If you are planning to apply for a credit card then you must be thinking, “What is the best credit card in UAE for me?” The answer to this question depends upon the purpose for which you need the card. The purpose can vary from building your credit to paying a lower rate on purchases and balance transfers to getting cashback bonuses, rewards on travel or other perks. Selecting the best credit card is not very difficult if you know your preferences and the kind of card you need according to them.
Following are the steps to be followed in order to check your priorities and be aware of the factors to be considered while finding the best credit cards in UAE.
Evaluate your Credit
While assessing whether to offer you a card or not, the credit card companies take into consideration your credit scores. Being aware of your credit scores helps you to apply for the credit cards that compliment your credit profile.
If you know your credit scores, you can shortlist and apply for those credit cards which you have chances to get approved for and hence you might have a chance of preventing unnecessary hard credit inquiry that you might receive when applying for a credit card and then being rejected. These hard inquiries can have a negative impact on your scores.
In case you are trying to build your credit or are not thorough with the credit, you can consider applying for a secured card because as long as you responsibly use it, these cards can assist you in building your credits.
Deciding whether to Pay off the Credit Card Balance Monthly or Carry the Balance
If you prefer carrying a balance or are planning to carry it on a new credit card, you should look for a card with low APR (Annual Percentage Rate). Check which APR applies when and how long is the duration. Some credit cards may provide an introductory APR offer which expires after a few months which are predetermined, separate APRs for balance transfer and purchases, or higher APR that is caused due to late payments.
Decide if you Wish to Transfer a Balance or Not
If you are planning to transfer the balance from the credit card you have already, you must check balance transfer offers on different cards to look for the one that matches yours. A few factors to keep in mind when looking for a balance transfer card are the following:
- Check whether the credit card has an introductory offer on APR.
- The rate you will have to pay after the expiry of the introductory offer on the credit card.
- Fees (if any) you will have to pay on total or partial balance transfer to the new credit card. This is called the balance transfer fee.
- The rate you are paying on your current credit card (if you already own a card).
Selecting the Kind of Rewards you Need
In case you are planning to transfer or carry a balance and do not need a secured card to build your credit, you can shift your focus to reward programs, and other perks. Usually, reward cards need you to have considerably good credit.
If you Prefer Cashback
The cashback specific cards offer you value back on your regular purchases. Different cards provide different cashback offers, you can select the one that suits you the most and can either buy the credit cards online or can apply at the nearest branch.
If you Prefer Travel Rewards
If you prefer to earn travel reward points, then you should select the credit cards which have the maximum travel benefits. The credit cards in UAE offer various travel benefits like unlimited access to the airport lounge, meet and greet services, pick-up and drop on the airport and many more.
While applying for a rewards card, check the amount of value you will earn on every AED spent and go through the sign-up bonus rewards that might interest you.
Apply for that Card which offers the Highest Overall Value
After you have shortlisted the credit cards that suit your needs and preferences, you should apply for that card which offers you a higher overall value as compared to others. When you have finally selected that credit card then you can apply for the same keeping in mind that during the application process you will have to include all the sources of income you have access to along with your personal income.
In a Nutshell
Selecting the best credit card in UAE involves finding out about your financial needs and the card that is suitable for them. Once you have made your mind on this, you can look for the specific kind of credit cards, compare various benefits and privileges offered by them and apply for the card that suits your requirement. The credit card you have chosen should be able to assist you in achieving your financial goals in the most economical and effective way possible, whether you want to borrow money, build credit or earn rewards. You should try to use your credit card the right way in order to get the maximum for your money. In order to establish credit, do not use too much out of the available credit and make a monthly payment of your bills in full.