The asset-backed facility will increase Tamara’s lending power and help the platform grow well beyond its current 20 million customers. Speaking about Tamara, the start-up has already created a niche in the Gulf region’s financial space, especially with buy-now-pay-later payment systems.

The start-up reached a valuation of USD 1 billion in late 2023 after a USD 340 million Series C funding round in which investors, including SNB Capital and Sanabil Investments, owned by Saudi Arabia’s sovereign wealth fund PIF, participated.

Fuelling Saudi’s Entrepreneurial Spirit

Tamara began its journey as a “Buy Now Pay Later” service before transforming into a full financial lifestyle platform. Now, in addition to supporting people’s daily lives by offering a fair, transparent, and Sharia-compliant payment experience (with no late fees), the start-up is partnering with businesses of all sizes — from local startups to global brands — to boost customer loyalty and drive growth through a frictionless payment journey.

Millions of users across Saudi Arabia, the UAE, Bahrain, and Kuwait trust Tamara to pay their way at SHEIN, IKEA, Farfetch, Jarir, Noon, and hundreds more.

Tamara’s rise to fame has been driven by its BNPL service. The fully Sharia-compliant “Pay Later” service allows users to shop now and pay later in instalments, with no late fees. Gulf residents can shop from over 26,000 stores and discover exclusive deals on their favourite brands.

Shoppers also get to take control of their money by tracking every payment, managing their plans, and paying over time in up to 24 months, all through one powerful app. To sweeten the deal further, the start-up charges absolutely no late fees on customer payments.

When it comes to giving its customers an all-around shopping experience, Tamara has put 26,000 brands under one roof, in addition to personalising exclusive deals for Gulf shoppers. Many of these stores offer exclusive offers and discounts to Tamara customers, primarily via the “Farah Discounts Programme.”

Let’s talk about Tamara’s “Buyer Protection Programme,” which ensures its customers’ shopping experiences remain in safe hands. If a customer doesn’t get their order on time, the start-up helps track it down or issues a refund if needed. If the buyer receives a defective product or one different from what was expected, or if the refund or cancellation request hasn’t been processed by the store, Tamara steps in to ensure things are sorted smoothly.

Promoting the concept of “healthy shopping,” Tamara’s credit score gives shoppers an understanding of how “creditworthy” they are (how likely they are to pay off their loans on time). The credit score gauges the risk in lending shoppers money. However, the good news is that early payments only boost and ultimately unlock higher spending power for shoppers.

Solutions For Partner Businesses As Well

“Tamara Business” has emerged as a seamless payment processing system built on simplicity. Since customers get to split their purchases into up to 24 months, partner businesses are paid upfront. Whether online, in-store, via QR, saved cards, Mada (the national payment scheme of Saudi Arabia), Apple Pay, or one-click flow, the start-up provides diverse payment options for businesses in the Kingdom to ensure customers and brands connect seamlessly.

Through Tamara, brands like Amazon, Shein, AliExpress, Pan Home, and IKEA have seen a 50% increase in average order value, 50% more repeat purchases, a 12% increase in customer acquisition rate, more than 15 times ROI (Return on Investment) on marketing spend, a 50% reduction in cash on delivery, a 20% reduction in refunds, and a 25% decrease in customer acquisition cost.

While businesses are accepting, processing, and settling every payment securely, they are also turning high-intent browsers into buyers with smart marketing tools and exclusive discounts, all through Tamara’s financial platform.

Through its advertisement service, Tamara is also helping brands grow and engage with their customers at scale. The start-up claims to have a pool of 11 million-plus high-intent shoppers (consumers actively looking to make a purchase, rather than just browsing or researching). Through Tamara’s digital platform, brands can engage with these customers at scale, with perks such as showcasing their brand through unique ad placements on Tamara’s app and a guaranteed 25% sales increase.

Tamara helps brands precisely target their campaigns to the right audience by leveraging advanced targeting tools to reach shoppers based on factors such as interests, purchase behaviour, and demographics. The ads are served to highly qualified leads, maximising businesses’ return on ad spend every single time.

The Revibe Success Story

Established in 2022, UAE-based Revibe set out to create trust in the Gulf region’s second-hand electronics market. The start-up’s vision was to create a reliable platform where customers could confidently purchase refurbished and pre-loved electronic devices.

Three years down the line, Revibe is now known for its dedication to fighting the menace of “electronic waste” by offering refurbished and pre-loved devices. By extending the lifespan of these gadgets, the start-up mitigates environmental impact and provides customers with budget-friendly options without compromising on quality, all while promoting the concept of tech accessibility for all.

