Struggling with credit card spending? Low-limit cards could be your best ally

Dubai: Whether it’s for emergency expenses, travel rewards, or simply to build a credit history, getting your first credit card is a financial milestone. But have you ever wondered why those first credit cards come with a lower-than-usual credit limit?

Financial experts say it’s a deliberate strategy to help you learn responsible spending habits before giving you access to larger sums. “Paying off your credit card dues each billing cycle is a habit that takes time to develop,” explains Essam Kabeelali, a UAE-based consumer credit advisor.

“If you max out your low credit limit every month, you risk developing a high ‘credit utilisation’ pattern, which can make it harder to manage future debts.”

Recovering from debt? Low-limit card can help

After years of struggling with mounting debt, imagine finally becoming debt-free. You have extra cash and a better credit score—but does this mean avoiding credit cards altogether?

“You may be hesitant to use credit cards again for fear of falling back into a debt spiral,” says Kabeelali. “But completely avoiding them isn’t necessary. A starter card with a low limit can be a great way to ease back in, helping you regain financial confidence while keeping risks in check.”

A previous struggle with high-interest debt shouldn’t stop you from using credit wisely. If you’ve paid off your debt, you’ve likely developed better discipline and spending habits. But even so, cautious steps are necessary to prevent another financial misstep.

How to ease back into credit card use without risk

According to Rupesh Naish, another debt advisor in Dubai, there are three golden rules for safely resuming credit card use with a lower-limit card:

1. Review spending frequently and make multiple payments

“Check your spending at least weekly to ensure old habits aren’t creeping back,” advises Naish. “Making more than one payment per month can also help manage your balance and prevent overspending.”

2.  Use credit cards only for fixed bills

This ensures predictable spending and prevents impulse purchases. “Pay recurring bills like utilities and subscriptions with your card, then set up automatic payments to clear the balance monthly,” he adds.

3. Hold off on using credit cards for rewards if unsure

While cashback and travel points are tempting, they can lead to unnecessary spending. “Make sure you’re spending within your budget before focusing on rewards,” says Kabeelali.

Making low-limit credit cards work for you

A low-limit credit card can still be part of your monthly financial plan. Kabeelali suggests treating it like cash: “Only charge what you can pay off in full each month. If you don’t track it, credit card debt can pile up quickly.”

For those who want a gradual return to credit, Naish recommends using a low-limit card exclusively for monthly bills. “This way, you earn points while maintaining financial discipline,” he explains.

“For example, if a recurring bill is Dh1,000 per month, set up an automatic payment from your savings account to clear it. This allows you to maximize rewards while keeping spending under control.”

Final thoughts: Tread carefully, even with a low-limit card

While low-limit credit cards can be a useful tool, they still require responsible use. “Just because your spending is capped doesn’t mean you aren’t borrowing money,” warns Kabeelali. “If you’re not ready for the responsibility, take your time before jumping back into credit use.”

There’s always a risk, even with a small credit limit. “Earning 2% cashback on purchases sounds great, but not if you’re paying 24% interest for years,” Naish adds. “The key is to manage credit responsibly—whether you’re rebuilding financial stability or starting fresh.”

Ultimately, while credit card rewards can be enticing, the risks of debt should always be a priority. “There’s nothing wrong with skipping credit altogether if it feels overwhelming,” says Naish. “At the end of the day, financial security matters more than a few rewards points.”