Your First Credit Card? Here are Some Smart Ways to Use It
Your First Credit Card? Here are Some Smart Ways to Use It
Choosing your first credit card can be very intimidating
with the numerous options available in the market. But getting your first
credit card is a milestone achieved, as you are one step into financial
independency. However, it is still important to use your card wisely as it will
build your credibility and when in future you would require a loan, this credibility
will help.
Here are some tips to use your card wisely:
1. Budgeting
Managing your spends is extremely important
when it comes to credit cards, as you pay interest on the money you borrow. Credit
cards present us with great pay back options even when we don’t have the money
in the present, but this often leads to overspending, which impacts your credit
score. Hence, having a clear breakdown of your budget is extremely important
before spending with your credit card.
2. Rewards and cashbacks
Credit cards pack many rewards, cashbacks,
discounts and benefits. Do your research on the rewards and points structure,
this way you can make the most out of it. Read more about your Emirates
NBD credit card rewards.
3. Lifestyle
Choosing the right card is important,
as you shouldn’t get a card for the welcome bonus or early bird bonus. Get a
card which matches your lifestyle, sometimes you may not require a card which
extremely high end, a simple credit card with benefits suiting your needs might
be the best for you.
4. Cash withdrawals
Cash withdrawals are an extraordinary
benefit with credit cards. However, this comes with a charge of the withdrawal
and since the money withdrawn is borrowed there’s an interest levied on it. Be
mindful and use this only in emergency situations.
Use these tips to build a good
credit score. This will also grant you more rewards and faster approvals
from lenders in future.
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