CREDIT CARDS: BOON OR BURDEN FOR UAE USERS?

Credit card use often turns risky when viewed as a source of extra income, and not as a financial tool

- BY JUSTIN VARGHESE Your Money Editor

For residents of the UAE, credit cards are more than just a convenient way to pay — they are a tool that can either boost your financial health or trap you in debt. Used responsibly, they offer rewards, flexibility, and security. Mismanaged, they can lead to spiralling debt, penalties, and even legal consequences. Understanding how to navigate credit card use is essential for residents looking to make the most of their finances while avoiding common pitfalls.

Credit cards offer a range of advantages that go beyond simply letting you buy now and pay later.

BOOST YOUR CREDIT SCORE

One of the most important benefits of responsible credit card use is building a strong credit history with the Al Etihad Credit Bureau (AECB). Consistently paying your balance in full and on time demonstrates financial discipline. A positive credit history can make it easier to secure loans for a mortgage, car, or personal financing at more favourable interest rates. Over time, residents who maintain good credit card habits can enjoy better borrowing options, lower premiums, and enhanced financial flexibility.

EARN REWARDS AND PERKS

Many UAE credit cards come with rewards programs that can significantly enhance your lifestyle. Cashback on everyday purchases, air miles for frequent flyers, and reward points that can be redeemed for travel, dining, or retail purchases are common. Premium cards go a step further, offering benefits such as complimentary airport lounge access, valet parking, travel insurance, and exclusive discounts at luxury outlets. Choosing a card that aligns with your lifestyle can make every swipe work harder for you.

SECURITY AND PURCHASE PROTECTION