8 Tips to Compare & Choose the Best Credit Card for You in UAE
Before you apply for a credit card, it is important to compare credit cards. The types of credit cards offered by the financial institutions in the UAE comes with different features. Some are free while others come with an annual fee. Every credit card has its own set of pros and cons. Hence, it becomes necessary to compare credit cards. Thankfully, you can easily compare credit cards UAE online.
However, if you are having trouble with choosing your credit card, here are a few tips to help you out.
- Interest Rates- One of the most important factor when choosing a credit card is the monthly interest rates. Financial institutions lure customers with the promise of low interest rates, hence the interest rates might seem low at a glance. However, when you add those monthly interest rates annually, it will turn up high. That is why negotiate with the bank and make sure to get the lowest interest rate possible. Or you can look for the financial institution that provides the lowest interest rate. Also, the financial institutions in the UAE are Sharia compliant. Therefore, they don’t charge interest on the remaining balance. Consider that before applying for the credit card.
- Minimum Salary- Minimum salary is important when it comes to credit card eligibility. Although financial institutions offer a credit card for free in the UAE, the minimum salary is required to get a credit card. The lowest minimum salary required in the UAE is AED 5000. However, there are some financial institutions that require a minimum salary of AED 30,000 or more. Therefore, if you don’t earn AED 5000 per month, it becomes almost impossible to get a credit card.
- Charges and Fees- Credit card comes with a handful of charges. These include the annual fees and other related charges. While some credit cards are offered for free in the UAE, most come with an annual fee. The annual fee can range anywhere between AED 250 to AED 10,000, depending on the type of card. Along with the annual fee comes the late fee, the balance transfer fee, the cash withdrawal fee, etc. Make sure to check the fine print for any additional charges.
- Benefits and Rewards- The best part of having a credit card is the reward that comes with the frequency of card swiping. The rewards can be in the form of cashback, skywards miles, etc. The different card offers different rewards. For example, Credit cards like Citibank Citi Premier offer the best travel rewards. While Emirates NBD Credit Cards have the best skyward miles
- Know Your Spending Habit- As stated above, reward and benefits are different for every credit card. Hence, it is important to know where you are going to use your credit card mostly. Depending on the type of purchases you mostly make, you should opt for the one that benefits you the most. If you are going to use your credit card for shopping or supermarkets mostly, choose a Cashback Credit Card.
- International Purchases- For people who travel abroad a lot or make international purchases, it is advised to check the usage rate. Confirm with the bank the rates for international purchases. As it is, financial institutions charge for every purchase made abroad. Some financial institutions charge 2 to 3% of the purchase. Also, limit your cash withdrawal abroad. Every cash withdrawal has a processing fee, which is higher than the usual.
- Interest-free Days- There are some financial institutions in the UAE that offer 3 months of interest-free days. However, to avail that offer, the bill should be paid on time. This offer stands for the first 3 months only. Check on that while comparing credit cards.
- Credit Shield- Credit shield is a type of insurance for your credit card. This is for the time when you are unable to pay your bill due to an unfortunate incident. However, the credit shield comes with a price. It is not free. Therefore, if you feel that you don’t need it, you can deactivate the credit shield.
Some other Tips to Consider While Comparing and Choosing a Credit Card are:
- Affordability- Before you apply for a credit card, consider whether you can afford it. Credit card is not easy to afford. Sometimes, even earning a good income is not enough to keep you out of debt. Understand that credit card comes with its own set of terms. The fees and charges can be more than you expected.
- Credit Limit- The credit limit of the credit cards are usually set at 3 times the monthly income. People tend to get carried away with the credit card. So, if you are not confident about keeping your purchases under control, lower your credit limit.
Over to You
Choosing your first credit card can be a daunting task. However, if you follow the tips given above, choosing a credit card won’t be difficult. All you have to do is compare credit cards UAE considering the relevant parameters!