Why Do Credit Cards Have a Bad Reputation?

Depending on who you listen to, credit cards are either a huge burden or a huge blessing. The reality is, what type of tool it is depends on you, it can help you achieve your financial goals or destroy your plans. We take a look at a few reasons why credit cards have a bad reputation.

High Interest Rates

High interest rates are one of the main reasons that credit cards seem so horrible. Depending on the profile and history of the individual applying for the card, you could get favorable terms or end up with an absurd interest rate.

It makes sense to check out a few different types of cards from a few different banks and compare them before making a decision to go with one versus the other. This will help you understand the market and ultimately get the best deal possible. Luckily for you, bayzat makes it fast and easy to start comparing the different credit cards in Dubai or the UAE.

Non-Rewarding Rewards Programs

If you ultimately allow your balance to carry over to the following month, the rewards programs do not really reward you anymore. The reason is that credit cards with rewards points, cashback or airmiles carry a higher interest rate than cards with no rewards program. The key to benefiting from rewards is to always spend at a level where you are able to pay off the balance at the end of the month. Understanding the annual fees are also important, especially since banks can change these at any time.

Burying Yourself in Debt

The problem with credit cards is that you never really feel the impact of the transaction because you are not paying with cash. This makes it quite easy to overspend and lose track of your financial situation.

Couple that with the notion that it is easier to only make the minimum monthly payment, as opposed to paying off the entire balance when possible, and you are quickly drowning in debt faster than you can realize it.

To avoid potentially burying yourself in debt, pay more than the minimum every month, and if possible, pay off the entire amount.


Credit cards are convenient to have especially if pay day is two Fridays away and you really want to buy that new toy? The best way to combat this is to leave your credit cards at home and only use them for necessity. As a general rule, when spending, make sure you have dirham for dirham the same amount as you have spent in order to cover expenses at the end of the month.

Overall, borrowing can be a very helpful financial tool for short-term cash management. But if used incorrectly, it can bury you financially for a long time. Planning and resisting the sudden urge to splurge are the most important parts of owning a credit card.

Related articles:

The Best Credit Cards for Skywards Miles

Credit Card Interest Rates Around the World

Top Credit Card Fees You Should Know About