Choose cards wisely if you want to buy on credit

Dubai : Credit cards are probably some of the most important inventions in the world of personal finance.

In the UAE, about 59 per cent of residents own credit cards. Figures show that the usage of credit cards in the country is very high.

Convenience, however, comes at a price. Interest rates on credit card balances in the UAE have been on the rise.

"A number of banks have increased their interest rates [on credit card balances] since the beginning of 2008," says Zaid Kamhawi, chief business officer of Emcredit, a government-backed credit bureau.

Consumers often find themselves swamped with so many credit card offers that it can be daunting to decide which product to choose. Before deciding, you should go through the fine print, and examine your spending habits and capacity to pay.

Since using a credit card is a form of borrowing, you need to look closely at all charges involved.