Credit Cards

Launched exclusively in the US in the year 1958, Bank of America developed the first modern credit card. This was soon followed by the launch of the first credit card outside America, in the UK approximately in the year 1966, by Barclaycard. Credit cards in UAE took a while to gain popularity. But once they did, adoption rates soared exponentially.

Then came the question of standardization. Whether one was using a credit card in Dubai or using it anywhere else in the world, changes to the account balance would have to be consistent. This lead to the creation of payment networks which are categorized into four major categories:

1. Visa
2. MasterCard
3. Discover
4. American Express

Often, people confuse these payment networks for credit cards. However, it is important to know that payment networks simply facilitate the transactions between a merchant and cardholder. For example, a Citibank credit card in UAE may use a Visa payment network, or a MasterCard one. But, the fees and interest applicable to the credit card would still be paid to Citibank, not to Visa or MasterCard.

Soon after the launch of credit cards, came ATM technology. The earliest cash dispensing machine was developed in 1967 by Barclays Bank. ATM machines further required standardization of credit card dimensions, which is how we finally landed at an 85.60mm X 53.98mm size. Conduct as many credit card comparisons in UAE as you would like and you are sure to come up with the same dimensions every time.

The influx of credit cards in Dubai has left customers with many questions, such as:

• Which is the best credit card in Dubai?
• Where can I compare credit cards in UAE?
• What credit card offers in UAE help me save the most?
• Should I go to a branch for a credit card or apply online?
• Do online credit card applications hold any extra advantage?
• Does applying for a credit card in Dubai offer any exclusive benefit?
• What are the fees and charges levied for credit cards in Dubai?
• What credit card offers in UAE will I get from the most exclusive credit card in Dubai?
• Can I use my credit card in Dubai for cash withdrawals as well?
• Do online credit card transactions earn any reward points?
• Are online credit card transactions safe?
• What features do online credit card portals offer?

For the A-Z on the best credit cards in Dubai, online credit card processes and everything credit card related, just read on.

Features & Benefits of Credit Cards

When an individual is looking for the best credit card in UAE, it is important not to rush the selection process. They ought to know the various features and terms associated with the credit card before they make the final decision. Conduct a thorough credit card comparisons in UAE based on these features and benefits helps to come across the best credit card. Here are some features and benefits to keep in mind for searching the best credit cards.

• Types of Credit Cards - There are different types of credit cards in UAE, each caters to a different type of accountholder. In order to understand which one suits the requirements and consequently pick the best credit card offers in UAE, it is important to familiarize yourself with the various categories to better.

Here are the different types of credit cards offered in UAE:

• Basic Credit Cards
• Balance Transfer Credit Cards
• Rewards Credit Cards
• Premium Credit Cards
• Retail Credit Cards
• Secured Credit Cards
• Charge Cards

Mentioned below is the detailed explanation of the different types of credit cards in UAE. The applicants can opt for one after making credit card comparisons in UAE.

• The Credit Limit - The defining characteristic of a credit card is its credit limit. The credit limit is the maximum amount of money the cardholder can spend using the credit card. This limit can vary depending on the card account holder opts for. The best credit cards offer the maximum credit limit. Banks offer different types of credit cards in UAE. Different cards attract a different rate of interest, late fees, etc. It is important to compare credit cards in UAE on the basis of this factor.

Note- Some credit cards have a variable spending limit. The limit is decided according to the spending power of the account holder rather than a pre-fixed limit.

• Grace Period - The grace period of a specific credit card can be found in the credit document. The grace period is the period of time the cardholder is given to pay back the credit card bill, including interest (if any). Not paying the credit card bill within the grace period makes the cardholder a defaulter. As a result, they have to pay heavy fines and/or an increased rate of interest.

Note- Before you apply for a credit card, read the terms and conditions carefully.

• Annual Percentage Rate - It is the rate of interest on the amount the credit card holder has to pay after the expiry of the grace period. Not clearing the dues during grace period makes a cardholder a defaulter. It can increase the annual percentage rate payable by a cardholder. Some credit cards in UAE have a variable annual percentage rate, which can change multiple times in a year. In case there is any change in the annual percentage rate, the cardholder will be notified by the bank.

The account holder must compare credit cards on the basis of an annual percentage rate.

• Annual Fees - Credit card fees, also known as annual membership fees are charged for the privilege of using the credit card. The credit card benefits can be availed after paying the annual fees. Typically, the higher the credit limit is the higher the annual membership fee will be charged. If the account holder spends a fixed minimum amount per year using the card, certain credit cards in UAE don’t attract any annual fees. These may often be referred to as free credit cards in UAE or as fee-free credit cards. While the cards do not attract any annual membership fees, interest is charged on the borrowed amounts (typically from the day of the transaction itself).
• Offered Benefits - Credit cards in UAE also offer some spectacular benefits. These benefits are offered through loyalty programs. Under these programs, the credit card holder earns points when they use the credit card for a purchase. The points can be redeemed for amazing rewards as per the terms and conditions.