However, the journey wasn’t smooth, as Revibe encountered the common obstacle of cart abandonment, particularly with high-value electronics, stemming from consumer hesitations. The start-up urgently needed an advertising solution to drive traffic, reduce cart abandonment, and increase brand recognition.

“Tamara Ads emerged as the ideal remedy for Revibe’s challenges. By utilising Farah Discounts, which focuses on discount-led promotions and targeted audience engagement, Revibe effectively reached potential customers while also elevating their brand profile. Premium placements on Tamara’s platform, including Sponsored Store spots and Sponsored Product listings, further boosted their visibility,” the start-up noted.

The collaboration between Revibe and Tamara yielded remarkable outcomes, including a 33% order uplift, a 54% reduction in cost per order, and more than three million app impressions.

The post Start-up of the Week: Tamara transforms Gulf shopping with BNPL & discounts appeared first on International Finance.

Understand your credit score

Your credit score is a key factor that lenders use to determine your eligibility for a loan and the interest rate you’ll be offered. Before applying for a mortgage, check your credit score and obtain a copy of your credit report. Address any issues that may negatively affect your score, such as unpaid debts or errors in your report. A higher credit score typically means a lower interest rate and better loan terms.

Determine your budget

Before you start house hunting or apply for a loan, assess your financial situation to determine how much you can comfortably afford to borrow. Consider not only the mortgage payments but also property taxes, insurance, maintenance costs, and utilities. Use a mortgage calculator to estimate monthly payments and ensure they fit within your budget. It’s crucial to have a clear understanding of what you can afford to avoid financial strain in the future.

Shop around for lenders

Don’t settle for the first loan offer you receive. Different lenders may offer varying interest rates, fees, and loan terms. Shop around and compare offers from multiple lenders, including banks, credit unions, and online lenders. Pay attention to the annual percentage rate (APR), which includes both the interest rate and any fees. A lower APR can save you significant amounts over the life of the loan.

Get pre-approved

Obtaining a pre-approval letter from a lender before you start house hunting can give you a competitive edge and help you understand your borrowing power. Pre-approval involves a lender reviewing your financial situation, including your credit history, income, and assets, to determine how much they’re willing to lend you. This not only strengthens your position when making an offer but also helps you set realistic expectations for your home search.

Understand the loan terms

Mortgage loans come with a variety of terms and conditions. Familiarise yourself with key terms such as the interest rate, loan duration, and whether the rate is fixed or adjustable. A fixed-rate mortgage has a consistent interest rate and monthly payment, while an adjustable-rate mortgage (ARM) may offer lower initial rates but can fluctuate over time. Make sure you fully understand how these terms will impact your monthly payments and long-term financial plan.

Consider the total cost of the loan

When evaluating a loan offer, look beyond the monthly payment and consider the total cost over the life of the loan. This includes the principal amount, interest, and any fees or closing costs. Calculate how much you’ll pay in total and compare it with other loan offers. Sometimes a loan with a slightly higher interest rate but lower fees can be more cost-effective in the long run.

Prepare for additional costs

In addition to the mortgage payment, be prepared for other costs associated with buying a home. These can include closing costs (such as appraisal fees, title insurance, and lender fees), moving expenses, and home maintenance. Setting aside funds for these additional costs will help you avoid unexpected financial stress. Make sure to discuss with your lender what costs are included in your loan and what you’ll need to cover out-of-pocket.

The post Essential tips to follow when taking out a house loan appeared first on International Finance.

It will take some time to rebuild your credit score post-bankruptcy, so practising patience will be key here. And at the same point of time, instead of sitting idly and leaving everything on the fate, you need to make calculated moves to ensure that your credit gets rebuilt.

Here are the seven tips that will help you rebuild your credit after Chapter 7 or Chapter 13 bankruptcy:

Check Credit Report

Check your credit records for unpaid bills. After you discharge your obligations, your credit record may take 60 days to update. Be mindful of your debts. Make sure that the credit bureaus have marked your account “discharged.”

Contest credit record errors with the credit bureaus. Legally, credit reporting companies must investigate and respond within 30 days.

Learn how to access your credit report on the FTC website.

Resolve Debts

Your monthly revenue should guide your budget. Reduce your spending and save to pay off debts gradually.

Authorise Credit Card Use

Be an authorised user of a credit card with acceptable payments. Request that a family member allow your credit card use. This can boost your credit score by improving your payment history.

