Is your credit card buying you free holidays or deals?

Make your wallet a workhorse by choosing credit and loyalty cards that suit your spending patterns and allow money to make its way back into your pocket

Who doesn't love getting a tad extra on every purchase? Whether it is through cashback or reward points, we all love return benefits every time a dime is shelled out of our pockets. However, if you still believe in the dictum, 'cash is king', then statistically you are leaving as much as 6 per cent of your household budget at the cashier till each month, suggest industry experts.
Paying cash robs you off the extra benefits that can otherwise be accrued through cashback or reward cards. By channelising your spending through right accounts, you can get some significant rebates.
Track your spending
So here's the thing, you do not have to sign up for any and every card that comes your way. Instead, observe your spending pattern, explore and learn which deals are worth cracking. Once you know the favourite streams for your money, you will be able to budget better too.
How to make the best use?
Grocery: If you buy groceries from a particular supermarket each month, check if it has tied up with a credit card company or offers a loyalty card. Carrefour, for instance, has partnered with Najm credit card, and offers special billing counters for its customers as well as cashback and extra points. Union Coop too has a loyalty card named Tamayaz that offers special pricing for its customers.
Travel: Co-branded credit cards are a boon for anyone looking to cash in on the usual spends. Banks in the UAE through its tie-ups offer benefits such as Air Miles, points that can be redeemed for hotel stays across the world, car rentals, etc. Besides the point-based system, international credit cards issued in the UAE also offer flat discounts on room rates. These discounts can be as lucrative as 20 per cent.
Moreover, if you stay in particular hotels when travelling abroad, check if there is a membership or loyalty programme run by the group that benefits its frequent users. Several hotel chains have memberships and reward point systems, which can give you free upgrades or a complimentary ride to and from the airport.
Memorable experiences: The UAE has plenty of fun-filled activities for people of all ages. From skydiving to hot air balloon rides, paragliding, river rafting, dining at the highest restaurant in the world, et al, the choice is varied and in abundance. But often, people let go of these experiences to save a little extra or plough the available funds into daily expenses. If you are interested in basking in such adventures from time to time, look for a card that allows you to redeem points for such activities. It will spare you the pinch and create memories for life.
School fees: Incredibly, a number of card companies have tie-ups with schools and offer either cashback or discounts on tuition fees. In some cases, cashback is as much as 20 per cent of the total sum, making it a sweet deal. If you are running short of cash, banks here also allow tuition fees to be paid back as equated monthly instalments over a period of a few months or up to a year.
Nifty gifts: Last month when a friend got a new iPad Pro, we all turned green with envy. Available in the UAE for more than Dh2,500, he got this one virtually for free in lieu of the points accumulated on his credit card. Credit card companies usually offer a list of attractive gifts that can be redeemed for points. If you have loyalty cards, you can occasionally treat yourself to a new dress or accessory (again, virtually for free) at your favourite store.
Union National Bank (UNB) and Abu Dhabi Islamic Bank (ADIB) have some amazing offers on their cards. Read about them in this special report.
Whatever your interests, there is a card to suit every need. Make your wallet a workhorse by choosing the best credit and loyalty cards that allow money to make its way back into your pocket.
- suneeti@khaleejtimes.com

• UAE