Saudi Credit Cards are being used by Saudis as a source of instant cash
Because of the necessity of having ready cash, most Saudis now use credit cards.
As a matter of fact, a recent survey found out that for every five persons, one person uses credit card to obtain instant cash.
It is common knowledge that cash withdrawals through credit cards is a very expensive method of getting cash due to higher charges than regular methods.
One out of every five persons use credit cards for their daily expenses and thirty percent use their credit cards for online purchases and travels.
The recent survey also showed that about thirty percent of Saudi residents only pay the minimum balance or the amount they can afford to pay on their credit card bill monthly.
Actually, these practices may lead to bankruptcy. But, for a country similar with the rest of the world that are emerging from the global crisis of 2008 until 2009, cash withdrawal from credit cards is inevitable.
But, due to lack of awareness of charges and fees or availability of personal loans, most Saudis resort to cash withdrawals against their credit cards.
Therefore even if the charges on cash advances are much higher than the regular credit card purchases, Saudis still prefer to make cash withdrawals from their credit cards rather because it is much easier and more convenient to do.
How Saudis Consider Saudi Credit Cards
Saudi nationals are particular about rates as the most important factor in choosing Saudi Credit Cards.
But, there are some that consider the perks such as air miles, valet parking, cash back and airport lounge access when choosing credit cards.
It is also noted that only half of Saudi nationals have credit cards and the half own at least one credit card.
Some Saudis consider which bank they will take credit cards from and they prefer local banks over international banks.
In contrast, expats prefer international banks as sources of their credit cards.
In summary, Saudi Arabia has numerous local and international credit cards that offer credit cards that Saudi nationals can choose from.
However, most nationals still need more education to help them learn the best way to use their credit cards.
Saudi Credit Cards and Saudis’ Bankruptcy
If Saudi nationals will not use their Saudi Credit Cards properly, they can go bankrupt faster than they expected.
Based on the recent survey, Saudis owning credit cards are indulging in expensive and unplanned foreign vacation financed by their credit cards.
However, using up their salaries and resorting to credit cards in order to fill the gap in their budget is not a good practice and will surely lead to financial disaster.
If Saudis will be educated about the proper use of credit cards and obtaining personal loans rather than cash withdrawals through their credit cards, going bankrupt will be avoided.
Apparently, local banks and some international banks offer low cost and low maintenance credit cards in order to help Saudis lower their obligations while using their credit cards.