Planning to move into a bigger home or better locality? That's exciting news. But it also means there will be additional expenses to account for. Moving costs, shopping expenses for new furniture and decor, brokerage fees, upfront deposits for Dewa, gas connection, Internet and others can really add up and wreak havoc on your monthly budget.
However, if you play it smart, you can ease the stress on your finances - all thanks to your credit card! Souqalmal.com lists a few tips to maximise the benefits you can reap from using your credit card while moving homes:
Spread your payments
What if you could get an interest-free loan that allows you to spread the cost of a big-ticket purchase? Well, this isn't just wishful thinking.
The trick is to use your credit card for big purchases and then convert your purchases into easy payment plans of up to 12 months at a zero per cent interest rate. This way, you ease the burden of paying the entire amount in one go or hefty amounts in interest on the carried forward credit card balance every month.
Banks in the UAE have tie-ups with most big retailers of furniture and electronics in the region. So, before you walk into a store, check with your credit card provider if the zero-interest installment program is available.
Make sure to clear the debt within the interest-free period, or else you will start to rack up interest on the outstanding debt. Also, check if there is a one-time processing fee applicable.
Earn rewards on your purchases
If you're going to move, shifting costs and related expenses are unavoidable. But, if you're going to spend anyway, why not benefit from it? Based on the type of credit card you have, you could earn rewards on your spends in the form of air miles, reward points or even cashback.
If you're in the market for a new credit card, keep an eye out for one with a big sign-up bonus which can be redeemed for a range of options such as shopping vouchers for electronics and other merchandise. This would help you offset some of the costs incurred while moving.
Remember that sign-up bonuses may require you to maintain a minimum spend requirement before you can use them.
Transfer your balance
If you have already splurged using a credit card that does not offer any installment plans, don't worry. You can simply transfer your outstanding balance to a new credit card and enjoy an interest-free period for around three to six months.
All you have to do is look for a zero per cent balance transfer card and transfer all your existing card debt. You could also earn reward points for all the big purchases you have made.
You may be charged a processing fees for the balance transfer, typically ranging from one to three per cent of the amount you transfer.
Extended warranty and purchase protection
Many of us like to upgrade our electronics and appliances with the big move. But, what if one of those items breaks or malfunctions after the manufacturer's warranty has expired? In a situation like this, your credit card could have your back. Check if your card offers extended warranty on items purchased with the card. This means that the purchased item will be covered under warranty typically for up to a year beyond the manufacturer's warranty.
Purchase protection is another feature offered by various premium credit cards. It works like an insurance cover which protects your credit card purchases up to a certain period of time, generally 90 days from the date of purchase. This means that the new purchases you make for your house will be covered in case they are lost, stolen or damaged.
By Ambareen Musa
