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How to Effectively Manage Credit Card Transactions during COVID-19

How to Effectively Manage Credit Card Transactions during COVID-19

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The impact of the COVID-19 pandemic is devastating, and it has made keeping up with monthly bills and payments a huge challenge. To ease the tension, banks and credit card companies have come up with offers & policies to provide financial relief to their customers.

If you have credit card debt and are finding it difficult to manage the payments during the coronavirus pandemic, this article will guide you on how you can manage your credit card bill payments. These Credit card companies in UAE are offering the following relief measures:

Most banks, financial institutions, and credit card companies are offering help during these uncertain times, but it can vary depending on the credit card issuer.

Here are some offers by UAE banks, you can check with your card issuer for offers other than these:

HSBC Bank: Customers who are stressed about making their credit card payments during COVID-19 pandemic can have a payment holiday for up to 3 months. HSBC credit card holders can delay their bill payments including the minimum payment for up to 3 months, but during this time interest will be incurred as usual on the outstanding balance and to all the new transactions made during the payment holiday period. However, the credit card limit will be reduced to AED 5,000. Once the payment holiday is over, the card holders will be expected to resume the payments.

Contact information to get help:

  • Write an email at contactus.me@hsbc.com
  • Call their help centre at 800 5233/ 800 4320/ 800 4420

Abu Dhabi Islamic Bank: ADIB has increased the temporary limit o ADIB cards and, they have also introduced 5% cashback on utility & grocery bills for 3 months. ADIB has been active & responsive to the needs of their customers. They have also come up with no cost instalments schemes for card expenditures for a period of 6 months.

Contact information to get help:

  • Contact their help centre at 600503033

First Abu Dhabi Bank (FAB): FAB is one of the largest banks in the UAE and has declared some COVID relief measures for its customers. FAB has decided to cover the interest charges of all the customers along with relief on fees as well as repayments since April 2021. The bank has also waived off FX fees on cancel hotels and airline bookings along with temporary 50 percent reduction on late payment fees for 3 months.

Contact information to get help:

  • Use the registered email id to seek help by writing to here2help@bankfab.com
  • Request help using their Mobile App

Abu Dhabi Commercial Bank (ADCB): ADCB has deferred payments up to 6 months for their customers along with other relief measures for people who fall under COVID- 19 Targeted Economic Support Scheme category.

Contact information to get help:
  • Write an email seeking help at contactus@adcb.com
  • Call the contact centre at 600 50 2030 or 600 56 2626 (Islamic Banking)

Standard Chartered Bank (SCB): SCB has reduced cash advance fee by 50% with zero percent interest rates on EMI and zero processing fee. If you have made travel bookings with your Standard Chartered Bank, you can get a refund. Card holders have to submit the below documents to avail the benefits of the bank:

  1. A letter from your employer stating that COVID-19 is the reason behind your termination.
  2. A document showing COVID-19 restrictions have affected repayments of your credit card bills.
  3. An attested letter from the Ministry of Health saying you were infected by COVID-19.
  4. Bank statement showing a loss of up to 20% monthly revenue of those who are self-employed.

Contact information to get help:

  • Write at covid.19relief@sc.com for help

Here are some tips to help you manage your credit card bills and help you survive in the uncertain times.

  • Set up a budget and stick to it to avoid late and excess payments.
  • Lower your non-essential expenses to reduce the burden of debt, managing a credit card is easy if you maintain your expenses.
  • If you have more than one credit card and are in a financial situation, try clearing the card by paying minimum dues on each card starting from the one with higher interest rates.
  • Avoid withdrawing cash from credit card to prevent high interest rates and high fees.
  • If you are shopping on monthly instalments try to opt for 0% EMI plan.
  • If you have higher interest rates on a bank you can transfer the balance to a card with lower interest rates to avoid hassle later.
  • To avoid credit card debt, decrease your expenses instead of increasing your credit limit.
To Conclude

If you have credit card from banks other than the ones we have mentioned then, please reach out to your banks and understand the benefits they are offering to provide you with a financial relief during COVID-19 pandemic. Follow and stay updated with the COVID-19 relief measures given by banks. We also strongly recommend that you check out our article on how credit cards can come in handy in such situations. Click here to find out more.

