Best time to make a credit card bill payment in UAE

By: Bankbychoice.com0 comments

Credit cards provide short-term loans that come with a lot of benefits. In addition to different credit card benefits and offers, you also get bill payment advantages.

Some banks provide up to 15 days grace period for repayment of the credit card bill. These features can be beneficial and advantageous at the same time.

Understand your credit card statement

Before jumping into when and how much to pay, you should first understand how your credit card statement works.

Once in a month, your bank issues a statement that outlines a handful of things:

  • How much you charged to your card in the current billing cycle.
  • How much you still owe from your previous statement (if this isn’t 0 AED, then you will also be charged interest on the outstanding balance).
  • The total balance owing.
  • The minimum payment you must make.

A lot of financial institutes offer a grace period between 10 and 20 days to pay the credit card bill. Generally, people tend to pay back their bills within the due time.

But not everyone is certain that they will be able to make back the amount within the particular period.

If you are confused as to when it is the right time to pay back your credit card bill, then we have just the right guide for you.

Paying Off The Bill Prior To The Closing Date Of Account Statement

You can clear the credit card bill partially or completely before you get the account statement. If you have cleared the bill partially, then the rest of the amount will be updated on the account statement along with the amount that you have cleared on that month.

Clearing the credit card bill prior to the billing cycle is a great way to improve your credit score. Having a high credit card balance during the billing cycle is an indication of high credit utilization, which may impact your credit report adversely.

Paying Off The Bill After The Closing Date Of Account Statement

After the account statement has been released, the credit card company will give a grace period to the account holder. This period can range between 10 days and 20 days. When you pay during this period, you do not have to bear any late payment charges.

But bills paid after the due date can impact your credit report, which shows your credit utilization. So in the future, if you want to avail of a new loan or a new credit card, the banks will check the credit utilization before approving your application.

Paying Bill After The Due Date

You should never leave your bill repayment until after the due date. This is because the banks will charge late payment fees as well as the interest rate. Typically, the payment fee comes around 1% and 2% of the bill amount. On the other hand, the interest rate stands at a minimum of 1.95%.

The interest rates and late payment charges both differ from one bank to another. Along with having to pay additional charges, when you pay the bill after your due date, it negatively impacts your credit score. Therefore, to maintain a good credit score, make sure to pay the credit card bill in a timely manner.

Factors That You Should Be Considering When Investing In A Credit Card in UAE

The credit card has emerged as a necessity in the modern world. It does not just help in fulfilling the daily expenses but also helps in maintaining a certain lifestyle.

But when buying a credit card, you have to be extremely careful about card limits and terms and conditions. Here are some factors that will help you make an informed decision with regards to a credit card:

Understand The Document Required

When you are buying a credit card in Dubai, you need to have certain documents that include:

  • Application for credit card
  • Salary slips or banks statement of the bank where your income is credited
  • Original passport
  • Emirates ID
  • Residence Visa
  • Expats also need to produce proof of residence like title deed, rental agreement, utility bill, etc.

Cashback Cards v/s Reward-Based Cards

Some credit cards offer cashback on the overall monthly spend. On the other hand, some credit cards come with exciting offers in the UAE like travel, lifestyle, shopping and dining benefits, and discounts.

You need to assess the main purpose for which you will be using the credit card and select your preferred one accordingly.

In case you want cashback more than the rewards, then you should select a cashback credit card. Contrarily, if your goal is to use the credit card essentially for lifestyle rewards and discounts, it would be better to opt for a reward-based credit card.

Annual Fee

With a credit card, you need to pay a certain annual fee; and the amount is based on the card that you have selected. Premium credit cards allow more benefits, but they charge a high annual fee. So you need to assess whether or not the offers that these high-end cards are offering benefit you.

But some credit cards do not charge an annual fee from you and are known as free of life credit cards. In certain cases, the cardholders agree that they tend to spend above the predetermined minimum amount by the bank, and the bank may decide to remove the charged annual fee.

Interest Rate

Once you have shortlisted a couple of credit card options, then it is time to check the interest rates charged by each of them.

If you are unable to pay back the amount timely every month, then the late payment will be charged by adding the interest rate.

It is better to go for a credit card that has a low interest rate.

If in case you cannot manage to pay back timely in a month, you do not have to worry about high monthly interest.


Every credit card comes with certain eligibility criteria. There is a minimum salary requirement that you need to adhere to. Additionally, based on your salary, the bank will provide you with various credit card options.

Prior to selecting a credit card, you need to check and figure out the cards that you are eligible to get depending on the monthly income.

Certain banks provide you with credit cards even if you are self-employed or do not have a steady income as long as you have a certain amount of money in your bank account.

Credit cards allow you to avail a lot of benefits. But it is important to repay the bill in a timely manner to maintain a good credit report.

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