Credit Cards

A credit limit refers to the highest amount of credit that a borrower can obtain from a lender or financial institution. Several factors, such as the borrower's credit score, income, debt-to-income ratio, and credit history, are taken into account when determining credit limits.

In the UAE, you have the option to withdraw cash using your credit card, commonly referred to as a cash advance. However, cash advances usually come with higher fees and interest rates compared to regular credit card purchases. To obtain cash using your credit card, you can visit an ATM that accepts your card and enter your credit card and PIN, just like you would with a debit card. It is important to note that most credit card issuers impose a cash advance fee, which is usually a percentage of the amount withdrawn. Moreover, interest on cash advances usually begins accruing immediately, unlike regular credit card purchases where you have an interest-free period if you pay your balances in full each month. It is generally advisable to use cash advances only in emergency situations, as the fees and interest rates can accumulate rapidly. If you require cash, it is generally better to withdraw from your checking or savings account using a debit card.

The initial and crucial step is to prioritize your expenses. Here are some additional pointers to consider:

• - Compile a list of all outstanding debts that require payment
• - Begin by paying off the credit card balance with the lowest amount
• - Obtain a credit card with a low annual percentage rate (APR)
• - Convert your outstanding bills into EMIs
• - Ensure to make timely payments towards your bills on a consistent basis

Converting cash withdrawals into installment plans is not feasible, as this option is only available for specific purchases.