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Maintaining a Good Credit History: Some Helpful Tips and Strategies

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Whether you are seeking personal loans to pay off outstanding debt or simply want to obtain some new credit cards, one of the first things that lenders will do is check your credit history. Your credit score, as calculated by the AECB (Al Etihad Credit Bureau), is essentially a profile of your financial health. It is something that lenders in the UAE closely scrutinize before deciding to extend you credit.

Because of this, it is extremely important to maintain a good credit history. Doing so will make it much easier to get access to some of the best credit cards in the UAE today. Having a poor credit history, however, will make it much harder to accomplish your financial goals.

In this post, we want to share several important tips and strategies on how you can maintain a good credit history. Following some (or all) of these tips, you’ll drastically increase your chances of avoiding any unpleasant surprises and increase the chances of getting the loan or credit card that you desire.

Ways to Maintain Your Credit History

To start, one of the best ways to maintain your credit history is to pay your bills on time. It’s simple enough. If you are a borrower that doesn’t skip or delay payments, banks and other financial institutions will view you as more creditworthy. They will have the confidence that you will make your required payments for your  loans and credit cards, thereby extending you more credit than others. On the opposite side, making late payments not only costs you in interest or other penalties, but it hurts your credit score. From there, a lower credit score hurts your chances of qualifying for some of the best credit cards or future personal loans.

Along with paying your bills on time, seriously consider paying off your credit cards in full. This is a great tactic both for the health of your pocketbook and the health of your credit history. Paying off your balance in full helps you avoid interest payments, which can become substantial if you are solely paying the minimum required payment on your credit card. But not only that, paying off your entire balance, once again, shows financial institutions and the AECB that you are a responsible borrower. Your credit score will rise and you’ll be more likely to receive even more generous credit terms in the future.

So one significant part of maintaining your credit history is to be on top of your payments. But that said, another key area centers on credit utilization. By this, we mean responsibly using the credit that has been provided to you. Just because your credit card has a credit limit of Dh100,000, for instance, does not mean that you should draw upon all of that credit. Instead, the general rule of thumb is that you should use only 30 percent of that credit limit. While it isn’t the worst thing in the world if you go above that guideline, you should tread lightly. It may put you at greater risk of being unable to pay off your credit card in full.

Finally, don’t apply for loans that you don’t need. If you already have great credit, it is all too tempting to apply for a wide range of  loans. You may use those  loans to get a more luxurious car or to splurge on something for your home. Whatever item or experience that you want, it is much safer to fund it through your day-to-day savings and cash flow rather than a loan. Yes, it may take longer to find the funds to make the purchase. However, foregoing a loan that you don’t actually need minimizes the potential hit to your credit score. To put it another way, it is an investment in your long-term financial future.

Get Started Today

Obtaining and maintaining a good credit history is an ongoing task. That said, it is certainly doable. Following the tips and strategies above can help you fortify that credit history, allowing you to obtain the best credit cards and personal loans in the future. By staying disciplined and on top of your pending payments, you will be setting yourself up for continued financial success.

When and How to dispute a Credit Card transaction ?

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Credit Card transactions may be disputed due to reasons such as inaccurate or excessive charge, billing error, fraudulent transaction or even a quality complaint on goods purchased. Banks allow customers to dispute credit card transactions either by a click of a button online or by filling up a form post speaking with a customer service officer.

It is important to note that the process of dispute normally involves a detailed investigation from the bank. One must make sure there is a valid reason before a transaction is disputed.

There are quite a few parties involved in a credit card transaction. Customer, Card Issuer ( Bank which issues the card), Merchant ( Establishment where the goods or service was purchased), Merchant bank ( the bank which the merchant uses to process these transactions), Association ( Mastercard, Visa etc., who are payment networks) and finally the Law.

In general credit card disputes fall under one of the below categories:

  1. Fraudulent transaction
  2. Inaccurate transaction amount
  3. Customer Complaint pertaining to the goods or service.

The later two categories may require a dispute to be raised within 60 days of the transaction.

