Today, credit cards have become the basic needs of most people, not only to meet daily trading needs but also to improve your lifestyle, especially in the shopping capital of the Middle East. Many credit cards also offer other benefits such as air miles, 2-in-1 movie tickets, free valet parking, and discounts at restaurants and spas. Your major move to Dubai may mean that you may buy many new things for your family and family right away, so credit cards may come in handy.
Applying for a credit card may vary from bank to bank. But the entire process is somewhat the same and if there might be a difference it won’t be a big one.
Document Needed
The following documents will be needed when you go to the bank to apply for a credit card;
- Emirates ID & original passport
- Filled in and signed the credit card application
- Residence visa
- Salary slips, certificates or bank statements from the bank where your income is transferred.
- Expats need to produce proof of UAE residence. You can bring along a rental agreement, utility bill, or title deed
Which credit card to get?
There are numerous banks in the UAE that offer credit cards with benefits and privileges. But choosing a card among all the credit cards being offered is quite difficult. So following are some factor which one should consider while choosing a credit card:
- Income: Credit cards usually have a minimum wage requirement. The bank will provide you with a different credit card based on your salary, so please conduct thorough research and find out which credit card you have the right to apply for. If you are self-employed or have no fixed income, some banks will still provide you with a credit card, provided that you are depositing a certain amount of money with their account.
- Interest Rate: You should check the interest rate of all credit cards listed. If you are unable to pay off your full payment within one month, please choose the credit card with the lowest interest rate.
- Annual fee: Depending on the card you choose, you may have to pay an annual fee. High-end cards with additional benefits usually charge a higher annual fee, so you need to ask yourself if the benefits they offer are worth the extra cost. However, some credit cards do not have an annual fee. Also, banks sometimes agree to waive the annual fee, provided that you use the bank card to spend the minimum amount set by the bank. Before you apply for a card, be sure to understand the fee structure and terms.
- Cashback and reward-based cards: Some credit cards offer various discounts or travel-related benefits, while others offer cashback based on your total monthly expenses. Think about how you expect to use your card and make the appropriate choices. If you plan to use your credit card primarily for dining, golf and entertainment purposes, it may make more sense to get a reward-based card. On the other hand, some customers prefer cash back credit cards because they use them to earn higher rewards for certain categories of expenses.
- Frequent Traveler? Some credit cards will provide you with miles based on your monthly expenses. The flight miles can be direct airline reward points or bank-specific miles, not miles that can be converted to airline miles. According to the plan, you can use airline miles to get discounts or free flights and upgrades. Also, you can use some credit cards to access the airport lounge and free airport valet parking or pick-up service. You should also check the fees that the bank charges you for using credit cards and possible foreign exchange translations in other countries.
Since a credit card is like taking cash in advance from a bank you will need to pay your credit card bills at the end of every month with the interest payments as well. The Above mentioned factors are for the process of applying for a credit card. One needs to consider some other things as well before applying for a credit card such as
- Credit Score: make sure your credit score is good. Banks look at the applicant’s credit score before giving it a credit card. Make sure you make the payments timely which will only increase your score.
- Determine your needs: Identify if you need a card or not. If your shopping pattern or cash behavior shows that you need a card then go for it otherwise it would be a liability.
- Choose wisely: The card you choose should fulfill your requirements, so carefully research the cards which you are eligible for and which fulfill your needs.
- Spend wisely: With credit card spending can go overboard and chances are you may spend more than you can afford. Although there is a spending limit on credit cards buts some banks do not keep a limit on the cards they offer. So with credit cards think and spend wisely because at the end of the month it’s you who has to pay the bills and make the interest payments.
The majority of the banks have a minimum salary requirement of AED 5,000. So what if you are earning below AED 5,000? There are some banks that offer credit cards for people earning below AED 5,000. Go to Souqalmal.com and there you can enter there criteria like your salary limit, balance transfer or cashback, and of what bank you would like to have a credit card.
This website is truly magnificent as it provides every single detail regarding the credit cards such as their profit rate, foreign exchange rate, annual fee, salary requirement, and the benefits and features the card holds. On this website, you can easily compare the credit cards of different banks and choose the one that fits you according to your requirements.
To put it in a nutshell, think carefully before signing the dotted line. It a decision which can’t be made in a hurry.