What You Need to Know About UAE Credit Cards

Introduction:

Credit cards are widely used in the UAE, and they offer many benefits to those who use them. However, before applying for a credit card, it is essential to know the basic terms and conditions associated with it. In this article, we will discuss everything you need to know about UAE credit cards.

What is a Credit Card?

A credit card is a payment card that enables you to borrow money from a bank or a financial institution to make purchases. The bank sets a credit limit that you can use to make purchases, and you need to repay the borrowed amount within a specific period.

Types of Credit Cards:

There are varioustypes of credit cardsavailable in the UAE, such as:

1. Standard Credit Cards: These are basic credit cards that offer standard features and benefits.

2. Premium Credit Cards: These are high-end credit cards that come with exclusive benefits and perks, such as airport lounge access, travel insurance, and cashback rewards.

3. Co-branded Credit Cards: These credit cards are offered in collaboration with a specific brand, such as an airline or a hotel, and offer exclusive discounts and rewards for using them.

How to Apply for a Credit Card:

To apply for a credit card in the UAE, you need to meet the following requirements:

1. You should be at least 21 years old.

2. You should have a valid Emirates ID.

3. You should have a regular source of income.

4. You should have a good credit score.

You can apply for a credit card online or by visiting the bank's branch.

Credit Card Fees:

Credit cards come with various fees, such as:

1. Annual Fees: This is the fee charged by the bank for using the credit card for a year.

2. Late Payment Fees: This is the fee charged when you fail to pay the minimum payment on time.

3. Cash Advance Fees: This is the fee charged when you withdraw cash using your credit card.

4. Foreign Transaction Fees: This is the fee charged when you use your credit card for transactions in a foreign currency.

Credit Card Benefits:

Credit cards offer many benefits to their users, such as:

1. Cashback Rewards: You can earn cashback rewards on your purchases, which can be redeemed for various benefits.

2. Travel Rewards: You can earn travel rewards, such as airline miles, hotel stays, and car rentals, by using your credit card for travel-related purchases.

3. Discounts: You can get discounts on various purchases, such as dining, shopping, and entertainment, by using your credit card.

4. Insurance: Many credit cards offer travel insurance, purchase protection, and other insurance benefits.

Conclusion:

In conclusion, credit cards are a convenient and useful tool for making purchases in the UAE. However, it is essential to understand the fees, terms, and conditions associated with them before applying for one. By following the guidelines mentioned in this article, you can choose the right credit card that suits your needs and budget.

Tips for Saving Money with Credit Cards:

1. Pay off your balance in full every month to avoid paying interest charges.

2. Use your credit card for purchases that offer cashback rewards or discounts.

3. Avoid taking cash advances or using your credit card for high-interest loans.

4. Choose a credit card with no or low annual fees.

5. Keep track of your spending and set a budget to avoid overspending.

Recommended Credit Card Companies:

1. Emirates NBD

2. Dubai First

3. Mashreq Bank

4. Standard Chartered

5. Abu Dhabi Commercial Bank