Dubai: All major credit cards are available and accepted in the UAE and the most common are Visa and MasterCard.
It is uncommon for major retail stores to offer credit cards here so most people apply for them at any of the major banks. And since a number of banks in the UAE offer various incentives, an applicant has the luxury to choose what card suits him best.
The annual fees and interest rates are similar in most banks, so an applicant often chooses the bank based on the increasingly competitive packages being offered, as well as convenience such as speed of service, ease of payments and accessibility.
Interest rates, ranging from 2 per cent to 2.25 per cent a month, depend on which company your card is from and which type of card you have.
Credit cards can also be used to withdraw cash from ATMs, the limit for which depends on the type of card one has, ranging from 50 per cent to 75 per cent of the holder's credit limit. Depending on the card type, limits are usually about two or two-and-a-half times an applicant's salary.
However, increases in limits can be applied for and are subject to management approval.
Most banks will also offer up to two supplementary cards that share the limit on the primary card, for every credit card you have.
Some might offer them for free and others might have a small, one-time charge. Banks, however, will not allow you to have more than one card per credit card company.
Increasing competition among banks has led them to offer attractive packages to choose from. Don't be surprised to find your credit card coming with plenty of exciting advantages ranging from purchase protection and life insurance to free air miles and travel insurance.
Useful information
Documents required
Applying for a credit card requires you to submit documents and meet a representative. But most banks will be happy to send a representative to your home or work place.
Some banks have more stringent requirements than others. Be prepared to provide the bank with:
- A valid original passport showing your residence visa (not a photocopy)
- A copy of your labour card
- A salary certificate
- A three-month bank statement
- Some banks will also ask you for a blank security cheque, which will be used in case of payment default.
Types of cards
The types of cards available to most people are the standard or classic cards, gold cards and platinum cards. Aside from those, some banks may offer exclusive cards, which can only be obtained upon invitation.
The type of card one can qualify for depends on income. At the lowest end comes the standard card, which can be obtained with a monthly salary of Dh2,500. A gold card requires a Dh7,000-Dh8,000 salary and the platinum is for the higher income group of salaries no less than Dh15,000 a month.
Although some banks might offer free credit cards, they are often only part of a special offer, lack a package of advantages, and only free for the first year.
Most of the popular types of credit cards and packages usually have an annual fee of about Dh150-Dh200 for the standard card, Dh400-Dh500 for a gold card and Dh600-Dh800 for a platinum card.
Internet shopping
Some banks provide an option for online shoppers. Cards made specially for online use that have limits as low as Dh2,000 and no magnetic strips or signature panels cannot be used in retail outlets or for cash advances.
These virtual cards are meant only to be used for remote purchases online or over the phone.