Note- Most of these credit card benefits are not applicable to free credit cards. It is a good idea to compare credit cards in UAE on basis of the offered benefits as well. 

Here are some of the most commonly offered benefits:

• Cash Back - Every time the account holder makes a transaction using a credit card, they earn reward points. These reward points can then be redeemed as cash, which is credited directly into their account. Some credit cards in UAE offers cash back benefits cards. These cash back cards offer a return on every single transaction made using the card. While making any credit card comparisons in UAE, the account holder must keep these card-specific benefits in mind.
• Air Miles - For the cardholders who fly a lot, whether for business or for pleasure, the air miles is the most beneficial feature a credit card offers. Some of the best credit cards in UAE reward the cardholder with air miles per unit of currency spent (which is usually higher on foreign currency). These miles can be redeemed on booking flight tickets, flight tickets upgrade from economy to business or business to first class and even for shopping at select venues.
• Airport Lounge Access - The cardholders can spend their waiting time at an airport in luxurious lounges across thousands of locations with certain credit cards. Depending on which credit card in UAE the cardholder has opted for, the may also be entitled to bring a guest along. The account holders can compare credit cards to find one which offers lounge access to the nearby airport, as it will be probably be utilized the most.
• Cinema Offers - Many credit card offers ‘buy one- get one free’ schemes to the cardholders. It let the cardholder avail complimentary movie tickets. The card offers exclusive benefits for the cardholders who are avid movie-goers. If the account holder wishes to apply for a credit card through the bank’s website, they ought to check the benefits offered in details at the individual product page.
• Golf Benefits - UAE is home to some of the most stunning golf courses in the world. By opting for gold benefits credit card, the account holders can avail the golf benefits. Depending on the opted credit card in UAE, the cardholder can access the manicured greens at prestigious golfing locations across the country. However, if the account holder is not an avid golfer, it is advised to compare credit cards and zero down on the one with the other benefits instead.
• Travel Gains - For well-travelled accountholders, best credit card in UAE is the one that offers travel benefits. Starting from cash backs on world booking -class hotel all over the world, these credit card benefits also let the cardholders rack up reward points overnight on hotel stays and avail amazing deals on international events and cuisine.  Furthermore, travel benefits may also include discounted car rentals and complimentary travel insurance.
• Rewards & Offers - From discounts on high-end gourmet meals to promotions on furniture and grocery shopping, many credit cards in UAE offer an impressive variety of spending options and extremely flexible reward systems. These rewards and offers are updated regularly to so that the cardholders can make best of their cards. If the cardholder wants, they can use the reward points to redeem the annual membership fee of the credit card.
• Security Advantage - In order to monitor and protect all the issued credit cards in UAE, early warning fraud detection programs are a must for every bank. Most banks also offer a zero liability policy on lost credit cards. It ensures that cardholders do not have to bear charges on lost or stolen cards.
• Purchase Protection - The benefit of purchase protection is offered on a few credit cards. Such credit cards offer coverage for new purchases in case any newly purchased item is damaged or stolen within a certain period of time from the date of purchase. The damaged/ stolen good is either replaced or reimbursed for the full value, as per the bill.

Type of Credit Cards

Banks charge a certain percentage of a commission on a transaction made using the credit card. In return, the bank offers the cardholder rewards and loyalty points as per the applicable terms and conditions. In order to cater to accountholders from different income brackets, banks offer a variety of credit card, each with its own eligibility criteria and credit limit. From free credit cards in UAE to premium ones, credit cards in UAE generally fall under one of the following types:

• Basic Credit Cards - As the simplest type of credit card in UAE, these cards offer the cardholder no additional rewards or incentives. Instead, the basic credit card attracts a low rate of interest and annual membership fees.

Note- Basic credit card is often confused as free credit cards in UAE.

• Balance Transfer Credit Cards - Annual Percentage Rates (APR) plays a key role in the case of balance transfer credit cards. Let us take the example of a cardholder who has exceeded their grace period. Now they owe the bank a certain amount of money which is known as debt. This debt is further increased by the APR, which comes into effect after the expiry of the grace period. If the cardholder were to then compare credit cards in UAE, they might find another credit card with a much lower APR.

Transferring the remaining debt to this other card could not only mean saving a large amount on interest but also allow the customer to merge all debt into a single account and thus make it easier to manage. This is what we call a balance transfer credit card. Note that certain credit cards in UAE charge a transfer fee, which is a specified percentage of the total transfer amount.