Use New Credit Cards Responsibly

After bankruptcy, don’t overspend on a new credit card or you’ll get into debt again. Use your cards only for what you can afford and pay off the debt in full. Avoid interest by paying your bill inside grace time. On-time payments increase your credit score by 35% from your payment history.

Finally, avoid credit card maxing. To increase your credit score, keep your credit utilisation ratio below 30%.

Get A Secured Card

You don’t need a certain credit score for a secured card. If you default, the credit card company will keep your security deposit. Your security deposit determines your credit limit.

Protect Credit With An Emergency Fund

Having an emergency fund helps with unforeseen bills. If you can’t pay, use your emergency money. First, set up a monthly amount and then budget. Most financial experts recommend saving five to six months of spending in an emergency fund.

Use Loans/Credit-Builder Accounts

Cosigners can help you get a small personal loan to rebuild credit. With a cosigner, lenders may approve your loan application quickly because they provide legal and financial support. Use the loan to restore your home, fix your car, or start a passive investing portfolio. Once you start paying on time, your score will rise.

Another option is a credit-builder loan. A bank holds your money in an account until you pay off this secured installment loan. You can choose a 12- or 24-month loan term and qualify even with bad credit. By making monthly payments on schedule, your credit score will rise.

The post How to rebuild credit after bankruptcy appeared first on International Finance.

“Creditors still have an opportunity for repayment with the bankruptcy process. Bankruptcy is handled in federal courts,” the act states.

While opting for financial protection under the bankruptcy clause can provide a business with some degree of relief, at the end of the day, it impacts the entity’s credit. Also, the credit scores of those running the organisation.

After filing for bankruptcy, an entrepreneur needs to rebuild his/her credit, which will take time and consistent effort, but necessary if the person wants to start a venture afresh.

Does bankruptcy affect credit?

Before determining a person’s credit history, lenders always keep the ‘Payment History’ in their mind. When a business files for bankruptcy, the individual running it will not be repaying covered debts in full as per the original credit agreement. However, it will severely downgrade the person’s credit score.

“A bankruptcy filing will appear on an individual’s credit report for up to 10 years, making it difficult to obtain credit or loans in the future. An entrepreneur may also have difficulty obtaining credit from suppliers or vendors, as they may be hesitant to extend credit to a business that has filed for bankruptcy,” Entrepreneur.com suggested.

Remember, bankruptcy wipes away/reduces debt that the entrepreneur cannot afford to pay and tells the world that he/she is at credit risk. It will make it tough for the concerned person to even borrow and spend. Getting a credit card, a personal bank loan or a mortgage will also be very difficult.

However, there is another side of the coin. Bankruptcy also comes with the prospect of clearing negative items from the entrepreneur’s credit report, thereby leaving only the bankruptcy itself as a negative remark. The person can, in fact, discharge most of the debts and start afresh.

From there on, lenders may not approve certain types of credit or they may clear the credit application with higher interest rates or other unfavourable terms.

In the United States, negative FICO scores (creditworthiness assigned by credit bureaus) take down credit scores too. An entrepreneur with an average 680 FICO score will lose between 130 and 150 points in bankruptcy. Someone with an above-average 780 score will lose between 200 and 240 points. Both will become “Risky Borrowers”, making it difficult to get loans/unsecured credit.

“On the other hand, if your score is in the 400s or 500s when you file, it’s possible that your score may experience a boost from the bankruptcy filing. People in this score range have seen credit score boosts as high as 50 points after filing for bankruptcy,” Debt.org explained the process.

Bankruptcy under Chapter 13 stops collection actions and creates a plan for borrowers to partially repay creditors over a fixed number of years. Chapter 7 eliminates most unsecured debts, meaning the creditors cannot recoup what they advanced.

Chapter 7 bankruptcy will negatively affect the FICO score for 10 years. A Chapter 13 filing, on the other hand, will remain on the person’s record for seven years after receiving a Bankruptcy Code discharge/dismissal.

“Bankruptcy’s impact on your credit score will also vary according to how much debt you had discharged and the ratio of positive to negative accounts on your credit report. This is because major credit score factors such as late payments and credit card utilisation will be reset,” Debt.org commented further.

Can the bankrupt person get a credit card?

Yes, he/she can, but it will be difficult after filing for bankruptcy. Lenders will see the person as a ‘Higher Risk’.

The practical way out here will be availing of a card tailored for rebuilding credit. A secured credit card, which anyone can get even after entering bankruptcy, typically has a credit limit equal to the amount of security deposit that is provided.

