Types of Credit cards in UAE

There are various Credit cards in UAE which come along with unique characteristics suitable for each and every expat and local in need of short term card money. All these forms of credit cards are offered by Banks in UAE, financial institutions etc. There are many types of credit cards available for use to the public but I will look specifically into two which are the Free for life credit cards and titanium credit cards. Both these two sets of plastic money basically perform the same role though they have different features attached thereof. The dominant players on this credit market are Banks in Dubai which vigorously market their cards to employees both old and the new ones just joining the UAE. To apply for Credit cards in UAE, simply login your details.

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Free for life credit card in UAE

A free for life credit card in UAE is one of the most convenient forms of plastic money offered by UAE Banks and its name derives from its major characteristic were-by it is a free for life credit card. Being free for life entails that there is no joining fee attached or charged to this card, it is purely joined with zero payment and as a result, many term it a free credit card.On-top of being joined freely, the free credit card in UAE has no annual fees or membership fees, this alone to a cost conscious client or prospective client , makes it qualify as the best UAE credit card and in this regard, it surely is the best card in UAE cost-wise but when one looks at this scenario from a benefits point of view, it then becomes a huge mountain to pronounce it as the class of best credit cards in Dubai since the titanium card has more to offer in terms of benefits. So if an expat is looking for a cheap credit card, then the free for life credit card in UAE is definitely an option to consider.

Titanium Credit card UAE

The Titanium credit card UAE differs from the free credit cards in that the Titanium card has an annual fee which is effected from the second year onwards, yet the other falls under credit cards in UAE without annual fee, on-top of the credit card fees, the Titanium UAE Credit card has a membership fee, this is the fundamental difference between the two UAE credit cards,but the titanium has many credit cards offers in UAE compared to the free for life card. So if one wishes to apply for a credit card purely on the basis of offers, the titanium credit card is the one to go for since it has approximately 50% more offers compared to the free for life credit card UAE

What is the Best credit card in UAE for SEWA Bill

Many expats working in Abu Dhabi & Dubai stay in Sharjah, use arguably the Best credit card in UAE with regards to bill payment, which easily pays SEWA BILL and this saves them time and strain, which they were going to face if they has gone physically from to Abu Dhabi & Dubai, all the way to the Sharjah Electricity and water authority deep down in Sharjah to settle their bill. SEWA authorised more than 90 banks in UAE, and financial institutions to offer credit cards which may be used for online payment of their bills. All they need to do is to choose the SEWA payment through credit card option which is found on the SEWA webpage housed under the tab SEWA bill onlineand through this option, one may see the previous balance, how much electricity and water they consumed during the period at hand, the SEWA bill payment to be made for the period, and the due date of the payment. Apply for the best credit card in UAE and also enjoy the online benefits of settling your bills in the comfort of your home. Such features on credit cards are available from finance house credit card , ADCB Credit card, just to mention a few. This is one of the major advantages of credit cards to Sharjah residents and arguably the Best credit card in UAE with regards to your SEWA Bill.

Why use Credit cards in Dubai

I have come across many clients asking the question why use Credit cards in Dubai yet I can equally live a normal life without having to get debt. This is absolutely normal in a theoretical world especially to expats coming from 3rd world countries but as you step into the first world, you realize that your bills usually show up earlier that your salary and thus credit cards are used as a reliever to unbudgeted needs which arise before salary shows up and this is the major credit card benefits in Dubai/UAE. Credit Cards are used for bill payment for example SEWA Bill When the debit cards are underfunded, and this is how credit cards earn their nickname “use now, pay later”. Credit cards are used for bill payment online and this feature alone of online bill payment is a major advantage compared to the traditional methods were one has to leave their geographical location and approach a merchant services provider to pay off their bill. This is an amazing feature housed in credit cards in Dubai

Use a credit card in Dubai for Payment

A credit card in Dubai which is gifted through e-payment may be used vastly to settle dues as and when they arise through the internet using online account payment methods. Most, if not all bill paying services have an online portal, which gives the client access to using this option be it in private institutions up to public entities, thus one may for example use their credit card in Dubai to top up their RTA NOL CARD for the monthly fixed plan or top up for daily use or it may also be used to make a du bill payment instead of approaching the Du office were you will be met by long winding queues or settling a Fewa Bill. This is of great convenience since it may be done in the comfort of your home facing a computer screen and thus , definitely makes credit card in Dubai of absolute importance to Expats and locals.

