What you need to know before choosing a credit card in Qatar

A credit card can be very useful tool in your financial arsenal. It is a great asset to have if you need to track spending and manage your money on a monthly basis. However, credit cards can also lead to fiscal ruin if used improperly. 

Most people applying for a credit card tend to view it as free money and end up amassing huge debt that can be difficult to pay off.  Such cautionary tales can be avoided with proper planning, fiscal discipline and knowledge before applying.  

If you’re considering applying for a credit card in Qatar, the first thing that you should determine is, what would you like to get from the card?  Are you looking for a credit card that will help you minimize debt, manage money, earn reward points or offers travel benefits?

Once you’ve determined your need, you should then consider the following:

- How will you use the card? – If you’re using the card to manage debt and will carry a balance from month to month then you should consider a card with a low interest rate.  If you intend to pay off the balance in full every month then the interest rate is of lesser importance and you should consider a card with a longer grace period to avoid hefty finance charges.

- Will the card be your main card for all purchases? – If you intend to use the card for everyday spending then you should go for a card with a high spending limit and rewards program that incentivizes you for every purchase. If the card will be used for emergencies only, go for a card with low fees and a low interest rate.

- Do you know the terms and conditions? – Credit limit, interest rate and fees and penalties are all credit card terms that you should be familiar with before getting a credit card.

Credit Limit is the total funds that the card issuer will make available to you for spending. If you should ever spend above the allotted amount you will be subject to fees and penalties so always be mindful of your cards limit.

Interest Rate is the percentage rate that the card issuer will charge you for making purchases on your card. Usually expressed as APR or Annual Percentage Rate, this number can be a fixed figure that never changes or a variable figure that fluctuates.  The rate on fixed rate cards can also fluctuate if certain conditions like going over your limit and late payment are breached.

Fees and Penalties are charges that the card issuer makes against your card for having the card, violating the usage agreement, making certain transactions such as balance transfers or requesting cash advances against your card.

Commercial Bank of Qatar has a variety of cards to help you manage your finances. Compare their selection of cards and find one that best fits you.

This post is brought to you by Commercial Bank of Qatar