“However, some unsecured card issuers won’t pull a credit score or may extend a line of credit even if there are blemishes on someone’s credit history. Just be aware that these types of cards typically have extremely high rates and an abundance of fees. A secured card is likely the better option with lower costs,” Entrepreneur.com noted.

However, it must be clarified here that the bankrupt persons cannot apply for a credit card, while the legal proceedings are on. You will be requiring court approval to opt for any fresh credit line.

Under Chapter 7, bankruptcy takes approximately four to six months after the initial filing to be completed and the applicant’s debts are discharged. A Chapter 13 bankruptcy takes somewhere between three to five years, as the clause will restructure the debt that the concerned person will pay off over time. In both cases, if the person is applying for a credit card during the legal proceedings, he/she will be requiring court approval.

Charting the recovery path

After bankruptcy filing, find out the accounts which are still open. While bankruptcy cancels most debt, some need to be paid as well. While paying down these debt balances will lower the debt-to-income ratio, that will only happen when the payments are consistently on time.

Pay attention to your credit balances, which will directly impact the credit utilisation ratio. Reduce credit card usage and pay down debt balances whenever possible.

Save money for each payday, and build emergency savings. This will help you to avoid incurring future debt that could impede rebuilding credit.

Avail a secured credit card to rebuild your credit.

Some of the secured card issuers allow cardholders to move on to an unsecured card after making consistent and on-time payments. This will make sure that you do not need to apply for a new card as your credit starts to improve.

Talking about unsecured cards, product issuers will not check your credit score and will even extend a line of credit irrespective of your credit history. These cards, however, come with fees and sky-high rates, so be careful about that. Secured cards, on the other hand, provide lower costs.

After getting your new card, focus on improving your credit score to qualify for better credit cards and loans with favourable terms.

Pay your monthly bills on time every month to improve your FICO Score. Pay off your existing debts. Keep your credit utilisation ratio low, as the amount of total credit you use as a percentage of your credit limit will also weigh in at 30% of your score.

Sign up for something like United States-based ‘Experian Boost’, which counts your payment behaviour from one of your linked checking accounts. There are digital tools like American Express’ FICO Score Planner, which maps out a blueprint of credit-building actions.

Use your secured credit card to build good payment behaviour and improve your credit profile. Your credit score will rise steadily over time. So be patient and practice responsible spending habits.

Also, opt for a credit builder loan. You can also get a secured loan that allows borrowing against savings. The payment activity for a credit builder loan will be reported to a major credit bureau, which will improve your credit score too.

Get a co-signer to boost the chances of your loan getting approved. In this case, lenders will consider the co-signer’s credit score too. And the co-signer will be equally responsible for paying the loan back. Also decide on things like for what purpose, the line of credit will be used, what will be the credit limit, and a repayment plan.

On the personal front, control your spending habits, as overspending leads to more debt. Explore money management apps. Even 21st century banks are also offering similar options. Check your bank balance daily, and check regularly whether your spending limit matches up with your monthly budget. Most importantly, avoid piling up a massive credit card bill at any cost.

Patience is the key here

If a bankrupt entrepreneur is making consistent payments, and has a low credit utilisation ratio and low debt-to-income ratio, he/she will see positive changes to their credit score after approximately six months (from the time they filed their bankruptcy plea).

Take a long-term approach here. Understand that the mention of bankruptcy will be on your credit report for seven to ten years. It is up to you to stay patient and act responsibly to improve your credit score.

The post Rebuilding credit after bankruptcy appeared first on International Finance.

In today’s article, we will discuss about the quick and simple solutions to improve your credit score, which will help you look ‘responsible’ in front of the lenders as they remain confident about your ability to manage debt.

Strategic Payment Of Card Balances

Credit utilisation is the sum total of balances on all of your credit cards divided by the total of your credit limits. The less available credit you use, the better your score gets.

Pay your credit balances on time and in full. Use less than 30% of your card limit. Make sure your credit balance is low, as the payment card insurer reports it to the credit bureaus.

That figure will then be used to calculate your credit score.

The Game Called ‘Higher Credit Limit’

In case your credit limit is going up and your card balance remains the same, it will lower your overall credit utilization and improve your credit. If your income has gone up or you have added more years of positive credit experience, your credit limit too will get a higher limit.

You can request the concerned authorities to get your credit limit higher.

Also, try to avoid a ‘Hard Credit Inquiry’ from the card issuer as it will temporarily drop your score.

