Credit cards come in all different shapes and sizes. Here are 6 things to consider before getting a credit card in the UAE
1 November 2020| Last updated on 25 November 2020
We've comprised a list of 6 things to consider before approaching your lender...
Most of us need a credit card at one time or another, and it doesn't have to be a daunting experience to apply for one. In the UAE, they come in multiple options to suit each user, lifestyle and their financial situation.
Understanding what credit cards are available and what your lifestyle is like will make it easier to get the credit card you need.
Be sure to ask yourself these six important questions before you go ahead and choose the credit card for you.
1. What are my spending habits?
One of the first questions you should ask yourself before applying for a credit card is, "What are my spending habits?"
Identify where and how do you spend most of your money on, such as grocery shopping, on car fuel, frequent travels, etc.
Doing so will help you make an informed decision when choosing the most rewarding credit card for you in the UAE.
Understanding your spending habits will let you know if you need a cashback credit card that offers cashback on your everyday spending, or if you're best suited for a premium credit card that offers great deals on travelling.
2. Does the credit card have Installment plans?
It's important to consider any future high monetary spending on your credit card. If you plan on making big purchases, such as splurging on the latest laptop or paying for your child's tuition fees, you'd want to consider a credit card with installment offers.
There are many credit cards with installment plans, so you'd want to compare their benefits while browsing for the best one for you.
If you want to break down your purchase into multiple smaller installments, there are some credit cards offering this option as well.
3. What benefits can I get from the credit card?
The most unique thing about credit cards are the offers, rewards and discounts they can give you.
Do check out if the special offers featured in the credit card you're eying will be a great match for your interests, usage and lifestyle. For example, if you pay for most of your purchases through a credit card, a Citi Cashback credit card would be very useful as you can earn cashback on your local spending.
If you're a frequent traveller, then an Emirates Citibank Ultima or Ultimate credit card will help you save money, reduce the strain on flight finances, and even convert your everyday spends into fabulous rewards such as seat upgrades and flights.
4. Which credit cards can I qualify for?
After you’ve done all the research on the why, what and how, the next thing you need to check is if it's relevant to your eligibility and repaying capacity.
The good news is that credit cards cater to a wide variety of income groups. To check your eligibility, lenders assess your salary and professional details while processing your credit card application.
While comparing credit cards, we recommend that you always look at each one's eligibility criteria so you can boost your chances of getting approved for the card you want.
Your credit score is a three-digit number based on your personal and financial information, reflecting your credit risk or the likelihood that you will pay your bills on time. It plays a significant role in your credibility when applying for a credit card.
A high credit score will improve your chances of getting approved for the credit card you want. If you're unsure about it, it's best to build a good credit score first.
6. Which credit card will best define my lifestyle?
Know your lifestyle so you can choose the best credit card to compliment it. Understanding your card usage can play a big part in terms of savings.
Do you spend a lot of your time travelling? If the answer is "yes", then travel credit cards or other cards offering benefits on international expenses would be best suited for you.
On the flip side, if you usually stay in the UAE and spend your weekends shopping or enjoying local leisurely activities, a cashback credit card or a reward credit card will be the better choice. You can easily earn rewards, cashback and other benefits such as shopping discounts and free movie tickets.