In the United Arab Emirates, credit cards are widely accepted. The most up-to-date figures show that credit cards are more used for daily purchases, used by about 70% of the population. While credit cards may carry some risk, the enticing benefits given by financial institutions have won over consumers. Currently, financial institutions are engaged in a fierce card war in an effort to gain control of the largest possible share of the credit card user market. In the United Arab Emirates, where competition for customers is fierce, credit cards have become a crucial financial weapon.
Among the many main free products, users may find cash-back incentives, perks in the areas of leisure and entertainment, and free air miles. It’s important to take your time choosing a card that will meet all of your requirements. And this is especially true when there is such a wide variety of cards to choose from. Visa and MasterCard are accepted at a number of local establishments, including the National Bank of Abu Dhabi (NBAD), Abu Dhabi Commercial Bank (ADCB), First Gulf Bank (FGB), Union National Bank (UNB), and Abu Dhabi Islamic Bank (ADIB).
Compare with Debit vs Credit Card
To put it simply, when you use a debit card, you are paying with money that you already have in the bank, whereas when you use a credit card, you are essentially paying with money that you owe. Banks and paper bills are used to illustrate the key distinction between debit and credit cards. When it comes to monthly expenses, “bill money” refers to the bills that arrive and must be paid, while “bank money” refers to funds withdrawn directly from a bank account.
Credit cards are convenient because they allow you to make purchases now using money you expect to earn later. If you have a credit card, you may use it to make payments on your previous income by, for instance, paying off the whole balance the moment the statement is posted.
Dubai First Royale Card
One of the world’s most distinguished credit cards is the Dubai First Royale Card. It’s a black card with gold on the left and a diamond in the center, and it’s also 0.23 carats in weight. Select members of the royal family and other very wealthy people are the only ones who can get their hands on this card. While Dubai is home to many wealthy individuals, only a select few are granted access to the emirate’s exclusive private club. The yearly charge for the Royale Card, which is a Mastercard, is available upon request. Some reports estimate that the one-time cost to join is about $2,000.
Best Credit Card Cash Back in UAE
Before applying for a credit card, it’s important to weigh the card’s interest rate, annual fee, cash-back benefits, and other features. If you’re thinking about applying for a credit card, you should evaluate each one against these criteria. Most cash-back credit cards provide a fixed rate of return on all transactions or on a subset of those purchases. As a result, credit card users who put the bulk of their expenditures on their cards should expect to reap the rewards. The Standard Chartered Platinum Card, for instance, not only gives you 2% cash back on all transactions but also doubles the duration of manufacturer’s warranties, so if you buy an item with a 1-year guarantee, you’ll really get 2-years of protection.
The majority of the banks on the aforementioned list provide 10% cashback, with the caveat that the more often a credit card is used, the greater the benefits it offers. Due to the fact that the details of the Dubai First Royal Card are confidential to anybody who is not a registered member, the interest rate offered by most banks is 3.25 percent. Each of the above financial institutions has very low or no yearly fees. All of these premium credit cards have microchips, the wave of the future, and come with price protection guarantees and identity theft resolution services in the event that you become the victim of fraudulent charges on your card.
Paying your credit card payments on time, keeping your balances below 30% of your available credit, and paying more than the minimum amount due each month will help you qualify for lower interest rates on larger loans like mortgages and vehicle financing in the future. Most of these credit cards have additional benefits, such as 0% interest on purchases for a certain period of time, provided that the amount is paid in full at the end of each billing cycle. If you currently have a credit card, some banks may even give you cash back every month.