Once the credit bureaus come to know about the higher limit, it will automatically lower your credit utilization, but with one condition, you don’t overspend your credit.

Credit Piggybacking

Do you have a relative/friend who possesses a credit card account with a high credit limit, apart from having a good history of on-time payments? Feel free to ask him/her to add you as an authorized user.

This will add the account to your credit reports and the credit limit can help your utilization. The phenomenon, known as ‘Credit Piggybacking,’ allows an ‘Authorized User’ to benefit from the primary user’s positive payment history.

And yes, you can enjoy the benefits of being an ‘Authorized User’, without even asking your near one his/her card details and account number.

Pay bills On Time

A late bill payment will remain on your credit reports for close to eight years. Don’t be a laidback after missing a payment deadline. Call the creditor, pay the amount and ask whether the concerned authority will consider reporting the missed payment to the credit bureaus.

Also, remember that there are two types of credit enquiries, soft and hard. In case of a soft one, you check your credit score to become credit aware. However, when a lender/card issuer fetches your credit report from the credit bureau against your credit application, it is considered a hard enquiry.

Don’t go through multiple hard enquiries in a short span of time, because it will make the lenders believe that you may possess higher risks of credit default. This will lead to credit application rejection, apart from your credit score getting lowered.

Dispute Credit Report Errors

Feel free to ask for reports from the major credit bureaus. Also, there are third-party websites like AnnualCreditReport.com, which helps to generate credit reports from major bureaus. These reports contain details like ‘Late Payments’ and someone else’s credit activity getting mixed with yours. If you spot discrepancies, dispute credit report errors to enquire about the ‘Unknown Errors’ which can affect your credit score unnecessarily.

Once the mistakes get rectified by the credit bureaus, your credit score will increase.

Deal With Collections Accounts

Try to pay off a collections account, as the action will ensure that you won’t be sued by the creditor over the debt. You can also persuade the concerned agency to stop reporting the debt once you pay it.

The collection account can also be removed from the credit report, in case the figures are inaccurate or too backdated to be listed. It will ensure that your credit report won’t carry a negative mark on your credit report.

Monitor Your Loan Accounts Regularly

As a loan applicant, if you are not meeting some of the pre-determined eligibility set by the lender, the latter will ask you to get the application document co-signed/guaranteed by a co-applicant who has better creditworthiness. The logic behind the move is that in case you fail to repay some part of the loan that can be repaid with the guarantor’s assistance.

However, the non/delayed payments of EMIs on time affect the credit scores of both the co-signor/guarantor and the borrower. So if you are one of the borrowers or the co-signer/guarantor, regularly monitor whether the EMI repayment has been done on time and discuss it with the other individual.

Longer Repayment Tenure & A Bigger Credit Limit

Longer loan repayment tenure will present you with more cash in hand and a lower monthly EMI amount. The only downside here is that you will have to pay more interest but the move will help you repay your monthly dues with less difficulty, apart from reducing your EMI/NMI ratio. A lower EMI/NMI ratio will then favour you during the time of loan approval.

Also, credit card issuers offer periodic credit limit enhancement options depending on your card usage behaviour. If you get the option of increasing your credit limit, grab it with both hands.

Just keep your utilization ratio low (less than 30%) to have a positive impact on your credit score. If your utilization ratio is high, ensure that you are repaying your dues on time.

Think About A Healthy Credit Mix

Have a healthy mix of unsecured credit like credit cards/personal loans and secured loans like auto/home loans. Consumers with a higher number of credit accounts possess more credibility than those who are new/have less number of credit accounts.

Lenders and bureaus tend to trust applicants who have successfully handled various types of credit accounts. If you have only credit cards, try to get a low-cost credit-builder loan. If you have only loans/few credit cards, think about having a new credit card.

Avail Credit For Rent & Utility Payments

“Rent reporting services can add your on-time rent payments to your credit reports. Rent payments are not considered by every scoring model — VantageScores include them but FICO 8 does not, for example. Even so, if a would-be creditor looks at your reports, rent records will be there, and a long record of consistent payments can only help,” states NerdWallet.

“Experian Boost may also help. You link bank accounts to the free Boost service, which then scans for payments to streaming services, phone and utility bills as well as eligible rent payments. You choose which payments you want added to your Experian credit report. If a creditor pulls your FICO 8 using Experian data, you get the benefit of that additional payment history,” it adds further.

The post Check out the tips to improve your credit score appeared first on International Finance.

Credit cards, apart from offering perks and benefits like a one-time signing bonus for a new cardholder, cash back for purchases, rewards points, and frequent-flyer miles, also provide an enhanced safety level than a debit card.

