A Guide to Choosing a Credit Card in Dubai | ExpatWoman.com
 

A Guide to Choosing a Credit Card in Dubai

Find out the details of these 8 things before applying for a credit card in Dubai

Posted on

21 November 2017

Last updated on 22 November 2017
 A Guide to Choosing a Credit Card in Dubai

Sometimes getting through the month on your salary can be tough and you might need a bit of extra financial help to get you by. This is especially the case if you just arrived in Dubai and need to set up a new life. Between apartment deposits and furnishing, getting your EJARI connected and possibly even buying a new car, the idea of getting a credit card in Dubai can be really tempting. But is it the right choice for you?
 
Credit cards are often dished out like candies in Dubai and even though this is somewhat better now, many people are often still accepting new cards and end up burning their fingers with more debt than they can handle. Owning a credit card in Dubai is, however, not all bad. It can help you set-up and settle into your new home and sometimes even be a saving grace when you are in a tight spot.

Before taking the big leap and applying for a credit card in Dubai, consider these things:  

1. Annual Fees

All credit cards in Dubai will have an annual fee that you need to pay. Some might advertise as “no annual fees for the first year”, but this will start kicking in from the second year onwards. Be sure to thoroughly read the terms and conditions of your credit card agreement before signing anything. You can never be too safe with knowing exactly what you will need to pay for the card.

2. What Benefits Do You Want?

Each credit card will have its own package of benefits and extras that you will receive with the card. Some of the benefits can include discounted prices at certain retailers, airport lounge access, free valet parking and much more. Have a look at what benefits are available to you from different cards and decide from there which of these are important to you. You will also need to look at what are the minimum requirements for the rewards that you are interested in.

3. Interest Rates

Borrowing money seldom comes for free. Your interest rate will depend on the bank, your credit history and employment status. Your salary and the company you work for will also affect your interest rate. Don’t go for the first best rate that you find. Try different banks and negotiate a better interest rate. The higher the interest rate, the more money you will need to pay.

4. Minimum Salary

Applicants need to adhere to a basic salary requirement before the credit card in Dubai will be approved. This will differ from one bank to another and can be enquired about directly from the bank. Make sure that your salary qualifies you for the credit card before applying, else it might be rejected. Different levels of credit cards have different minimum salary requirements.

5. Other Charges

Most of us have probably stopped counting the number of people who we’ve heard of that were surprise with unexpected charges for their credit card. Be sure to carefully read through the small print of the contract to ensure that you are aware of any and all extra charges that might apply to the credit card.


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6. Credit Limit

Your credit limit is the limit of the amount that the bank agrees to give you. Ensure that you know what your credit limit is and stay as far away from it as possible. The more you owe on your credit card, the higher your minimum monthly payments are going to be. Do be careful, some banks will increase your credit limit without notifying or first confirming with you.

7. Exchange Rate

Find out what the terms and conditions and exchange rate is for your credit card in Dubai if you are planning to use it abroad. Some credit cards are easier and cheaper to use abroad than others so make sure that you have a good international spending plan if you are a frequent traveller.

8. Credit Shield

Even though we prefer not to think of this, someone will have to pay for your credit card if something happens and you most likely don’t want this burden to fall on your family. A credit shield will clear the outstanding balance of your credit card if you were to pass away or fall seriously ill. Find out what credit shields are available with the credit card you are considering to apply for.

 
 

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