Credit Card Application and Approval Process in the UAE

By Kapil Dwivedi
  | Published: 31 January 2020 | Last Updated On: 12 February 2021
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Credit card in UAE has managed to make a place in almost every pocket and wallet. Some of you might disagree but credit cards have become an inseparable part of our day to day lives. Credit cards in UAE are an absolute boon that helps individuals to manage their expenses efficiently.

Easy access to banking services has made it even easier to get a credit card these days. However, credit card providers and financial institutions consider several factors before approving credit card application requests. If you are planning to apply for a credit card in UAE this article will help you to gain a firm understanding of the application and approval process. Moreover, we will be covering common reasons that might lead to rejection of your credit card application request.

Eligibility criteria for Credit Cards in UAE

Before beginning the application process for a credit card in UAE it is necessary to be aware of all the parameters of the eligibility criteria. Eligibility criteria for credit cards in UAE vary from bank to bank and provider to provider. However, in order to get a credit card, an applicant must meet all the parameters mentioned by the provider and the bank.

Eligibility criteria typically include age, minimum monthly income and identification proofs to verify applicant’s citizenship. The majority of credit card providers have a minimum age bracket of 21 years to apply for a credit card in UAE. Furthermore, the threshold monthly income to apply for a credit card in UAE is AED 5000 which might vary for different providers.

Documents Required for Application Process

To complete your credit card application the following documents have to be submitted to the credit card provider and the financial institution.

For salaried employees:

  • Proof of identity/passport
  • Emirates ID and valid residence visa
  • Monthly salary certificates
  • Bank statements

For self-employed:

  • Proof of identity/passport
  • Trading certificates
  • Emirates ID and valid residence visa
  • Bank statements

Several web aggregators have come up with online application services that allow applicants to carry out one hundred percent paperless application.

Approval Process

Once you are done with the application process followed by the submission of the required documents. Officers from bank and credit card companies validate and verify your documents to check their authenticity.

The primary factor that plays a crucial role in determining that your credit card application request is accepted is your credit score. A credit rating or score is an indicator of your punctuality in making repayments and denotes your creditworthiness. The official body responsible for providing credit rating of residents in UAE is Al Etihad Credit Bureau (AECB). Al Etihad Credit Bureau collects financial information from multiple potential sources and publishes a report periodically. The basic purpose of checking the credit score of an applicant before approving their application request is to assess the loan repayment capacity of an individual.

The credit score lies between 300 to 700 points. The higher your credit score, the higher is the probability of getting your loan approved. Typically credit rating of 700 or above is considered a good score and applicants falling this category do not struggle to get loans and credit cards approved. However, if your credit score is less than 700 points you should focus on improving it.

Once Credit Card Company and the bank verify your credit rating, a final review of your financial portfolio is carried out. The bank approves or rejects your application after the reassessment.

If your credit score and documents are satisfactory the credit card provider and the bank will likely approve your application request. After approval of your application bank will set a credit limit based on your income and credit rating.

Last but not the least after this the bank notifies the applicant that their application has been accepted and the card is dispatched from the provider’s end for delivery.

Common Reasons for Application Rejection

There are several reasons due to which your credit card application request in UAE may be declined. Here’s a quick rundown on the potential reasons that may lead to rejection of your credit card application-

  • The foremost reason that is responsible for the majority of application rejections is an unsatisfactory credit score.
  • If your monthly income is less than the threshold income mentioned by the credit card provider then your application will be rejected.
  • Outstanding debts under the name of the applicant increase the probability of rejection. This is mainly since outstanding debts have a negative impression on the providers and banks which might lead to rejection.

Conclusion

Although it is very easy to get the best credit card in UAE, it is always recommended that before making any decision related to financial savings and investments applicants should properly research the market to get the best available card or tool that fulfils all their needs and requirements.