Credit cards have become an integral part of the daily financial transactions that are taking place all over the world. These days’ businesses of all nature support and encourage all transactions to be done via credit card rather cash.
Cash has become a thing of the past, and most the people in every country don’t have more than a few notes in their wallets always. In a survey, which had been conducted on the credit card usage in the Kingdom of Saudi Arabia by the Souqalmal.com, following wrong practices of credit card users in Saudi Arabia are revealed.[irp]
1-It showed that more than 30% of the people who had responded to the poll only paid the minimum balance or the minimum amount that they could afford to pay off their total monthly credit card bills. A report was published in this survey, in which 1000 credit card users participated, in the Saudi Gazette.
2-The results of the conducted survey state that around 1 in every 5 credit card users freely swipe their credit cards for their day to day expenses, while more than 30 percent of these credit card users, used their cards for traveling and online shopping. Although it may not seem alarming, there is something which is far more concerning.
For a country, which is now recovering from a financial crisis, one in five people are using their credit cards daily to make transactions. These credit card transactions incur a high amount of additional charges along with interest.
3-Ambareen Musa, the CEO of Souqalmal.com stated that the use of credit cards to withdraw money is an expensive means to access your cash. He added that people are not informed about the charges or the fees that are incurred by them.
4-Ambareen Musa also stated that if the credit card users pay off their credit balance regularly, then the credit cards added perks and benefits which are offered by the banks can be enjoyed. Ambareen also stressed on the fact that the credit card users need to be better informed and educated about the proper use of their credit cards.
The results of this survey also stated that more than half of the Saudi nationals who were approached to participate in the survey did not have a credit card, and around one-third of them had only 1 credit card.
In relevance to the choice of banks, the results indicate clearly that the Saudi nationals prefer the local banks, while the international banks are preferred by the westerners.
Regarding the choice of credit cards, almost one in four respondents stated that the rate was the most important factor while choosing cards, whereas` almost 1 in 5 of the respondents listed the fees as the main factor for their choice of credit cards.
The other factors which are included in what people look at while choosing their cards are the added benefits received with the use and transactions of the card such as bonus air miles, special lounge access at the airport and the cash back offers offered by the credit card companies.