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A Beginner’s Guide to Credit Cards in UAE

You may have heard your friends and relatives brag about the rewards they earned with their credit card in the UAE. You may already be aware that swiping your credit card will earn you cashbacks, air miles, and other benefits.
You should also be aware that if credit cards are not used responsibly, they may lead to crushing debt. So, how can you optimize the benefits of your credit card without falling into debt? What is the procedure for using a credit card? What is the best credit card in the UAE?

A credit card has become a necessary item for the majority of people these days. It not only meets your daily transaction needs, but it also improves your lifestyle and standard of living, especially if you live in the UAE. Many credit cards provide cardholders with a variety of perks, including Buy One, Get One movie tickets, deals on shopping and dining, air miles, spas, and much more. Here’s how to get the best credit card in the UAE in a nutshell.

How Do Credit Cards WorkCredit Card TerminologyInterest Charge and Other FeesBenefits Of Having A Credit Card

How Do Credit Cards Work In The UAE

A credit card can be thought of as a temporary loan. A credit card is not the same as a debit card.
Debit cards, as we all know, draw money from your checking account. For credit cards, though, this is not the case. Credit cards are a type of loan that you must repay each month. You incur a debt to the bank for each swipe, which you must repay within the billing period. Unlike your debit card, any charge on your credit card is reported to the credit bureau. It will assist you in establishing a credit report, whether good or poor (depending on your repayment). A credit report will assist you in securing a stronger and larger loan in the future. Now, let’s go through some words that will help you better understand how a credit card works in the UAE.

Credit Cards Terminology

Credit Limit: Your credit card’s credit limit is set by the issuer of your credit card in the UAE. The credit card limit is determined by your monthly income and credit score. Higher credit limits are associated with better credit and higher wages.
Annual Percentage Rate (APR): APR stands for Annual Percentage Rate. If you don’t pay your bill in full at the end of each billing period, you’ll be paid an interest rate.
Minimum Payment: If you are unable to pay your bill in full per month, you must make a minimum payment. It’s a small sum in contrast to your overall balance.
Due Date of the Statement: The deadline for paying your credit card bill in the UAE.
Balance: The remaining debt on your credit card is known as the balance.
Available Credit: the amount of credit left on your credit balance at the end of a billing period. If you have a credit limit of AED 1000 and have used AED 500, the remaining AED 500 is your Available Credit.
You will be fined if you do not pay the bill or the minimum sum due during the billing period. It is always a good idea to pay the whole bill if at all necessary. As it is, even a slight blunder on your part can have a long-term effect on your credit report.
Billing Cycle: The span of time over which the swipe of your credit card in the UAE is considered. It is updated once a month.

Credit cards in uae guide

What Is The Interest Charge On Credit Cards In UAE

Because of the high interest rate, most people in the UAE avoid having a credit card. However, if you pay your bill in full, you won’t have to pay even a single Dirham.
Late bill payers and the outstanding balance are typically paid interest rates.
Balance Transfer Fee: You are normally charged a fee when you transfer your balance from one credit card to another.
Cash Advance Fees: This is the charge you pay every time you use your credit card to get cash. We advise against borrowing cash because the credit card company will charge you a hefty fee each time you do so.
Late Fee: If you don’t pay the minimum amount by the due date of the statement, you will be charged a late fee.
Annual Fee: The issuer of the Credit Card in UAE charges an annual amount for the services provided with the Credit Card.
However, some of the best Credit Card in UAE comes with no annual fee. Try looking for one with no annual fee, if you are eligible.

  • Opportunity to build credit
  • Earn rewards such as cash back or miles points
  • Protection against credit card fraud
  • Free credit score information
  • No foreign transaction fees
  • Increased purchasing power
  • Not linked to checking or savings account
  • Putting a hold on a rental car or hotel room

How To Apply For Credit Card In UAE

If you want to get the best credit card in Dubai that meets all of your needs, think about the factors mentioned above before making your decision. Pick the credit card of your choosing after thoroughly evaluating them, and enjoy the perks and advantages it provides. However, a credit card proves to be extremely useful, A credit card can be very useful, but you must make sure that you pay your bills on time to avoid being in debt. Applying for a credit card is simple. Just click the button below and submit the form, Once you have completed the submission, one of our credit card expert will contact you and assist your Inquiry.