Applying For Credit Card In UAE-Things To Consider
There are approximately 45-50 banks operating in Dubai and most of these banks issue credit cards. These banks create Credit card deals with perks and privileges to
suit different categories of customers; individuals and corporate, elite and salaried alike.
So, when it comes to applying for a credit card in Dubai, Sharjah or any other Emirate , making a choice can be a daunting task and also confusing.
To help you out with this dilemma, I am going to lay down few important things that you need to consider before applying for plastic money in UAE:
#1. Salary/Monthly Income/Minimum Spending
In UAE, banks usually stipulate a minimum salary or monthly income or a minimum annual spending for you to qualify for a particular category of credit cards. As I see it, the minimum salary required for a basic credit card is approximately AED 5,000 from any bank in Emirates
For example, to qualify or for your application to get approved for Al-Futtaim NBAD World Elite Credit Card you need to meet one of the following below:
” . Salary in excess of AED 40,000 per month or more
. A deposit or investment assets under management with NBAD in excess of AED 500,000 or
. Portfolio of Mortgage Loans of AED 5 Million and above”
At the same time, you need to have a monthly salary of AED 5,000 to qualify for HSBC Platinum Select Credit Card.
So, pay attention to the eligibility criteria before you apply for a credit card or atleast talk to the customer service representative of the concerned bank.
#2. Credit Report – Al Ethihad Credit Bureau
A credit report is a track record or historical credit record and this will be provided by Ethihad credit Bureau, headquartered in Abu Dhabi. This report will include the credit facilities extended to you by financial institutions, utility companies, government etc. You will also get a report on history of you payments for last 24 months, payments due if
any and also past records of bounced checks and defaults. You can either opt for a detailed report or a short one.
This credit report will give you a gist of your current credit standing. Having an understanding of your credit obligations and past financial track record will give an idea whether your credit card application will be approved or rejected.
#3. Type of Credit Card
Generally there are 3 kinds of credit cards
. Unsecured credit card– This is a normal credit card and you can go for this if you are good with handling your finances or if you a kind of person who believes in paying off your credit card bill at the end of month in full.
. Secured credit card– Here you need to deposit an amount on the credit card account as a ‘collateral’. Of course you will get your deposit back. But the credit limits will be lower. That way your credit won’t go out of control.
. Prepaid credit card– Here you need not have a bank account. You just load funds on the card and you are good to go. Rest assured, you will never have a credit card debt with a prepaid credit card. You can only spend to the extent of loaded or re-loaded amount.
Give a little thought to the above. Choose the best based on your credit standing and also your affordability to repay your credit card bills.
Above are the basic things you need to consider before you can apply for a credit card in UAE. There are other factors which come into play too while choosing a credit card in UAE/Dubai like interest rates, fees and others. Those will be dealt with in another article.