A Credit Card is one of the convenient ways to make any purchase, pay bills, shop online, book flights as well as manage short term expenses. Residents of UAE can visit bank or other financial institutions of UAE to credit cards. You should know that there are different types of Credit Cards in UAE for different customers which includes salaried employees, shoppers, frequent travelers etc.
Just like a Debit card, a Credit Card in UAE allows the people to spend by using the credit facility provided by the card. You can repay the amount according to the terms of the card agreement.
If you are thinking to apply for a Credit Card in UAE then you have landed at perfect destination. Before proceeding, you must understand about its eligibility, requirements, credit limit, annual fees, interest, cash withdrawal, rewards etc.
What is Credit Card in UAE?
You should know that a credit card is considered as a payment card which is linked to a credit facility provided by the bank or other finance company. The card issuer will pay the eligible purchases or cash withdrawals on the behalf of card holder. The card holder will repay the amount according to the agreement of the card.
According to the Central Bank of UAE regulations, credit card is defined as the card which comes with a credit limit where the bank or finance company will pay at the time of purchase.
You can use the Credit Card in UAE for payments while shopping, eating at restaurants, supermarkets, online stores, booking tickets etc.
How does a Credit Card in UAE work?
Whenever any customer will receive the credit card the bank will provide them a specific card limit. For example, if you receive a credit limit of AED 20,000 then you will be able to make purchases up to the same amount which is subject to the terms of bank and available balance.
If you have spent AED 3,000 during the billing period then the amount will appear on your monthly statement. Now, bank will provide you a payment due date. Customers are required to pay the full outstanding amount according to the card’s terms to avoid the interest or profit charges. If you will pay only a minimum amount then the remaining balance will continue to attract the interest, profit or other charges. These calculations will depend on the card agreement.
How many types of Credit Cards are available in UAE?
You should know that banks offer different types of credit card in UAE depending on various categories. In fact, the benefits and eligibility will vary between banks. The different types of Credit Card in UAE are given below:
- Cashback Credit Cards
Actually, Cashback credit card provides cashback on the eligible purchases. However, the percentage as well as categories can vary among the cards.
In fact, some credit cards offers different cash back rates for different categories which includes groceries, fuel, dining, shopping or spending on other categories.
- Travel Credit Cards
You should know that Travel cards are especially designed for the customers who have to travel frequently. However, it depends on the card, you will get various types of benefits such as travel rewards, benefits on airline tickets, access to airport lounge, offers at popular hotels as well as travel insurance.
- Rewards Credit Cards
With Rewards credit cards, customers will earn points on every eligible purchase. These points will be redeemed for the products, vouchers, travel benefits as well as other rewards.
- Shopping Credit Card
There are shopping focused credit cards in UAE which can provide cash back, discounts, installment plans as well as special offers at selected retailers.
Premium Credit Cards
The Premium credit card will provide additional benefits at airport lounge, concierge services, travel privileges, exclusive offers with higher credit limits. They also comes with higher eligibility requirements as well as annual fees.
What is the Eligibility of Credit Card in UAE?
You need to know that the eligibility of credit card will depend on the bank as well as the specific card. However, the common eligibility of the card are given below:
- Annual or monthly income
- Employment status of the applicant
- Employer
- Employment length
- Residence status in UAE
- Credit history
- Age
- Required documents
- Relationship with bank
- Existing financial obligations
The Central Bank of UAE has set the credit card regulations to a minimum annual income requirement of AED 60,000 for issuing a credit card. However, banks can set their own limits as well as policies. The regulation also provides for cards against a pledged deposit of at least AED 60,000 in certain circumstances.
But you should know that regulatory threshold does not mean that bank will approve your application.
What are the Required Documents for a Credit Card?
You should know that the required document will depend on the bank as well as applicant. The commonly demanded documents are mentioned below:
- Emirates ID
- Salary certificate
- Passport
- UAE residence information for expatriates
- Bank certificate
- Proof of income
- Employment information
- Existing financial information
The applicants who are self employed may have to submit their business or financial documents. Even more, banks can also request additional information in order to access the applicant’s ability to repay the credit facility.
What is the Credit Card Limit in UAE?
Actually, the credit limit means the maximum amount which bank has allowed you to use on the credit card.
Suppose, Bank has approved a credit limit of AED 10,000, AED 20,000 or AED 50,000 depending on the applicants profile or the bank policies.
In fact, your income, employment, credit history, relationship with bank, financial commitment can also influence the credit limit.
You should also know that higher credit limit does not mean that you should spend more. You should only use the amount which you can repay comfortably.
What is the Annual Fees of Credit Card in UAE?
Actually, the annual fee varies between the cards. It mostly depends on the card type. Some credit cards have annual fees whereas other comes with free under certain conditions. Before applying for the credit card, you must check the following points which are mentioned below:
- Annual membership fee
- Conditions applied for fee waiver
- Supplementary card fee
- Cash withdrawal fee
- Transaction charges on foreign payments
- Late fine fee
- Charges of balance transfer
- Applicable charges
Can I withdraw cash from UAE Credit Card?
Some credit card allows the customers to withdraw cash from the ATMs. But you should know that cash withdrawals are more expensive than normal purchases. Depending on the card, customers have to pay advance fees and applicable interest or even profit charges.
So, it is not recommended to withdraw cash from the credit card. In case of emergency, you should always check the schedule fees of the card before withdrawing money.
What is Installment Plan of Credit Card in UAE?
There are some UAE credit card which allows the customers to convert the eligible purchases into installments. It means that you can divide the large purchases into several monthly payments instead of being paid at one time.
But Installment plans has some specific interest, profit, processing fees, promotional conditions etc.
Before selecting any installment plan, check the total amount which you have to pay instead of looking at the monthly installment only.
How to Choose a Credit Card in UAE?
There is no single credit card that is suitable for everyone. The right choice depends on your spending habits and financial requirements.
Before applying, compare:
- Annual fee: Check whether the card has an annual fee and how it can be waived.
- Interest or profit rate: Understand the cost of carrying an unpaid balance.
- Rewards: Check whether cashback, points, or miles match your normal spending.
- Credit limit: Choose a limit that fits your financial situation.
- Foreign transaction fees: Important if you frequently travel or shop from international websites.
- Airport benefits: Frequent travelers may want to compare lounge and travel-related benefits.
- Instalment options: Check the available plans if you regularly make large purchases.
- Eligibility: Make sure you meet the bank’s income and other requirements.
What to Do If Your Credit Card Is Lost or Stolen?
If your credit card is lost or stolen, contact the issuing bank immediately and request that the card be blocked.
You can then follow the bank’s replacement procedure.
The Central Bank’s published retail fee schedule currently lists a maximum credit-card replacement fee of AED 75.
The actual amount charged can depend on the bank and circumstances.
Final Thoughts
A credit card in the UAE can provide convenient payment options, rewards, cashback, travel benefits, discounts, and access to short-term credit. However, it is important to understand the costs and repayment responsibilities before applying.
Compare the annual fee, interest or profit rate, credit limit, rewards, foreign transaction charges, instalment options, and eligibility requirements of different cards.
Most importantly, use the card within your budget and make payments on time. Paying only the minimum amount can increase the total cost of borrowing and extend the repayment period.
Before applying for any credit card, check the latest terms and fee schedule directly with the issuing bank. UAE banking products and promotional offers can change, so current information should always be confirmed before making a financial decision.