So you’re new to the concept of credit, and in order to get a respectable credit line, you have to build credit first. This is the age-old, “what came first, the chicken or the egg?” question.We mean, how can you build credit if you don’t have any? The answer is simple, for your first few credit cards, focus on getting simple cards with lower credit limits and general rewards.
Don’t go too crazy. As your credit builds, you’ll be able to expand your portfolio toward more luxurious credit card offers and accounts.
No-fee credit cards
For first time cards, you should be focusing on standard credit cards that don’t have a lot of terms and conditions to follow or extreme rewards to look forward to. This gives you a chance to learn more about credit card usage as you go and gives you something to move forward toward.
The ideal starter credit card is the FAB Standard Credit Card. This is a no-fuss card that offers great benefits and learning experience. The standard card includes the option for higher increased credit limits, it is free for life and offers a few travel and lifestyle perks. Card members can enjoy elevated customer service when purchasing air tickets using their Standard Credit Card, complimentary airport lounge access and up to five percent cash back with no minimum spend requirements.
You can also opt for a Gold Card, which is also free for life. The Gold Credit Card offers up to 55 days interest-free billing, and it also offers one of the more protection-oriented benefits packages. Card members receive complimentary international medical and travel assistance, home contents insurance for just AED 25 per month, and Credit Shield Plus. The latter is protection in the event you can’t meet your minimum payments.
Standard credit cards
Standard credit cards are those that are no-fuss cards with basic benefits and terms and conditions. They make the best first-time credit cards and help you build credit easily.
Mashreq Bank has an array of credit card offers, but their Smart Saver credit card is really a smart option for those looking to build credit. Like the ones above, it is free for life, and it offers a few travel benefits. With this card, you get complimentary travel insurance, up to eight percent cashback at 450 Smart Saver merchant partners, and one percent cashback on international purchases/5 percent on local purchases. It’s a simple card with simple benefits. Upon application, if approved, new
Alternatively, the UNB Classic Card also offers a no-fee membership with more benefits than the previous card. It offers free online and mobile banking, Instalment plans of up to 12 months for purchases at leading UAE outlets and 50% movie cashback as UNB miles.
Overall, the idea to stick to for first time cards is simple benefits, simple cards, simple usage. Always remember to pay more than your minimum balance to pay off your debt faster. Only purchase what you can afford on credit. Finally, use your credit card to pay for larger purchases you can pay off over time vs using it for many small purchases you can use the cash for.