Cash back credit cards helps users get a percentage of their expenditure back, thus saving money that can be used for other purchases.
The use of credit cards has risen phenomenally among customers all over the world. Credit cards offer the chance to acquire new things, pay bills and make large purchases when personal reserves are low. As long as one is responsible about settling credit card bills on time every month, the use of credit cards can actually help one manage personal finances better.
Tapping into customers’ interest and inclination for using credit cards, banks in UAE have stepped up with excellent incentives to attract users to their credit cards. The most common incentive is to offer a free credit card – this is a card which does not have user fees or interest for up to a year of usage. After the first year is up, the credit card is treated like any other and is liable for the same fees as well.
In recent times, banks in the UAE have rolled out a new incentive for credit cards. They offer the cash back card, which ostensibly returns a percentage of the money spent on a purchase on completion of the transaction. However, the customer must note that:
Though reward points on purchases are also beneficial in their own way – you can redeem them for cash or a product at a later date – it is more beneficial to use cash back cards.
For one thing, cash back cards free up a percentage of your cash on spending. This cash is then available to you for spending on something else. Also, the benefit is seen at once, without having to wait to redeem it (unlike in reward point cards).
Besides, the reward point catalogue may not be very diverse, depending on your bank. Cash back cards, on the other hand, come with a no-strings-attached usage policy and is normally more beneficial for habitual big spenders.
The use of credit cards has risen phenomenally among customers all over the world. Credit cards offer the chance to acquire new things, pay bills and make large purchases when personal reserves are low. As long as one is responsible about settling credit card bills on time every month, the use of credit cards can actually help one manage personal finances better.
Tapping into customers’ interest and inclination for using credit cards, banks in UAE have stepped up with excellent incentives to attract users to their credit cards. The most common incentive is to offer a free credit card – this is a card which does not have user fees or interest for up to a year of usage. After the first year is up, the credit card is treated like any other and is liable for the same fees as well.
In recent times, banks in the UAE have rolled out a new incentive for credit cards. They offer the cash back card, which ostensibly returns a percentage of the money spent on a purchase on completion of the transaction. However, the customer must note that:
- The cash back card is applicable only for select categories of spends. Not every purchase will get a cash back option.
- Some product categories have a higher cash back than others. For instance, there may be higher cash back (up to 10%) on Du and Etisalat spends, whereas one may get up to 5% cash back on purchase of electronics.
- There are limits imposed on availing the cash back offer. For example, the cash back option applies only after a certain amount of Dirhams have been spent, such as Dh 2,000. For lower spends, a lower percentage of cash is returned.
Though reward points on purchases are also beneficial in their own way – you can redeem them for cash or a product at a later date – it is more beneficial to use cash back cards.
For one thing, cash back cards free up a percentage of your cash on spending. This cash is then available to you for spending on something else. Also, the benefit is seen at once, without having to wait to redeem it (unlike in reward point cards).
Besides, the reward point catalogue may not be very diverse, depending on your bank. Cash back cards, on the other hand, come with a no-strings-attached usage policy and is normally more beneficial for habitual big spenders.