5 tips on using your credit card: according to Feed Mureed

This is part of a series of articles in collaboration with local content creators. This article was written in collaboration with Feed Mureed.

Odds are you have a credit card in your wallet. But maybe you’re currently using it as you would a debit card, and we wouldn’t blame you because debit and credit cards look almost identical. But you should know that credit cards possess some key differences, and knowing what they are can save you from making common financial mistakes.

A credit card is a payment card issued by banks to customers so they can borrow money to make purchases, with the agreement that they’ll pay back the money borrowed — plus any interest owed — at a later date. But keep in mind that credit cards’ maximum spending limits, interest rates, and payment plans may differ from one bank to another.

For this article, we’ve teamed up with none other than food and lifestyle content creator, Mureed of Feed Mureed, given that he has more than a few nuggets of wisdom to share based on his own experience with using Bank al Etihad credit cards.

Cash Vs. Cards

Sure, having paper bills you can see and feel may give you some sense of security, but what would you do if you accidentally lose them while out and about?

Don’t get us wrong. We know there may be times when you will be forced to use cash instead of other forms of payment. However, as Mureed suggests, it is better to reach for your card whenever you can. He says, “if you lose your cash, you cannot recover it. If you lose your card, you can easily freeze it and get another one.” Other than that you can also keep track of where you’ve spent your money, you won’t have to wonder anymore!

Make the most out of your card

If you’re in the mood to shop without breaking the bank, you have some options. You can either take advantage of cardholder discounts from hundreds of stores or easy payment plans!

Easy payment plans are a simple way to make big purchases today and pay later. You can pay the value of your purchase back in instalments with 0% interest over a period of time, anywhere from 12 to 24 months.

Just make sure to check which merchants accept this payment plan and when you’re about to pay, tell the salesperson and they’ll set it up on the machine.

Don’t get carried away

Great news, you qualify for a credit card. Now, you can upgrade your phone and buy round-trip plane tickets to Greece all at once, right? Wrong!

We know, we’ve just talked about the perks that credit cards offer, and we’re not taking any of it back. That said, it would be inadvisable to spend above your means. Know that if you can’t pay your outstanding balance in full, whatever remains will roll over to the next month and be subject to interest. So, for your financial wellbeing, remain vigilant over your credit card balance to know where you stand in debt.

Set up a standing order

If you tend to use and abuse your credit card, it’s best to set up a standing order. When you set this up, you’re ensuring that you’ll not forget to transfer money from one account to the other when it’s time to pay off your credit card.

Mureed recommends setting up these payments before the end of the month to make sure you have enough money to cover your credit card’s automatic payment. He says, “this will allow you to never be late on paying your minimum balance.”

We’re always here

Finally, if you’re interested in getting a credit card, but you’re still not sure which one is right for you, you can use our card comparison tool or contact our customer care team by phone or through live chat on our mobile app.