Credit cards are a payment method that lets customers make purchases and pay later within the credit limit granted by the bank, while also benefiting from installment programmes, offers and rewards that vary from card to card.

With so many credit cards offered by banks in Egypt, choosing the right one does not depend only on the size of the credit limit or the advertised benefits. It requires comparing a set of criteria, including annual fees, interest rates, the grace period, repayment terms, and benefits for domestic and international use, in line with the customer's needs and ability to repay.

In the following report, Banky reviews the key criteria to consider before getting a credit card, to help customers choose the card best suited to their everyday use.

1- Annual fees and issuance charges

Fees and costs are among the most important criteria to check before getting a credit card, since issuance and annual renewal charges differ from bank to bank and also vary by card tier.

It is advisable to review the card's schedule of fees and commissions and understand the total cost of keeping it, including:

First-time card issuance charges.

  • Annual renewal fees.

  • Supplementary card issuance fees.

  • Cash withdrawal fees.

  • Over-limit fees.

  • Additional fees linked to international use or certain services.

Comparing these fees helps identify the lowest-cost card for your pattern of use, rather than relying on promotional benefits alone.

2- Interest rate on outstanding balances

The interest rate is one of the most important factors to watch when comparing credit cards, especially for customers who may not be able to pay off the full balance due on time.

Financing costs are usually tied to amounts not repaid in line with the card's terms, and the way interest is calculated varies by bank and transaction type.

Customers should therefore check the interest rate applied to purchases, understand how it is calculated, and review any fees or commissions charged for late payment.

It is important to note that paying the minimum amount due does not settle the balance in full, as carrying the remaining balance over to later periods can incur interest and additional costs.

3- Interest-free grace period

The grace period is an important criterion when choosing a credit card. It is the period during which purchase dues can be repaid, under the bank's terms, without interest being charged.

Grace periods differ from bank to bank and can reach 57 or 58 days at some banks, depending on the card type and its terms.

Before getting the card, make sure to check:

  • The number of days in the grace period.

  • The conditions for benefiting from the interest-free grace period.

  • Whether the grace period covers purchases only or also applies to other transactions under the card's terms.

  • Bear in mind that a grace period does not mean you can always defer repaying the balance at no cost: benefiting from it usually depends on meeting the set repayment terms, and purchases are treated differently from cash withdrawals.

4- The credit limit and how well it fits your needs

The credit limit sets how much the customer can use through the card, within the limits and terms approved by the bank.

A high credit limit does not necessarily make a card the best choice. You should choose a limit that matches your monthly income, financial commitments and ability to repay what you spend.

Before choosing, find out the credit limit available for each card tier, the conditions for obtaining it, and whether you can request an increase in future under the bank's policy.

It is also best to define the card's main purpose, whether everyday purchases, bookings and travel, or online shopping, so you choose a limit that meets your actual needs without encouraging spending beyond your financial means.

5- Installment programmes, offers and rewards

Some banks offer credit cardholders extra benefits such as installment programmes, reward points, cashback and discounts at shops and restaurants, as well as travel and accommodation offers on certain card tiers.

These benefits differ from card to card, however, and may come with conditions such as a minimum spend or use with specific merchants.

Customers should therefore assess benefits against their actual spending patterns, taking into account the following:

  • Whether suitable installment programmes are available for the purchases they need.

  • The installment tenor and the conditions for using it.

  • Whether installments carry administrative fees or additional costs.

  • The value of reward points or cashback and the conditions for earning them.

  • How well the offers and discounts match their usual needs.

A card is a better fit when its benefits are ones you will actually use, not simply because it bundles more services.

6- Domestic and international use and cash withdrawals

What you can do with a credit card varies by card type and bank policy, so you should decide whether you will use it only for domestic purchases or also for travel, international transactions and online shopping.

It is important to review domestic and international usage limits, the fees charged on foreign-currency transactions, and the terms for cash withdrawals from ATMs.

Note that cash withdrawals on a credit card may be subject to fees, commissions and interest terms that differ from those on purchases, so it is best not to treat them as equivalent to withdrawing from a bank account without checking the cost.

7- Payment methods, security and digital services

Choosing the right card is not just about cost and financial benefits; it also comes down to how easy it is to manage the card, repay the balance and track transactions.

It is best to make sure the repayment channels suit you, such as the bank's app, online banking, ATMs or branches, depending on the channels the bank provides.

You should also review the available security services, including:

  • Notifications when transactions are made.

  • The ability to track purchases and balances through the app.

  • Verification methods for online transactions.

  • The option to temporarily freeze the card if it is lost or unauthorised use is suspected.

  • Easy contact with the bank to report unrecognised transactions.

These services help you monitor card use and spot unusual transactions more quickly.

Key tips before getting a credit card

Before applying for a credit card, it is advisable to compare offers from more than one bank based on your actual needs and to review the schedule of fees and commissions and the terms and conditions, rather than deciding on the card's name or tier alone.

You should also set a clear monthly repayment plan and make a point of paying off the full balance due on time whenever possible, to avoid the interest and costs that come from carrying balances over.

Ultimately, there is no single credit card that suits every customer. The best choice depends on balancing cost, benefits, the grace period and the credit limit, along with the customer's ability to manage their spending and meet their financial obligations.