• Rewards Credit Cards - As the name suggests, the rewards credit card awards the cardholder for using the credit card for purchases. These credit card benefits could be in the form of discounts and offers on restaurant and hotel bookings. Additionally, some of the best credit cards in UAE even offer air miles. Typically, the banks offer a fixed amount of points per unit of currency spent using the credit card. These points can be redeemed for rewards and benefits.
• Premium Credit Cards - Offering enhanced benefits, premium credit cards are preferred by high earning accountholders. Premium credit cards come with high annual membership fees. It offers a higher credit limit and a host of first-class benefits such as travel insurance, airport lounge access and concierge services to name a few.

 The full benefits of such a credit card are usually unlocked only after spending a pre-decided amount per year. This is why premium credit cards are commonly opted by high earning accountholders. As one of the best credit cards available, a good credit history is a pre-requisite to opt for these cards.

• Retail Credit Cards - Retail credit cards, also known as store credit cards, are offered across a number of stores in UAE. The retail credit cards in UAE offer amazing discounts within the store and on the online e-commerce platform as well. Besides high discounted rates on products, retail credit cards also provide a great way to build a good credit history. Their basic eligibility criteria make it very easy to obtain.
• Secured Credit Cards - For a cardholder with poor credit history, a secured credit card offers an effective way to build good credit. While they function exactly as a normal credit card does, the only difference is collateral. Cardholders need to deposit a collateral amount in order to get the credit card in order to enjoy the credit card benefits. The credit limit is set according to the accountholder’s prior credit history and the amount of money deposited as collateral. If the cardholder is unable to pay off the balance amount, this deposit is seized by the bank. If a cardholder maintains a good track record, the collateral amount is refunded. Additionally, the credit limit may be increased.
• Charge Cards - Offered only for the accountholders having an excellent credit history, a charge card is a very unique type of credit card. Usually, the card is offered by only a few banks. Unlike traditional credit cards in UAE, the charge card doesn’t attract any interest rate. It is because charge cardholders need to pay off the entire balance at the end of every month. Cardholders who are unable to pay the balance have to pay a high The credit limit on a charge card is calculated on the basis of the accountholder’s prior credit history. Charge cards do not offer balance transfers but might offer rewards such as rental car insurance and purchase protection.

Every cardholder has their own individual requirements. The best credit cards enable cardholders to save through various credit card offers in UAE and overseas, without having to spend a high amount of money on fees and interest.

Eligibility Criteria

In order to opt for a credit card, it is a must for the account holder to meet the eligibility criteria.  Banks thoroughly consider several factors before offering a credit card to the account holder. The following factors could affect the chances of an account holder of qualifying for a credit card in UAE:

• Age - When it comes to being eligible for a credit card in UAE, age is an important factor. Most banks offer credit cards to the applicants between the age of 21 years to 60 years. But it is still possible to get a credit card as early as 18 if the applicant can show a source of independent income. Applicants under the age of 18 years require a legal guardian to co-sign their application.
• Income - The applicant cannot obtain a credit card in UAE without showing a source of income when they apply for a credit card. Monthly income also determines which credit cards an applicant can qualify for.
• Credit History - While it is possible for applicants with low credit scores to obtain a credit card, they will be given very limited options such as that of fee-free credit cards. In order to qualify for the best credit cards in UAE, it is a must to have an impeccable credit history. Simply put, an applicant with the best credit history will get the best credit card offers in UAE.
  
  
• ID Proof - A valid ID proof is an essential requirement for credit card Local residents must show their Emirates ID, while immigrants must show relevant documents such as passport and visa.
• Address Proof - When it comes to applying for a credit card, address proof is a must. Some banks may even reject the application of account holders living in isolated places with little connectivity.
• Nationality - Certain credit cards in UAE are offered exclusively for UAE nationals. In such cases, nationality also becomes a criterion for eligibility. Moreover, even the emirate an applicant resides in can make an impact on the application. For example, for a credit card in Dubai, online credit card applications may be favoured more as compared to those in other emirates.

Note- The best credit cards in Dubai and the rest of UAE have the strictest eligibility criteria. To increase the chances of eligibility for the best credit card offers in UAE, the applicants ought to maintain a good credit history and bank balance.

Top UAE Banks for Credit Cards

Mentioned below is the list of banks offering credit cards in UAE. Before zeroing down on a credit card, compare credit cards in UAE.

