Credit cards are convenient substitute for cash and essential component of electronic commerce and internet commerce.
A credit card is a plastic card with a magnetic stripe that holds a machine readable code issued by bank allowing the card holder to purchase goods or services on credit.
The card issuer (usually a bank) creates a revolving account and grants a line of credit to the cardholder, from which the card holder can borrow money for payment to a merchant or as a cash advance. As long as you pay back the money you borrowed within the “grace period”, you don’t have to pay extra. If you don’t pay it back in that time period, you’ll have to pay interest — a percentage of the money you owe the bank — on top of what you borrowed.
Eligibility Criteria for Applying Credit Card
Loan Applicant should be at least 22 years old.
Minimum Vintage of the applicant should be 0-6 months in UAE.
Minimum Salary requirement should be AED 4,500-5,000.
Benefits of having a credit card:
Credit cards can save you time and trouble–no searching for an ATM or keeping cash on-hand. If you are making a large purchase, it can be convenient to use a credit card. Like purchasing of gold, Electronics goods, card to card money transfer, cashback on retail purchase/fuel, movie tickets, air miles/skywards point, quick cash facility.(convert all purchases into installment plans)
• If you are travelling abroad/overseas, then having a credit card can be a safer way to travel & make purchases. Not all debit/ATM cards are universally accepted, whereas credit cards have near-universal acceptance around the world.
Building Credit Score.
If you have no credit bureau or trying to improve your credit score, using a credit card responsibly will help your credit score because credit card institution will update your paying behavior to the credit bureau.