Let us look at what you need to do in case of any of the above scenarios.

Fraudulent Transaction

Credit card fraud is unfortunately a reality. Banks spend millions of dollars in strengthening anti-fraud mechanisms and systems, however fraud still happens. There are several types of credit card fraud and these can be disputed by directly contacting the banks. Few things to do when you realize that there are credit card transactions on your statement or your alerts which you are unable to verify:

  1. Do not panic.
  2. Check with your family members or your supplementary credit card holders if anyone made these transactions.
  3. Try calling the merchant to check if the transaction is genuine. Do discuss with the merchant and ensure that the transaction does not pertain to you before you move further.
  4. Once you are sure that these transactions are not made by you, contact your card issuer / bank’s customer service team and report the issue and block the card. Note- most of the banks have a direct channel on the IVR (Interactive Voice Recognition) to report your card lost. You will be directed to a customer service officer instantly.
  5. Banks generally block the suspected compromised cards to ensure that there are no fraudulent transactions.
  6. You might be transferred to a specific trained Anti-Fraud management unit who will gather specifics from you and advice on the course of action.

 

Billing Error or Inaccurate Transaction

Charges which are inaccurate (excessive or incorrect) can be disputed by directly calling your credit card issuer. There are dispute forms which are required to be filled in on such scenarios. Banks are liable to keep the customer posted periodically on the status of the dispute investigation till closure.

Based on the type of transaction banks may offer temporary credit back to your credit card and once the dispute is resolved, the credit would be adjusted accordingly. In most of the scenarios, the card issuer is liable to resolve the issue within two billing cycles. However, note that the banks may take up to 180 days for a resolution.

Irrespective of the dispute being active or closed, one should continue making payment dues on your credit card during this period in order to avoid any negative credit bureau reporting. If the dispute is in your favour, banks will credit back the disputed amount.

Dissatisfied service or a related customer complaint

There are instances when a specific service or product that you purchased is not as per the sale commitment causing dissatisfaction to the consumer. These transactions can be disputed with the issuer. Below are the steps to follow on such instances:

  1. Always ensure that the first step is to reach out to the merchant and ask for a refund based on the dissonance caused. In quite a few situations, merchants do provide a refund or would be able to clarify the purchase clauses etc., You may want to document an email or a letter to the merchant on the dissatisfaction documenting the actual concern.
  2. If step one is failed and you failed to receive assistance from the merchant, contact your card issuer and request for a dispute to be raised for the transaction. Please ensure you have the following documentation handy: Original Invoice copies; Charge slips and the complaint letter.
  3. You may be required to fill in dispute forms as per the banks policies. Most of the banks have the forms available online which you can download and send to them.
  4. Do not delay any payments on your credit card while the dispute is in process. This will ensure that your credit bureau history is not affected adversely.

 

Soulwallet is a personal finance aggregator in the UAE. Soulwallet has analysed various credit card features and rated them based on an apple to apple comparison. For more details visit us on www.Soulwallet.com.

 

Travel Credit Cards – What are They and What Makes Them Unique?

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UAE residents are among the top 5 spenders on travel as mentioned in a recent study conducted by Visa. There are several reasons why travel expenses form a significant part of a UAE resident’s spend –  an expat population of over 80%, tax free salaries, attractive holiday packages, proximity to several international tourist destinations, kids studying abroad are a few.

Travel credit cards are normally associated with those that earn airmiles on spends. Emirates Skywards and Etihad Guest miles are the most popular airmiles programs in the UAE and are offered as rewards on several credit cards issued by UAE banks. “Travel” credit cards have evolved over the years from a simple airmiles offering to a multitude of benefits bundled together. Today, any cards that offer the below travel related features can be classified as travel credit cards:

Rewards: Cards that earn rewards in the form of airmiles or any other type of rewards which which can be redeemed against free flight tickets & upgrades, hotel bookings and upgrades, car rentals and so on.