Cash against Credit Card in Dubai –easy cash credit card

Many employees do not qualify for a personal loan in UAE/Dubai, so they end up opting for Cash against credit card in Dubai and this falls under the class of easy cash credit card. This is a very simple but convenient arrangement between the Bank and its client, were the client makes a call to the bank via the call centre, and requests for part of his/her credit limit to be converted into an immediate loan which they may withdraw and pay over a given period of time, usually over 3, 6, 12, 24 or 36 months. Most Dubai banks will agree to convert up to 90%, with some banks converting up to 60% of the credit limit, and it is made available in the current account of the client for immediate use. The easy cash loans come with an installment which is higher than the salary transfer personal loan in UAE interest rate, usually easy-cash credit cards interest rates are between 0.6% and 1% per month but it varies from bank to bank. Attached to these easy cash credit card plans are 1% or AED100 pre closure fee (early settlement fee) , whichever is higher, thus one has to pay the penalty for pre-closure to the Cash against credit card in Dubai arrangement.

Credit Card

Credit Cards in Dubai UAE (United Arab Emirates) - Dubai is one of the seven emirates that form the United Arab Emirates and it is the second largest emirate after Abu Dhabi. Over the past years, Dubai has emerged to become one of the largest financial centres in the world and the largest financial hub in the Middle East. The growth of Dubai as a major financial centre has resulted in a lot of technological advancement in different sectors. In this case we will take a closer look at the use of Credit cards and anything that is related to them in the UAE.

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Credit Cards in Dubai/UAE

Credit Cards in Dubai/UAE - The use of Credit Cards be it a visa card, or mastercard has become the most popular and convenient form of payment not only in Dubai but worldwide specifically in the 1st world countries such as USA, United Kingdom, Australia to mention but a few. Credit cards have been heavily influenced by globalization which has brought about by-products such as online shopping for example which knows no borders in terms of its system of payment, so because of this there was need to make fast, reliable and more convenient payment system. It is because of this among other reasons that Credit cards have become popular worldwide. Dubai has managed to diversify its economy from the one that was heavily dependent on oil reserves to a modern one that has branched into different sectors such as Services, finance, tourism and hospitality in other words it more of an Centerport (re-exporting center) to a lot of people because of its strategic location between Asia and Europe not forgetting Africa as well. In addition, Dubai’s geographical location has attracted a lot of business and activities such as:

  • Tourism and hospitality
  • International events such as formula 1 (Circuit is in Abu Dhabi).
  • Corporate regional Headquarters’ e.g. Microsoft headquarters for Middle East and Africa is located in Dubai.
  • Logistics and distribution center
  • Banking, finance and insurance
  • Information and communications technology

Due to the above mentioned points, Dubai experiences high levels of transactions every minute involving the UAE itself and the rest of the world, so the need to achieve efficient systems of payments is greatly needed and as a result Credit cards have found good use in this economy. In other words this economy cannot function efficiently without the use of credit cards for both residents and visitors.

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Advantages & Disadvantages of Credit cards in Dubai/UAE

Advantages & Disadvantages of Credit cards in Dubai/UAE - Just like anything in life, credit cards just like personal loans, have their advantages and disadvantages but it should be noted that the latter is out weighed by the first one. This was proved by the research that was carried out in the USA which revealed that almost every family holds at least 8 credit cards. The following are the pro’s and con’s of credit cards in Dubai.