However, you need to keep certain factors in mind, while choosing the right credit card. This article will try to enlighten you on this front.

Be Clear About Your Credit Score Requirements

This factor is crucial and should come on the top of your priority list, while selecting the credit card, as it can significantly impact your odds of approval and your account terms.

While the function of sharing minimum credit score requirements is not performed by all the issuers, they can still offer some general guidance. Certain credit cards may be perfectly suitable for people falling within specific credit score ranges like “fair” or “very good.”

Have A Plan On Using Credit Card

Do you want to use the credit card for daily purchases? Are you ready to put that ‘extra effort’ to maximise your card rewards? Do you travel abroad often? Flat-rate reward cards, multiple rewards cards offering complimentary bonus categories and credit cards exempting foreign transaction fees, are all available in the market. Have a clear roadmap in your mind on how you will make the best use of your credit card and then proceed to select the product.

Also, decide prior on whether you need to finance a large purchase, because a credit card offering an introductory 0% annual percentage rate (APR) to spread out payments over time, will take care of the particular requirement.

The Fee Consideration

Getting a card with an annual fee doesn’t make sense if you are not spending enough. Only if the value of the card’s rewards and benefits exceeds the fee, then paying an annual fee make sense. Also balance transfer fees range from 3% to 5% to USD 30-50, which depends on your balance transfer amount. In that case, think about saving money by finding a card that charges a lower balance transfer fee.

Also, think about obtaining a credit card that doesn’t charge late payment fees. For this, create a payment reminder/autopay feature for the minimum payment account. Also, be mindful about foreign transaction fees, while making purchases outside your home country. You can save up to 2% or 3% per foreign transaction by choosing a credit card that exempts this fee.

The APR Factor

Your credit card’s Annual Percentage Rate (APR) represents the interest rate you will be charged for carrying a balance amount. While choosing a new credit card, aim for an APR which is lower than the average credit card interest rate, as ‘Excellent Credit’ will help you to qualify for the lowest interest rates.

A single credit card can have multiple APRs like ‘Ongoing APR’ (where you will have to pay the charge at a standard interest rate as you carry a balance), ‘Introductory 0% APR Card’ (where the credit card issuers offer a promotional 0% intro APR rate on purchases and/or balance), ‘Penalty APR’ (credit card companies charging a higher penalty APR if the cardholder’s payment is late by at least 60 days) and ‘Cash advance APR’ (credit card cash advances carrying a separate and higher APR that applies even if the customer has a 0% intro APR offer for purchases and balance transfers).

What About Rewards?

We all know that credit cards are known for being generous, when it comes to offering cash back, points or miles on every eligible purchase, to its customers. Rewards come with three earning styles, Flat Rate(rewards providing the same earning rate for every eligible purchase), Tiered Rate (offering bonus rewards on select bonus categories like travel, dining, groceries and gas), Rotating Rate (this earning pattern involves around bonus categories that rotate on a quarterly basis, during a financial year) and Cash Back Rewards (cashback under this category is the easiest one to use as the user can redeem the rewards for statement credits).

Also, be mindful about the rewards points which come with credit cards. These points will help you to earn flexible rewards points, points which offer more value. A tourist can receive a higher redemption value using the points for travel than redeeming for cash back.

Many ventures also partner with card issuers to create co-branded cards, which can be a good option to earn rewards with companies you frequently purchase your products from, say for example flight tickets and hotel bookings.

Credit Limit

The term ‘Credit Card Limit’ represents the maximum amount of money a customer can borrow on his/her credit card. The initial credit limit depends on the user’s credit history, credit score, and relationship with the card issuer and other factors.

Do some research before buying the card as you will definitely come across minimum credit limits for some cards. Credit card issuers also review your account for a credit limit increase. However, if you improve your credit, pay your bills timely and update the card issuer with your new salary, it will result in the card issuer increasing your credit limit automatically.

What About Virtual Credit Cards?

Virtual credit cards are the in-built digital cards, which come inside digital wallets like Apple Pay/Google Wallet. These products also come with security measures like tokenization and fingerprint biometrics.

Digital wallets also use Near Field Communication technology (NFC), which allows the information to be transmitted from one device to another in close proximity. Also, consumers’ credit cards remain safe from card skimmers, an act which involves stealing information from credit cards when they’re swiped through compromised terminals/card readers.

The post Buying credit card for first time? Be mindful of these tips appeared first on International Finance.