Convenience: Cards that offer complimentary access to airport lounges, complimentary airport drops or pickups (some of the cards offer these in other countries as well), free “Meet and Greet” facilities and so on. These features can potentially save the cardholder over a thousand dirhams if used wisely.

Leisure benefits: Hotel discounts, international golf memberships, shopping offers in international locations (outlet village shopping in Europe for example) and so on.

Travel related co-branding: These are travel cards associated with popular travel partners such as booking.com cards, Marriott Bonvoy programs and so on.

A few important tips in choosing and using travel credit cards-

  1. Non-AED transaction rates: This is an important aspect one need to be aware of. Banks charge a fee for transactions incurred on credit cards in non-AED currencies and these charges typically vary anywhere between 2% to 3.9%. In many cases these charges alone would reduce the potential benefits that can be earned from using the card. It is recommended that one reads the fine print on fees and charges to ensure that the rates are clear and understood. The ADCB Traveller credit card is an example of one that does not have a charge for non-AED transactions which is a unique benefit offered to cardholders.
  2. Understand the finer details of the features and benefits offered:
    • Complimentary airport drop and pick up is a useful travel feature offered by many banks. This feature alone has the potential to save you hundreds of dirhams each year depending on how often you travel. However, there are differences in various aspects such as a) the number of transfers in a year b) whether intercity transfers are offered c) if there is a minimum spend requirement to avail the offer d) if the airline ticket needs to be booked on the same credit card and so on.
    • Complimentary Airport Lounge Access: While most of the credit cards in UAE limit the number of free visits in a year, there are a few credit cards which have unlimited access for the primary as well as the supplementary card holders. Some credit cards (Visa Infinite for example) offer free access not only for the card holder but also for a guest. There are also differences in the specific airports and lounges where the offer is applicable so it is advisable to check these details before your trip.

You can find a detailed rating of features such as airport transfers, valet service, cinema offers,  golf benefits etc. on Soulwallet. Click here  to find out more.

Takeaway

Whether you are travelling to exotic locations (the fjords in Norway or Mount Fuji in Japan anyone?) or even just back home to your family, an ideal travel credit card can not only make your trip more pleasant and seamless but also save you valuable dirhams at the same time.

Take advantage of Soulwallet’s credit card comparison platform to make sure you make an informed decision and – safe travels!

 

How to Maximize Your Credit Card Rewards Earnings?

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Today’s consumers are inundated with a wide array of options for rewards credit cards. While this (almost) guarantees that you can find the perfect one for you, it also requires some research on your part to ensure that you are applying for a good fit.

One of the most significant reasons why people use credit cards is because of the potential rewards that they can earn. Most of the time, these rewards can be obtained through the same day-to-day purchases that you would already be making.

Read on to learn how you can maximize your credit card rewards earnings.

1. Compare credit cards

Before you decide on a credit card, make sure to utilize a credit card comparison site to ensure that you are selecting the right one for your needs and lifestyle. Different credit cards are created for different people, so if you want to maximize your credit card rewards earnings, it is essential that you find a card that is suited for you. If you are a frequent traveler, then you probably want to find a credit card that offers cash back or travel rewards as these are features that you will most likely be able to maximize.

When you utilize a credit card comparison site, you will be able to instantly discern the similarities and differences between the features and benefits of potential credit cards for which you qualify. For example, in the UAE, credit cards have a range of monthly salary requirements from AED 5,000 to premium  cards that necessitate a higher salary range.

2. Avoid high credit card fees

In order to maximize your credit card rewards earnings, you want to make sure you are avoiding high credit card fees. To do this, you need to make sure that you are prepared to use your credit card responsibly and pay off the bill each month – in full. If you pay your bill in full, on time, then you can avoid having to pay interest on each billing cycle.

If you are unable to pay off the bill in full one month, you still need to pay more than the minimum recommended amount. Otherwise, the credit card interest rates are going to increase significantly, and you are going to have to pay a lot more for your purchases. Keep in mind that late or missing payments can incur extra fees, such as penalties and late fees.

