The UAE has more than five million credit card users. The popularity stems from the way how you can purchase things even when your bank balance is low. The best feature for most expats is the grace period you get between the time when you buy and the time when you pay.
Understanding the Differences in Credit Cards
Banks in the UAE offer a variety of credit cards, each with value-added benefits. When you choose your credit card however, always check out the interest rate first. You should also see if you meet the minimum salary requirements. Lastly, always check the annual fees, late fees and especially the over-limit charges as these are often very high.
Most UAE bank credit cards fall under the following categories:
Points / Rewards Credit Cards – for every dirham spent, you earn points or rewards. These are then redeemed for in-store credit, discounts, payment for utility or telecommunication and so on. For example, the Emirates NBD Visa Infinite Credit Card.
Cashback Credit Cards – there is a minimum spending limit and a slab-like cashback system where you earn back either a percentage of your spending in cash. For example, FAB Cashback Credit Card.
Air Miles Credit Cards – these are catered towards travelers where you earn points or air miles on every booked ticket.
Balance Transfer Credit Cards – some banks allow you to transfer outstanding balances from another bank’s credit card. The benefit is that you are usually shifting from a high-interest rate to a lower interest rate. For example, Zero Credit Card from HSBC.
Travel Credit Cards – you get lounge access worldwide along with travel insurance and discounts on flights and hotel bookings. For example, ADCB Traveller Credit Card
Islamic Credit Cards – interest is forbidden in Islam. Instead of an interest rate, you get a profit rate which is used as a basis for paying the outstanding amount back to the bank. There is another method that some bank offer where irrespective of the outstanding amount, you pay a fixed monthly fee for the credit card. For example, Mashreq Al Islami Platinum Elite.
Business Credit Cards – are usually given to small and medium businesses to help with their daily transactions. For example, CBD Business Credit Card.
Premium Credit Cards – these offer high-end perks and may include VIP lounge access at certain airports. For example, First Abu Dhabi Bank Elite Infinite Travel Card.
Standard or Classic Credit Cards – minimum benefits are offered, but you may opt for this as many don’t have annual fees. These work well for people who want to use credit cards for small purchases and sudden emergencies. For example, Prime Classic Card from DIB.
In conclusion:
If you want to apply for a credit card just head on over to your bank or fill out the online application form. Bank Mobile Apps like the one from First Abu Dhabi bank take less than a minute. Just sign up for an account, choose your credit card, scan your Emirates ID, take a selfie and fill in your details. Your credit card arrives at your doorstep in a few days.
