4 Credit Card Strategies-Simple Yet Effective-UAE-Dubai

4 Credit Card Strategies-Simple Yet Effective-UAE-Dubai

When it comes to credit cards, very few handle them strategically. Managing personal finances can be a mundane activity. Who wants to check account balances, tally them, check for errors, pay bills, review account activity???. Uff…too boring isn’t it. But this little effort to do the activities mentioned above can save you a lot of trouble in future. Our laziness and ignorance can put us in a financial crunch. To mitigate the effects of this, we might further damage our finances by using more credit cards and accumulate more credit card debt.

But you can make your credit card your best friend. If you stick to a few proven strategies, you can rest assured of never falling into a credit card debt spiral. Cutting to the chase, here are few credit card strategies to make the best use of credit card/cards in UAE.

4 Credit Card Strategies:

#1. Take Advantage Of Automatic Payments

If you are forgetful or do not want to bother with paying your credit card bills every month personally, automate them. Set up a separate account for you credit card payments and automate the payment as and when they becomes due. This way, you would never have to deal with neither credit card interest nor credit card debt. When you pay your credit card bill in full every month, you will have used your credit card for convenience than to fulfill your financial needs.

Ensure that the account that you nominate for automatic payments has enough deposits to handle your credit card bills. Having said this, do not be careless about the activities going on in your credit card account. Check your credit card statement every month. Ensure that all the charges are legitimate.

Automating credit card payments will ensure that you will never miss your credit card payments.

#2. Take Advantage Of Alert Facilities From Issuer

Alerts are one of the best features of credit cards provided by the credit card issuer. Depending on the bank which issued your credit card, alerts in the form of text messages and emails could be received for different activities pertaining to your credit card.

You can subscribe to alerts when you credit card is used or an alert, when a transaction is successful, when you credit limit is low or any other activity which is unwarranted.

#3. Pay Your Credit Card Bill Multiple Times

Well, when I say ‘pay multiple times‘ it doesn’t mean that you deposit money into your credit card account every time you use your credit card. That beats the whole purpose of owning a credit card. You might as well use cash. When I say ‘multiple times‘, maybe you can pay your credit card bill twice or thrice a billing cycle. This way, you will have enough amount to spend and you’ll never have to worry about maxing out your credit card.

#4. Don’t Own Too Many Credit Cards

We humans are forgetful and when it comes to credit card cards, forgetfulness can make you pay a heavy price. Whenever I go to a hypermarket in Dubai, I see people carrying at least 5-6 credit cards. They browse through their impressive collection of credit cards to make the payment. I wonder sometimes, how these people are keeping up with the account activities and bills of so many credit cards.

Missing a payment for any reason can be bad. It could affect your interest rates and also trigger other charges which otherwise wouldn’t have happened if you had to pay your credit card bill in time.

2-3 credit cards should suffice. Well, this may not be the ideal number but you can easily manage 3 credit cards for sure.

Conclusion:

These are simple strategies and they are so obvious but sometimes, we tend to take simple things for granted. This reminds me of a story of a truck getting stuck at the entrance of a tunnel because of its height. A little miscalculation led the truck driver to miss out on few inches of height. Experts and engineers were called to solve the problem. They neither wanted to damage the tunnel nor they wanted to scrap the truck. They made elaborate plans to solve the problem but everything went it vain. The traffic was piling up too. Then there was a this small kid passing by in his bicycle and he saw the situation. He suggested to deflate the tyres!!! Bam!!! Such a simple solution to such a complicated problem.

Well, this is just an analogy. You can make your life simple by following simple credit card strategies!

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