As the world is dealing with the coronavirus pandemic and our health and welfare are at top priorities, we have to be concerned about how Covid-19 is affecting your Credit Score and overall financial situation.
Plan now to ensure you are in the best financial place you can possibly be, we encourage you to be proactive in monitoring your credit card debt to stay on top of your personal finances.
A credit card is an essential tool, one that should be handled with extreme caution. You must know how to utilize your Credit during the COVID-19 outbreak to make the most out of your credit card and not get into trouble.
These are the 10 tips to manage your credit cards for good.
Find out about the relief measures your banks are offering!
Many banks across the UAE have offered several relief measures for customers during the lockdown. They have offered payment holiday periods, Discounted fees, and interest-free payments offers. Make sure you avail of these offers. MoneyMall has listed major relief measures offered by UAE Banks here :
Make a budget and plan ahead:
Start by setting a budget for yourself and stick to it. Chalk out a plan that contains your income, your regular expenses, and monthly payments that you have. Make sure you pursue the most efficient path for yourself.
Do not increase your credit line limit:
Increasing your credit limit on existing cards or getting a new line of credit during the lockdown will make you susceptible to falling into a mountain of debt. Make sure you reduce your expenses, not increase them.
Do not withdraw cash from Credit Card:
It is possible that you are facing a cash crunch, But Credit Card Cash withdrawal have to be the last option, It has very high-interest rates & fees.
Check for 0% EMI options:
buy Essentials from a Merchant who offers 0% EMI offer on your card, plan your budget and shopping according to match minimum transection amount requirement, Call your bank and covert the Transection in 0% Easy Payment Plans.
Transfer your balance to another bank :
Many banks in UAE are offering various benefits like 0% of Balance Transfer for new customer, if you have an outstanding and paying high monthly interest on an existing credit card then apply for a new credit card and have the outstanding balance converted to 0% or low-interest rates Installments. Checkout Best Credit Card in UAE on MoneyMall.
Check your credit score regularly:
Especially now, making sure your credit score and reports are accurate is critical. This way, you can be top of your credit and avail the Finance facilities when it's needed most.
Contact your Bank or Card providers:
If you don't think you can pay your credit card dues on time or you got stuck in a financial crisis, reach out to your bank or providers to see if they offer flexible payment options during this time.
Use mobile banking app:
Now is the best time to familiarize yourself with your credit card or bank’s mobile app. Bank and Card issuers are making sure more and more people use mobile banking. Make yourself useful to it. So, that social distancing is ensured.
Utilize Contactless Credit Card payments:
As we know COVID-19 spreads through touch, it’s the right time you start making the contactless payment only. Check for the wifi icon on your credit card, if you don’t have Contactless card, call your bank and have a replacement.