Choosing a credit card isn’t a one size fits all shopping expedition. Neither is it a question of bank loyalty. When all is said and done, the only information that really counts are the numbers. When deciding on a credit card, not only do the numbers need to add up in a way that is favourable to you but you also need to take into account the right kind.
Choosing the right credit card
Consider these numbers before you zero in on the perfect card for you.
- Lower rate of interest
This is the most defining number when it comes to choosing a credit card. It is imperative that you shop around and look for the card that offers the lowest rate of interest. Make sure you find out the APR (Annual Percentage rate of Charge). This is the rate of interest along with any fees that you would pay over the course of the year. Some credit cards offer you a lower APR at the outset and then later increase this amount as the time progresses. So ensure that you are aware at which point it is likely to increase so that you can take full advantage of the lowered APR while it lasts.
If you are looking for a card with a lower APR then Noor Bank’s Classic Credit just might work for you.
- Cash Back
The best kind of numbers are those that are imprinted on crisp notes. Cash back credit cards are a great way to save money, earn rewards and make the most of your purchases. They are preferable for those who are likely to pay off the full balance on the card each month. The only caveat with cash back cards is that they are more likely to have higher APRs or annual fees. In this case, do a little bit of number crunching to ensure that the fees are offset by the rewards you are earning.
You can earn up to 3% cashback on both domestic and international purchases with RAKBANK Titanium Credit Cards. With no annual fees and a lower rate of interest they are ideal for who want their money to work for them.
- Balance Transfer
If simplifying your loan repayment process is at the top of your to-do list then Balance Transfer credit cards are a nifty option. They allow you to transfer all your outstanding credit card debt into one credit card making repayment easier. An added bonus is that many banks will provide a lower interest rate for an initial stipulated period of time, allowing you to make the most of the credit card enabling you to save a fair amount. Do make a careful note as to how long the introductory APR will last. If you are unable to pay back the entire amount by the end of this time period, then ensure that the increased APR is still low enough that you can save some money using the Balance Transfer card. Using a Balance Transfer credit card is all about minimising your repayment amount as much as possible and you need to do some serious number crunching to ensure that it is worth your while.
Consider a card like the CBD Gold MasterCard as it offers balance transfer facilities along with a low APR that means you can make big savings on your outstanding debt. For a lower salary bracket consider the ADIB Cashback Visa Platinum Card which has no annual fee.
- Travel Wise
If you are a jet-setter, then a Travel credit card works in your favour. It allows you to capitalise on all your travel expenditure with air miles, points, free stays, travel upgrades and more. As a frequent flyer you can make it to your first free flight pretty quickly with added sign-up bonus miles and other rewards. A word of caution; don’t get distracted by a high sign-up bonus, the metrics that matter here are the long term reward rates.
If you’re looking for just one such card, ADCB’s Classic Card offers you privileges on Emirates Skywards and Etihad Guest. Get your own ADCB credit card and travel the world!
Shop around for the credit card that fits you like a glove. Like any other service, a credit card is designed to offer you value for your money, but it is up to you determine just how much value you gain from the card. Do your research, compare the numbers and complete a thorough analysis using our Compare Credit Cards feature to find the perfect card for you.
