How to Be a Good Payer in Dubai?

Businesses often use credit cards in the same ways that people do in their personal lives. This is not necessarily a bad thing. Credit cards are unsecured loans as per debt collection UAE agencies.

Meaning you do not have to put down collateral to use the money. Putting your purchases, and those of your employees, on a corporate credit card. Just like personal credit cards, corporate credit cards often help you earn points or cashback.

Things to Know

Below are the things to know about credit card limit.

·         Be a Good Customer

Using your cards responsibly, paying on time, and keeping your utilization rate under 30% all help to show you are a lower risk. Doing this typically keeps companies from lowering your limit. Occasionally, credit card companies will also lower your limit because you are not using the card.

If this happens, you can often appeal the decision. However, in a bad economy, companies sometimes lower limits no matter what you do.

·         Know the Limit

Even if you are not planning on using your credit card, the credit limit matters. Your credit utilization rate is a key factor in determining your credit score. The utilization rate is how much you owe versus your total credit limit on all cards.

The credit card company can change your credit limit at any point. However, the card company can’t charge you a fee for being over the credit limit for the first 45 days after changing your limit. If they lower your limit, pay down your balance to be under the new limit as suggested by debt collection UAE agencies.

·         Don't Take Out New Cards

If you want to keep your credit utilization rate low and you receive a lower credit card limit, you may be tempted to apply for a new card. However, this is not necessarily a great idea. Every time you apply for credit, it creates an inquiry on your credit report.

If there are a lot of inquiries on your credit report, that’s a negative factor in your credit score. Remember, your credit score is just as important as how much credit you have available. If you decide to apply for a new card, pick one to pursue and talk to them before you formally apply.

To Finalize

Therefore, if you want to know about your credit card limit it is all here. Debt collection UAE agencies have marked these things important regarding the credit card limit. They are available all over the UAE.

They provide their services in Ajman, Sharjah, and Fujairah as well.