Also, take into account any annual fees, interest rates, balance transfer fees, and potential charges. All of these add up and need to be financed if you are going to receive any of the potential credit card rewards.

3. Consider flexible cards

Generally, travel and entertainment rewards cards are some of the most popular options (for obvious reasons). However, for some people, these cards can actually limit how rewards can be earned. What’s more, many of these credit cards place a cap on the number of rewards that you can collect. Therefore, it is highly recommended that you consider a flexible credit card.

Look for a credit card that permits you to earn cashback across a variety of categories that align with your purchasing habits. For example, the Citibank Cashback credit card includes all categories for earning cashback and offers excellent cashback on international purchases. Plus, unlike many other cards, this one has unlimited and automatic cashback. Other benefits include global airport lounge access, dining privileges and exclusive offers, travel inconvenience insurance, and supplementary cards.

4. Utilize digital tools

In this day and age, more and more banks offer digital tools that can significantly help you track your financial rewards, deals, and benefits. By opting for a credit card from a bank that provides online dashboards, you can efficiently see ways to maximize your rewards and the options for redeeming them. If you opt for a cash rewards card that has digital tools, then you can determine where you want to use your rewards.

What is more, if you are part of multiple rewards programs, then utilizing these digital tools can help you stay on top of it all. These digital tools grant you greater control over your finances. For example, you could choose an automatic redemption feature to make recurring contributions into your savings and investment accounts. This strategy helps you turn everyday spending into long-term financial success.

Final Thoughts

As there are so many credit cards available on the market, you must choose one that not only has the best offer, but also maximizes your credit card rewards earnings.

At SoulWallet, we pride ourselves in helping you find the best credit card for you. All that we require from you is that you tell us what you want, and then we will give you the options that you need. Together we make finding the right credit card easier, more convenient, and more rewarding.

Credit Cards in UAE

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Around 71 percent of affluent residents in the United Arab Emirates own more than one credit card as per the statement of a weekly report. The majority of the residents access credit cards while 64 percent of the public use them for a day- to -day purchases. Another 63 percent admitted using credit cards when traveling abroad.

When you pay with a credit card, you are effectively borrowing money from your bank or lender. Every month you receive a statement that lists all the transactions you have made, along with place, price and sometimes even details of the item.

When it comes to credit card balance transfers and savings in Dubai, it is always advisable to pay the full outstanding on your credit card each month to avoid unnecessary fees. Most banks offer a minimum promotion rate of 2.5 percent and up to 10 percent cash back on spends. The minimum salary requirement to apply for credit cards in the UAE is 5000 AED as per the rules and specification of the banks which may vary with higher or lesser salary rates depending on the lender. The facility of balance transfer is freely available for the first 6 months with a minimum of 2 percent processing fee. Banks offer foreign currency rates with a minimum of 2 percent based on the expenditure or purchases made. If you are a frequent traveller, you might want to make sure you apply for credit cards offering lower foreign currency rates. The annual fee on a credit card will be applicable on a yearly basis as a part of your statement. Some UAE banks advertise and state that they do not charge annually, but it is preferable to opt to pay the annual fees as it has many benefits to offer.

The Soul Wallet Savings Simulator is a financial tool developed to help customers understand which credit cards offer them the best opportunity to maximize their savings. This is done based on an analysis of the customer’s unique expenditure pattern both across the type of monthly and annual expenditure and also the amount spent on each category. The unique algorithms help you ascertain which credit cards offer you the maximum savings potential for your specific spend. This varies from individual to individual.

A frequent traveler will probably consider taking a credit card that offers air miles. However, if you don’t travel a lot but like to save on your transactions, you might prefer a credit card that gives you cash back. Also, cash back amounts could vary based on the total amount you spend in a month. Visa International, MasterCard and the different banks in the UAE offer additional benefits on premium cards, such as access to airport lounges globally, discounts on dining, valet parking, free golf, cinema discounts and other transport facility benefits. You can compare all the benefits on Classic, Silver, Gold, Platinum, Titanium, Infinite and World credit card benefits or choose to search for premium cards directly. Premium cards generally require a higher income or have a higher annual fee.