You may have opted to live and work in the United Arab Emirates (UAE) and would like to get a UAE credit card. However, before you get attracted by the perks that come along with such cards, you need to take a good look (not just a peek!) at what you will be signing up for. Just like with any other financial decision, you will be faced with options and you need to pick what is best for you. Read on for some tips to help you apply for a UAE credit card.
Applying for a UAE Credit Card
A credit card can really come in handy. It can help you to plan your finances and achieve your financial goals. Life in the UAE will also require that you use a UAE card in your transactions. You may also need some funds available and a credit card will come in handy in such circumstances. Here are some tips to help you apply for a UAE credit card:
Know and Understand the Interest Rate
You need to take a keen interest in knowing the terms of the credit card, the interest rate in specific. Know if the interest rate specified is an annual or monthly rate. Also, determine if it will be within your financial capacity to pay off the interest on the amount that you will spend on credit. Remember, your expenses should not exceed your budget and income. To achieve your financial goals, you will have to live within your means.
Free-For-Life Credit Card
Most banks in the UAE are known to offer free-for-life credit cards. However, you need to do due diligence on your part to determine if the no annual fee offer is actually free-for-life or if this applies to the first year only. Some cards, like the Citibank’s Cashback Credit Card might offer to wipe away fees in the second year, if you make qualifying purchases.
Understand Features
Having and using a UAE credit card will offer you many benefits. These include a better credit score, access to rewards, lower interest rates, and no annual fees. As you make your choice, you need to determine which financial need is greater for you.
Many of the UAE Credit Cards will offer a cash back percentage on daily purchases, especially grocery and car expenses. A lot of them also offer discounts for movie theaters, golfing, and vacation experiences. Pick a credit card that has associated perks that will suit you best.
If you’re not sure how to decide, look at which category the bulk of your expenses are in. Select a card that will help you save money in that area and achieve goal related to managing those expenses. For example, if you have higher monthly expenses for your clothing budget you could apply for the Value+ Credit Card with ADIB, which gives you rewards through mall vouchers. You could also select a card that offers cashback or reward programs that lets you redeem points in your favorite stores.
Check the Fine Print
We know that you have heard this before- Yes, the devil is in the details. Therefore, you need to closely read the fine details and ensure that the financial provider makes all the terms and conditions clear. The perks associated with UAE credit cards may seem attractive but you also need to know at what cost they come. Make sure that there are no hidden costs or caveats that you will be signing up yourself to. For example, many UAE cards require a monthly credit amount. The Deem Miles Up cards, for example, require different monthly income amounts for their applicants with a minimum of AED 5,000.
Get the Best UAE Credit Card
We hope that these tips to help you apply for a UAE credit card will guide you as you make your choice. As always, be keen about looking into the details and know what you will be signing up for. Make good decisions that will enable you to achieve your financial goals.
