Credit cards are a commonly used mode of payment in the UAE. Issued by banks, credit cards allow the person to borrow funds to spend on expenses, goods and services, based on a pre-approved limit. They also offer the cardholder the ability to pay for them later, either in monthly instalments or in one go.
Using a credit card also offers additional security. In situations where the individual falls victim to fraud or scam, a report can be filed, to ensure money is not lost. After investigations are conducted, the money can then be refunded back into the card, which cannot typically be done through payments made on a debit card.
With credit cards, the person has to pay a minimum amount every month which includes interest or can pay the total amount in full, gaining the benefits of the credit card without paying interest, as per the agreement with the bank of choice.
Paying off credit cards is an important aspect, as missing monthly payments or paying off less than the minimum required each month, can affect a person's credit score, that appear on the credit reports created by Al Etihad Credit Bureau.
A credit score is a three-digit number, that can range from 300 to 900, with over 700 considered as a good score, and anything below 400 not a good one. Individuals should check their credit score before applying for a credit card, to make sure they have a good score, and avoid rejection.
It is important to note that credit cards are not substitutes for making payments, and need to be paid off within the timeframe set by the bank. Individuals that do not pay the amount required on time are liable for more charges, increasing the amount they owe, and sometimes making it difficult to manage spending. Additionally, paying off credit cards before the due date, gives the cardholder added benefits, including increasing their credit score.
To qualify for a credit card, the person needs to receive a minimum salary, as set by the bank for each credit card, and only then, can apply for one.
With so many to choose from, each credit card has a variety of benefits that provide the user with added value, ranging from cashback on daily spending, points from airline carriers and discounts on recreational activities.
Here are some great credit cards to check out for amazing benefits that cover a variety of requirements:
As the UAE is a travel hub with some of the biggest airlines in the world, connecting to many locations around the globe, many people are regular travellers.
By using credit cards for daily spends, can help in building up points from leading airlines in the UAE, that can be redeemed against future flight tickets. Some credit cards issued by local banks provide the cardholder points for the Dubai-based carrier Emirates Airline, and Etihad Airways, the Abu Dhabi-based airline.
Emirates Skywards Points: Emirates Skywards points mount up every time a flight is taken with Emirates Airline, flydubai or partners of the Dubai-based airlines. Spending on dedicated credit cards, rack up additional points, which can be redeemed to get discounts while purchasing tickets. Here are some cards to consider for additional Emirates Skywards points:
Emirates Islamic Skywards Signature Credit Card: Through the Emirates Islamic Bank credit card, individuals will get 0.75 miles for every $1 spent in the UAE, 1.1 miles for $1 spent internationally, and 1.5 miles for $1 spent on Emirates or flydubai flights. Additionally, users can get complimentary access to certain airport lounges and 15% off Emaar attractions. The minimum salary to qualify for this card is Dhs 12,000.
RAKBANK Emirates Skywards World Elite Mastercard Credit Card: With the RAKBANK credit card, on a monthly spend of Dhs 2,000 to Dhs 4,999, users will get around 600 Emirates Skywards miles, and 2,000 miles will be received on spends of Dhs 10,000 to Dhs 19,999. On spending Dhs 20,000 to 29,000, cardholders will get 5,000 Emirates Skywards miles, and 8,000 miles on spending between Dhs 30,000 to Dhs 39,000. The minimum salary to qualify for this card is Dhs 25,000.
Emirates NBD Skywards Infinite Credit Card: On successfully applying for an Emirates NBD credit card, users will get up to 100,000 bonus Emirates Skywards miles and complimentary Rotana rewards for a year. Also, receive complimentary Emirates Skywards silver membership upgrade, which allows access to the Business Class Lounge, along with points of 1 mile for each $1 spent domestically, 1.5 miles on international spends of $1, and 2 miles on $1 spent on Emirates and flydubai tickets, as well as at Dubai Duty Free. The minimum salary to qualify for this card is Dhs Dhs 30,000.
Etihad Guest Points: For individuals that frequently fly with Etihad Airways, racking up Etihad Guest points helps get discounts while purchasing tickets for Etihad Airways flights and over 20 other flight partners. Here are some great credit cards to look at:
FAB Etihad Guest Infinite Credit Card: Individuals on successfully applying for a FAB credit card will receive 55,000 bonus Etihad Guest points. On buying tickets from Etihad Airways or through the partner airlines, users will also receive double Etihad Guest miles. The minimum salary to qualify for this card is Dhs 30,000.
Emirates NBD Etihad Guest Visa Elevate Credit Card: Emirates NBD credit cardholders, on joining will get a welcome offer of up to 200,000 Etihad Guest miles, as well as complimentary airport lounge access through LoungeKey. People using the credit card will get 10 miles on a Dhs 10 spend on Etihad Airways tickets, hotels and dining, and 6 miles on other payments. The minimum salary to qualify for this card is Dhs 35,000.
ADCB Etihad Guest Infinite Credit Card: With the ADCB credit card, UAE Nationals get 150,000 promotional miles on joining, and UAE residents receive 120,000 miles, and need to maintain a minimum spend of Dhs 75,000, within the first 90 days from getting the credit card. The minimum salary to qualify for this card is Dhs 40,000.
Cashback: Credit cards with cashback rewards are a good option when choosing a credit card, as it gives the user a small percentage of money back on spends at retail stores and restaurants, as well as on groceries and other purchases made throughout the month. Here are some credit cards that offer cardholders cashback on purchases:
Mashreq Cashback Credit Card: Users can get Dhs 500 cashback on spends of Dhs 4,500, within the first two months while using the Mashreq credit card. Additionally, individuals can get 5% cashback by making payments with a credit card on dining. The minimum salary to qualify for this card is Dhs 5,000.
ADCB 365 Cashback Credit Card: People using the ADCB credit card can receive of 6% cashback on dining and online purchases, 5% on groceries, 3% on fuel, telecom services and salik, as well as 1% cashback on retail spends. The minimum salary to qualify for this card is Dhs 5,000.
HSBC Cashback Credit Card: With the HSBC credit card, individuals after spending Dhs 8,000 within the first 60 days, will receive Dhs 500 cashback, and also benefit from 5% cashback on daily spends. The minimum salary to qualify for this card is Dhs 10,000.
There are some credit cards that are great to have when looking for offers at various entertainment spots. Certain Standard Chartered, ADCB and HSBC credit cards offer users a buy one get one free deal on VOX Cinema tickets. While planning to watch a movie at Reel Cinemas, credit cards from Arab Bank, Emirates NBD, HSBC and Standard Chartered also provide the cardholder with a buy one, get one free offer.
Additionally, the Emirates NBD U by Emaar Family Credit Card offers a 30% discount on various leisure destinations including The Dubai Underwater Zoo, Kidzania and Dubai Ice Rink. Cardholders can earn Upoints, which can be redeemed at stores in Emaar malls.
People that are looking to find a credit card that offers additional incentives on groceries and shopping, can apply for the Emirates NBD LuLu 24/7 Titanium Credit Card, where cardholders will receive 3.5% LuLu points redeemable at LuLu stores and online spends. Additionally, the Mashreq noon Credit Card offers 5% cashback on noon, noon Grocery, NowNow and Sivvi spends.
Credit cards are a great way to get benefits from cashback to points on day-to-day spends, however, it is important to remember that they need to be paid off every month, to avoid building overdue payments and to maintain a good credit score.