1. Citibank - Even before entering the credit card market, Citibank was a proud owner to a host of accolades in the world of finance. Founded in the year 1812, this illustrious bank was initially known as the City Bank of New York. Today, Citibank has over 2,600 branches, spread across 19 countries all over the globe. The Citibank UAE credit card was introduced as early as the year 1964 when the first Citibank branch was opened in the Dubai International Financial Centre (DIFC).
   
   Known as a customer-first organization, Citibank was one of the first US banks to implement ATM technology, allowing its customers around the clock access to their funds. Furthermore, the Citibank UAE credit card was also the first in UAE to offer customers a chance to earn travel miles. Currently, Citibank is the largest issuer of credit cards in the world, with global influence in over 90 countries.
2. Commercial Bank of Dubai - Founded in the coastal paradise of Deira, Dubai, the Commercial Bank of Dubai is known for its brilliantly and tactical investment strategies and as an issuer of some of the best credit cards in Dubai. Currently, having $10 billion in assets, CBD is ranked as the 35^th largest bank in the Persian Gulf. CBD is listed in the Dubai Financial Market index as DFM: CBD, and is a leading issuer of credit cards in UAE.
   
   What initially started as a joint venture between Chase Manhattan Bank, Commercial Bank of Kuwait and Commerzbank in the year 1969 by decree of the late Rashid Bin Saeed Al Maktoum, the Commercial Bank of Dubai turned into a national public shareholding by 1982. 80% of CBD’s shares lie with UAE nationals, while the remaining 20% is owned by the Dubai Government led Investment Corporation of Dubai. CBD now aims to conquer the fields of SME finance, retail banking and Islamic banking. Attijari Al-Islami, the sharia-compliant banking division of CBD was launched in 2008. With over 200,000 credit card customers alone, CBD’s range of credit cards in UAE is expected to further expand in 2019.

The banks mentioned above have consistently provided customers with the best credit cards and credit card offers in UAE, maintaining low interests and annual fees. While the Commercial Bank of Dubai started off as issuing credit cards in Dubai exclusively, it has amassed a global following over the last decade. Whereas, Citibank’s online credit cards offer great incentives for customers all over the world.

Which Credit Cards are you Eligible for?

While everyone wants the best credit card in UAE, not everyone is eligible for the same. Credit cards in UAE are offered on basis of a minimum monthly salary. Let us take a look at some viable credit cards, filtered by the different brackets of monthly salary.

How Apply for a Credit Card in the UAE?

One can apply for a credit card in UAE in one of two ways; either by visiting a branch of the preferred credit card provider or through the bank’s online portal (if available). The best way to decide which card to opt for is to compare credit cards and identify which one suits the applicant. After that, the applicant can apply for a credit card in UAE through the preferred mode.

Note- Not only online credit card applications are quick and convenient, but most banks also offer incredible incentives for online applications.

Documents Required for Applying a credit card in UAE

The applicant will require the following documents to apply for a credit card in UAE:

• A duly filled and signed application form. Most online applications accept a digital signature
• ID Proof - For residents, this would be the Emirates ID. Expats will need to present their original passport.
• Address Proof
• Proof of Income - As mentioned earlier, the eligibility for credit cards in UAE depends on a minimum monthly income. The bank statement or salary slip can be used as a proof of income. Certain banks may also ask for an entire year’s statement to determine whether the applicant has a stable source of income or not. The applicant applying for the best credit cards will also be required to maintain a minimum balance in their account.

Why you should Opt for Policybazaar.ae for your Credit Card?

 Applying for a credit card in UAE can be a time-consuming process. The choices are endless and a long search to find the best credit card in UAE is just further complicated by surprisingly similar rewards and rates of interest.

Policybazaar.ae helps you to save time and zero down on the credit card of your choice. Here is why you should opt for Policybazaar.ae for your credit card:

• Compare Credit Cards - As an aggregator of various credit card providers; we offer customers a platform to compare credit cards in UAE. There is no better place to compare credit cards than Policybazaar.ae because it helps save time and select the best credit card in a hassle-free
• Unbiased Approach - PolicyBazaar.ae doesn’t favour any specific brand. The credit card comparison results are strictly statistic based. Policybazaar.ae follows an unbiased approach by aiming for accurate representation of all credit card offer in UAE, to help make the decision easier for the applicant.
• Accuracy - In order to provide accurate results, the comparison results are updated on a regular basis. By sharing accurate and up to date figures on annual membership fees, interest rates and more, Policybazaar.ae helps the individuals to come across the best credit card in UAE.
• Customer-First - PolicyBazaar.ae’s customer-first approach has earned the reputation of a friendly and approachable organization, dedicated to the welfare of the customers. Whether a user is unsure about how to apply for a credit card or just wants to learn about the best credit card offers in UAE, Policybazaar.ae’s executives are always willing to answer their queries related to credit card related queries.