Advantages of credit cards:

  • Convenience & reliability - you can use it anywhere in the world at anytime and online as well. It also save you time of trying to pay with cash whereby you need to go the ATM first.
  • Purchase Protection - in terms of faulty purchases both the card issuer and merchant will be responsible.
  • Rewards & Perks - in the UAE you can get rewards for everyday purchases for a example with a SAMBA titanium credit card you get 50% cash back on movies tickets, 10% cash back on entertainment, 5% cash back on supermarket spends and free access into the airport lounges through the Marhaba program.
  • Borrow for free - if a cardholder uses the card well like paying back the outstanding balance within the designated time period he/she can skip interest payments. In addition to this most of the credit cards in Dubai are “free for life” which means they do not charge you annual fees.
  • Tracking and managing your expenses - you can easily track how your expenses for the month were incurred by keeping all your receipts and cross checking them with your monthly statement and in most cases any differences will be handled for you by the card issuer and merchant.
  • Building Credit history - if you use your credit card wisely it can help you have a good credit score or credit rating.
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Disadvantages of credit cards:

  • Interest charges - if you don’t pay back the money that you owe in time you will end up paying a lot of interest.
  • No interest free on cash advances - Usually on most cards there is no interest free when you withdraw cash using your credit card.
  • Rewards & Perks - if you don’t use you credit card wisely it is easy to end up in debt for example impulse buying.
  • Debt burden - having too many credit cards and having too much debt can damage your credit history.
  • Bad credit Score - you can easily track how your expenses for the month were incurred by keeping all your receipts and cross checking them with your monthly statement and in most cases any differences will be handled for you by the card issuer and merchant.
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How to use Credit Cards in Dubai/UAE

How to use Credit Cards in Dubai/UAE - Credit cards require very high levels of discipline in terms of using them so as to be able to pay the outstanding amount at the end of the month and most importantly having a good credit history. Following are some of the tips on how to use a credit card wisely:

  1. Keep track of all your purchases by monitoring all your monthly spends.
  2. Have a budget and avoid overspending which is caused by impulsive buying.
  3. Make sure that you pay end of month outstanding balances.
  4. Make purchases with reliable companies and take extra precautions when making purchases online so as to protect yourself from fraud.
  5. Report stolen cards immediately to the credit card issuer.

Last but not least always remember that a credit card is a type of loan and should be repaid at some point in time and some credit cards in UAE do not purchases prohibited items in the Islamic religion for example you cannot purchase liquor with an Islamic credit card it will automatically be declined.

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How to get a credit card in Dubai UAE

credit card in Dubai UAE - There are about 54 banks in Dubai and this figure includes both local and foreign banks. If you need a credit card you can always visit any of the bank’s website and apply for one. A credit card is usually given to a salaried employee who works for a listed company but it should be noted that some banks are now giving credit cards to employees working for unlisted companies although they will charge higher interest rate to these types of card holders as it is considered risky.

Documents required by most banks: -

  • Copy of valid passport and visa
  • Emirates ID
  • Salary certificate/pay slips (3 Months)
  • Bank Statement (3 Months)
  • Salary Certificate

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Requirements

  • Documents required for loan application

    1-Passport copy

    2-Visa copy

    3-Emirates ID front and back copies

    4-Salary certificate/3 Months Payslips

    5-Three months bank statement/Salary slips/WPS Statement

    6-Credit card copy (face)

    7-Credit card statement

    8-Security Cheque

    Loan amount 10 000-300 000 (AED)

    Salary must be minimum 4000 (AED) +

    Do you have a credit card? If so, what is the limit?

    Do you have a loan from another bank ?

    Do you have benefits at work for example accommodation, insurance, commission, bonus, overtime, transport, air-ticket or uniform?

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Requirements

  • Documents required for SME Partner-loan application

    1-Passport copy
    2-Visa copy
    3-Emirates ID front and back copies
    4-Six months bank statement
    5-Credit card copy (face)
    6-Credit card statement
    7-Memorandum of Agreement (MOA)
    8-Tenancy Contract
    9-Copies of invoices (optional,increases chance)
    Loan amount 10 000-300 000 (AED)

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