should also be considered. Since it is a highly competitive market, there are a plethora of options to choose from. Thanks to their growing success, the market is often flooded with a variety of reward cards. With great choices, however, comes the convenience of comparing hundreds of deals and selecting the best of the bunch.

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Credit Card Related FAQ

Frequently Asked Questions

  • How to Apply for a Credit Card?

    You can apply for credit card online by visiting Dhanguard and selecting type of credit card as per your requirement. We will further assist you with the process and requirement as per your requirements.

  • What is the eligibility Criteria for Credit Card in UAE?

    According to the UAE Central Bank regulations, any individual should earn a minimum salary of AED 5,000 per month to be considered eligible for credit card. Also, the Debt Burden Ratio of the consumer should not exceed 50%, to be eligible for a credit card.

  • What is the late fees applicable on late payment for Credit Card?

    Late payment fees are charged by banks if the minimum payment due on a credit card is not received on or before the payment due date. It vary from bank to bank but is generally about AED 250 per month.

  • What is Sharia Compliant Credit Card?

    As per the Shariah law, some banks in the UAE offers Shariah Compliant Credit Cards. This type of Islamic credit card stringently follows shariah principles that charges profit rate instead of interest rate as Riba is sternly prohibited as per the Islamic law. Though, Shariah Islamic credit card works similarly like a traditional credit card but with minor difference in the offered benefits.

  • What are the features of Credit Card?

    The credit card has a fixed credit limit, grace period, annual percentage rate, annual fees and bifurcation in offered benefits.

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