Credit cards let you buy things upfront and then pay for them later, so you’re essentially borrowing the money. You’ll have a credit limit set by the provider, which is the maximum amount you can owe on the card at any one time.
You can use either a physical credit card, or add it to your digital wallet and use it via your phone.
If you repay the money you owe in full each month, you won’t be charged interest. But if you carry a balance over from one month to the next, you may have to pay interest on the remaining balance.[@financing-arrears-warning]
Explore: How credit cards work
A credit score predicts how reliable you are at managing repayments, based on anything you’ve borrowed in the past. It’s a 3-digit number (between 300 and 900) that’s calculated by the Al Etihad Credit Bureau (AECB).
Lenders will use your credit score when deciding whether or not to accept your application for a credit card.
When used responsibly, a credit card can help build your credit score.
Explore: How to boost your credit score
A credit card can be useful for several reasons, including:
There are some downsides to using a credit card, including:
APR stands for Annual Percentage Rate. This is the cost of borrowing money on a credit card – taking into account interest and any other charges – over the course of a year.
Interest is calculated and charged from the date of the transaction, based on your daily outstanding balance. Banks calculate interest on the basis of a 365 day calendar year - it accrues daily unless otherwise specified.
Interest is applied monthly to the outstanding balance if it's not paid in full by the statement due date.
APR rates may differ from product to product. Refer to the lender's Schedule of Services and Tariffs, also referred to as a "Finance Charge", before applying.
You may be able to pay off your credit card bill online, using mobile banking, over the phone, or in branch.
If you’re an HSBC customer, you can use online banking to pay your credit card bill.
Log on to online banking and select ‘Pay or transfer’ from Move Money. Then follow the steps to make a payment.
You can also pay by cheque, or with mobile or phone banking.
If you’re looking for a payment plan, you may want to consider a Cash Instalment Plan or a Flexi Instalment Plan.
