Tips To Choose the Best Balance Transfer Credit Card in the UAE
Credit card is a very helpful financial tool as it may help you to pay off your debt with the utmost ease. However, it could also lead you into a debt trap, depending on how you use it. Sometimes, it could be a very tough task to pay off the debt on your plastic card, especially if you’re only making the minimum payments each month.
In such a situation, opting for a balance transfer credit card can be a viable option for you. There is a wide range of banks and financial institutions in the UAE that provides ‘balance transfer credit cards’ which enable you to transfer the outstanding balance on one credit card account another at favorable rates.
So, before discussing balance transfer credit cards in the emirates, let us talk about some useful tips about balance transfer.
Important Tips on Balance Transfers
Explore the Options
As said earlier, there are the host of banks and financial institutions that offer balance transfer credit cards in the UAE. So, are you wondering how to choose the best one? Well, it is always advised that you should always start with good research. And then, compare the different cards on the basis of their features & benefits to zero down the best one.
Rate of Interest
Some of the banks offer zero percent interest rate on balance transfer but this offer would be valid only for some specific period of time only which typically lies between six months to one year. After that promotion tenor ends, there would be some interest payable which varies from one card to another.
Well, it is true that at least for quite some period of time, you would not have to pay any interest on balance transfer. But it is very imperative to check the interest rate that will be charged on transferring the balance from one card to another card after the end of the offer time. Reason being, some of the banks and financial institutions levy a very high interest rate when compared to your old plastic card which would be a huge burden for you. In addition to this, few banks do not accept balance transfer if you have skipped or delayed monthly payments on your old credit card.
As complimentary benefits, many credit cards offer additional benefits such as air miles, airport lounge access, golf rounds, etc. Do not simply carry away by them. Make sure, you go through the fine print carefully to know about the terms & conditions of a credit card so that you can make the well-informed decision.
Balance Transfer Fees & Charges
Though it is quite important to go through the fine print, it is certainly not enough. It is equally important to know about the fees & charges that are associated with balance transfer credit cards. Most of the credit cards, but not all charge you a fee for transferring a balance from one card to another card which is generally 3 to 5 percent of the transfer amount. Make sure, you pay attention to all the charges before choosing the balance transfer plastic card.
3 Top ‘Balance Transfer Credit Cards’ in the Emirates
Given below are some of the best credit cards that provide the facility of balance transfer:
ADCB TouchPoints Infinite Credit Card
Annual Membership Fee: AED 1050
Finance Charges (Balance Transfer): Up to 1.50 percent per month.
With a wide variety of privileges and offers from entertainment deals, free stay, discounts on online food delivery, this credit card is designed to complement your lifestyle. In addition to this, this card can be considered as one of the top ‘balance transfer credit cards’ in the UAE. It helps you to save on the interest expense when you transfer the outstanding amount from other bank cards to this card. Plus, you can also enjoy the privilege of a 0% rate of interest & repay in easy to pay installments for a maximum of 12 months.
HSBC Advance Credit Card
Annual Membership Fee: Free
This HSBC Advance credit card offers numerous exciting benefits and offers including complimentary HSBC entertainer app, airmiles rewards, an array of travel & lifestyle benefits including complimentary airport lounge access and discount on hotel bookings, and a lot more.
Apart from these privileges, you can also avail the facility of transferring the balance at a rate of interest (at reducing balance) as low as zero percent for the first one year i.e. 12 months. Following is the balance transfer charges levied on this card:
- Six Months Plan: 1.50 percent of the balance transfer amount or 100 AED, whichever is greater.
- Twelve Months Plan: 3 percent of the balance transfer amount or 100 AED, whichever is greater.
- Twenty Four Months Plan: 6 percent of the balance transfer amount or 100 AED, whichever is greater.
Mashreq Platinum Elite Credit Card
Annual Membership Fee: AED 650
With the Mashreq Platinum Elite Credit card, you can enjoy an array of privileges that are designed to complement your travel and lifestyle be it shopping, travel, sports, dining, entertainment, and much more.
In addition to this, it comes with super awesome features that are unmatched by any other credit card. And they are extended warranty, purchase protection, etc. In short, this is the card that can meet your various needs.
Another best thing about this card is that it provides you the facility of balance transfer without the requirement of an income document and at zero percent interest rate. Moreover, there are fixed installments with a maximum tenor of 36 months and the bank allows you to transfer a maximum of 75 percent of the available credit limit.
In A Nutshell
Do you have to pay off your debts on your credit card but you are unable to keep up with a high rate of interest payments? If yes, then a balance transfer at a zero percent rate of interest can definitely help you in reducing your financial burden.
Well, there is a wide range of balance transfer credit cards are available in the emirates. Aforementioned are few of such cards. However, please keep in mind that this list is not ranked in any particular order. So, you can opt any of the balance transfer cards that suits your requirements the most.