Importance of Credit Cards in this Modern Age
If you need to buy something and you don’t have the cash for it, credit…
Credit Cards have become a necessity of modern life. It allows you to make payments without having actual cash in pocket. Not only offline but also majority of websites accepts payments via Credit Cards, which makes them an inevitable payment method these days. The bank that issues you the credit card, keeps a record of all your transactions made with the card. This is done for various reasons, with the most major one being to ensure that your online purchase does not cross the credit limit that you are approved for. All these payments are done on credit and at the end of each month; you receive a bill that you have to pay.
Even if you have the best credit card in UAE, it is always recommended to pay your credit card bill on time; otherwise, the interest rate might keep on increasing. Most banks, like Barclays credit card UAE, or Dubai Islamic bank credit card offers various deals and discounts to their customers to attract them. Cash Back Offers, EMI and Loyalty Points are some of the many popular ways to reward the customers that pay their credit card bills on time and in full.
There are various types of Credit Cards available in Dubai, Abu Dhabi, Sharjah and other parts of the UAE. Some of them are:
Furthermore, all banks offer different terms and conditions depending on various factors, your salary being the most important factor. Hence, if you feel that you are not getting a good deal with your current credit card, you can try some other bank in UAE for Credit Card.
Today Credit Cards are considered as the hottest product in the banking world, because customers get immense benefits with these credit cards. E.g. Dubai first credit card is undoubtedly the most famous and used product in whole UAE.
For sure carrying the cash in your pocket can be seriously risky at times, hence getting a credit card UAE is always a good option that everyone should consider.
Some consider Dubai credit card to be some sort of a financial trap, but actually, it is not. It all depends on how to use the card, if you are wise enough in using the credit card it can provide immense convenience to you. The ideal way to go about credit cards is to pay your bill in full every month.
According to a recently published circular by the UAE Central bank, now banks can only provide Credit Cards in UAE for those with a salary of 60,000 AED per annum or higher. This is the most important requirement to obtain a credit card in UAE, but there are some more conditions as well.
Following documents are required with a Credit Card Application
The bank may require additional documents as well based on your specific case. Mostly the credit card procedure varies with different banks. However, in most cases, obtaining a credit card is not a tough task as long as you have a stable income and a proof of that.
Interest rates on Credit Cards in UAE vary largely from one bank to another. It also depends on your salary, credit history and financial stability. Most of the banks offer credit cards to their Dubai and Abu Dhabi clients on 2.75-2.99% interest rate. Some banks also have a flat rate of interest per month on a UAE credit card, e.g. 295-750 AED/. Hence, it is vital to understand the interest rate properly of the card you are getting, so you are able to pay off the credit card bill easily.
In addition to interest rate per month, you will also be paying annual Fees on your credit card. This fee also depends on a variety of factors. Some other types of Fees that you can expect are Late Payment Fees, Joining Fees, Over Limit Fees and Cash Withdrawal Fees.