A credit card is a payment card issued to the users which enables them to purchase goods or services on credit, in which users agree to pay the card provider, on a regular basis. The right usage of a credit card in UAE provides several benefits to the cardholder. This includes the benefits added to the credit report as well. If the credit history is excellent then the person can get any financial assistance from banks or financial institutions at ease.
Benefits on a credit card in UAE :
Credit cards give numerous benefits to a user. It offers several benefits like cashback, travel rewards, and much more on the usage and helps in maintaing a good credit score an.
- The usage of the credit card will have an impact on the credit report. If the cardholder uses the credit card wisely, it will have a positive impact on the credit score. A good credit score can help while getting financial assiatnce from banks.
- Most of the banks in the UAE provide lifetime free credit cards. Along with the primary card, there are supplementary cards offered as well.
- The credit cardholder can convert his expensive payments to an Easy Payment Plan(EPP). The EPP can be availed for a 0% interest rate and this depends on the merchant and the credit card provider.
- A credit card gives financial safety to a person. It can improve the standard of living of the people.
- Credit Card offers are the important feature of a credit card. Most of the credit cards come with a wide range of offers like discounts at dining places, shopping, movies, golf clubs, etc.
- Credit card providers offer an interest free period.
- Credit cards offer cash withdrawal facility. Cardholders can withdraw upto 100% of the card limit.(Maximum withdrawal limit depends upon the provider)
Check: Top 10 Credit Cards in UAE
Requirements to get a credit card in UAE :
The person who wants to get a credit card in UAE should have a minimum salary of 5000 AED per month.
Documents required for getting a credit card:
The person who wants to get a credit card has to submit the following documents in the respective bank,
- Credit Card Application form
- For the expatriate, they have to submit the passport and residence Visa.
- Working individuals have to submit a labor card with attestation.
- For the government employees, they have to submit a government-issued photo ID card with attestation.
- Emirates ID card or the EIDA application form.
- Salary certificate and payslips.
- Minimum of 3 months of bank account statements.
Things to keep in mind :
- Though credit cards come with an interest-free period, post the grace period there is an interest rate charged on the credit card bill. And the interest rate charged on a credit card is quite high.
- Delayed credit card payments can have a negative impact on the credit card report.
- Apart from the monthly payment, there might be other charges added to the credit card bill. The cardholder needs to review the credit card bill thoroughly and make the payments accordingly. The cardholder can make the minimum payment on the card which is 5% at most of the banks in the UAE.
Other than the listed, there are numerous benefits like free insurance, getting free traveling allowances, and many other things. Credit cards help to improve the lifestyle and save money on regular payments. But the cardholders need to ensure they understand the charges levied on the card.