Credit Card Dubai: How to Choose the Top Cards for Expats and Locals Alike

Dubai is known for its lavish lifestyle, and credit cards in UAE are an essential part of that lifestyle. However, choosing the right one can be challenging with numerous credit card options. Expats and locals must find a credit card that suits their needs and offers the best possible benefits. In this article, we'll discuss some of the factors to consider when choosing a credit card in Dubai and provide some tips for selecting the best credit card for your needs.

Factors Worth Considering When Choosing a Credit Card in Dubai

Credit Score Requirements and Eligibility Criteria

Before applying for a credit card in Dubai, you must check your credit score. A good credit score is essential to qualify for a credit card with attractive features and benefits. Most banks in Dubai require a minimum credit score of 700 to 750 to qualify for their premium credit cards. If your credit score is below the minimum requirement, you may want to consider improving your score before applying for a credit card.

Apart from the credit score, banks in Dubai have specific eligibility criteria for credit card applications. The eligibility criteria include minimum age, income, employment status, and residency status. Before applying for a credit card, ensure that you meet the eligibility criteria.

Interest Rates and Fees

Credit cards in Dubai come with different interest rates and fees. The interest rate is the amount charged to your outstanding balance if you do not pay the full amount on time. Interest rates in Dubai can range from 3% to 4% per month. If you plan to carry a balance on your credit card, you must choose a card with a lower interest rate.

Credit cards also come with various fees, such as annual fees, late payment fees, and foreign transaction fees. Some cards may waive the annual fee for the first year, while others may waive the fee if you spend a minimum amount on the card. It's essential to understand the fees associated with a credit card before applying.

Rewards Programs and Benefits

Most credit cards in Dubai offer rewards programs and benefits to attract customers. Rewards programs can include cashback, reward points, air miles, and discounts on shopping, dining, and entertainment. Benefits can include travel insurance, airport lounge access, concierge services, and discounts on hotel bookings.

When choosing a credit card, consider the rewards program and benefits that align with your lifestyle and spending habits. For example, if you travel frequently, a credit card with air miles rewards, like a platinum credit card, may be a better choice. If you spend more on dining and entertainment, a card with cashback rewards on these categories may be more beneficial.

Foreign Transaction Fees and Currency Exchange Rates

Dubai is a hub for international travel, and many credit card users may use their cards abroad. Some credit cards charge foreign transaction fees for purchases made outside the UAE. Foreign transaction fees can range from 2% to 3% of the transaction amount. It's essential to choose a credit card that offers low or no foreign transaction fees if you plan to use your card abroad.

Credit cards also offer different currency exchange rates for foreign transactions. The exchange rate can significantly affect your purchase amount, and it's essential to choose a card with favourable exchange rates.

Credit Limit and Payment Terms

The credit limit is the maximum amount you can spend on your credit card. The credit limit depends on your credit score, income, and other factors. It's essential to choose a credit card with a credit limit that suits your spending needs. However, it's crucial not to overspend on your credit card and end up with a high outstanding balance.

Payment terms are also essential when choosing a credit card. Payment terms include the grace period and the minimum payment amount. The grace period is the time given to pay off the outstanding balance without incurring interest charges. Most credit cards in Dubai offer a grace period of 20 to 25 days from the statement date. The minimum payment amount is the minimum amount you must pay to avoid late payment fees. It's essential to understand the payment terms and ensure that you make timely payments to avoid additional charges.

Top Credit Cards for Expats in Dubai

Expats in Dubai have unique needs and spending habits, and credit cards that cater to these needs can be more beneficial. Some of the top credit cards for expats in Dubai include:

Credit cards with air miles reward: Expats in Dubai often travel frequently, and credit cards that offer air miles, like the platinum credit cards, can be beneficial. These cards offer air miles for every purchase made on the card, which can be redeemed for free flights or upgrades.

Credit cards with cashback rewards on dining and entertainment: Expats in Dubai often enjoy dining out and attending entertainment events. Credit cards that offer cashback rewards on these categories can help save money.

Credit cards with no foreign transaction fees: Expats in Dubai may use their credit cards while travelling abroad. Credit cards with no foreign transaction fees can save money on foreign transactions.

Top Credit Cards for Locals in Dubai

Locals in Dubai have different spending habits and needs, and credit cards that cater to these needs can be more beneficial. Some of the top credit cards for locals in Dubai include:

Credit cards with cashback rewards on groceries and fuel: Locals in Dubai often spend more on groceries and fuel, and credit cards that offer cashback rewards on these categories can help save money.

Credit cards with discounts on shopping and dining: Locals in Dubai often enjoy shopping and dining out, and credit cards that offer discounts on these categories can help save money.

Credit cards with no annual fees: Locals in Dubai may prefer credit cards with no annual fees to avoid additional charges.

Conclusion

Choosing the right credit card in Dubai is essential to maximize the benefits and save money. When choosing a credit card, consider the factors discussed in this article, such as credit score requirements, interest rates and fees, rewards programs and benefits, foreign transaction fees and currency exchange rates, credit limits, and payment terms. Expats and locals in Dubai have different needs and spending habits, and choosing a credit card that caters to these needs can be more beneficial. It's essential to do your research and compare different credit cards before making a decision.