Selecting the best credit cards for yourself is important so as to enjoy the benefits that are suitable for you rather than getting benefits that are of no substance for you.
Do you know you have an option of choosing a suitable credit card amongst various credit cards? You get the one that you have chosen.
The banks in the UAE offer an assortment of credit cards that are full of specialized benefits and offers that range from cashback, rewards, and shopping to fuel, miles, and entertainment.
Selecting the best credit cards for yourself is important so as to enjoy the benefits that are suitable for you rather than getting benefits that are of no substance for you.
As a matter of fact, there is no such credit card across the world that can be ranked number one. The credit card that suits your tastes and preference is the number one credit card for you.
What are the types of credit card available in the UAE?
Banks in the UAE offer various types of cards to suit the different preferences and taste of the customers. You must identify your most preferred category in order to decide the credit card which is suitable for you. Here are the main categories of credit cards available in the UAE.
1) Shopping
If you are a shopaholic, lifestyle cards can be suitable for you as they offer benefits like discounts, deals, rewards, and cashback. Usually, banks have a partnership with outlets to provide you amazing deals. You would also have access to previews, sales, and more.
Shopping credit cards are not just confined to retail shopping. They are also designed for household and groceries requirements.
2) Travel
If you are a frequent traveler, then travel cards can be the best credit cards for you. You may earn a lot of rewards by making transactions using your travel credit card. You can earn miles, which you can later redeem for booking airline tickets, hotels, and more.
It may also provide insurance cover on baggage, flight delays, etc. You can access airport lounges and concierge services such as hotel, cab, and flight bookings through these credit cards.
3) Entertainment
If you like going out to dinners, clubs, concerts, movies, and more, then these types of credit card are the best for you. You can avail complimentary drinks, discounts, exclusive invites, free tickets, & earn rewards on all your transactions.
4) Others
There are a lot of other exclusive categories of credit cards in the UAE, which are designed for meeting your specific needs. These can be cashback cards, reward cards, educational cards, golfing cards, student cards, and more.
Let us now discuss:
Which type of credit card is the most suitable for you?
The answer to this question is based on your main purpose to opt for the credit card.
Here are the steps that help you in identifying your priorities and understanding the factors that should be considered while selecting the best credit cards in the UAE.
1) Considering your Credit Score
Credit card providers usually consider your credit scores as a factor while deciding whether to approve your credit card application or not. Having a knowledge of your credit score might help you in applying for credit cards that suit your credit profile.
Once you have knowledge about your credit scores, you can then apply for those cards, which you have more chances to get approved for. This means that a detailed inquiry could be worth it.
Hence, you might have a chance to avoid the unnecessary stress you could have had on applying for a credit card and getting rejected. Hard inquiries may hurt your credit score.
If you have started to build a credit score, or are working to rebuild it, you might prefer to apply for a secured credit card. This kind of credit card may help you in building your credit only when you use it wisely.
In order to help build your credit score using a secured card, ensure that you make payments well on time. It is recommended that you use only a certain percent of the available credit.
2) Deciding If You Are Going to Pay Off the Card Monthly or Carry Balance
If you usually carry a balance or are planning to carry a balance on your new credit card, your main priority must be a low APR or Annual Percentage Rate.
Some credit cards may be offered at an introductory 0% APR. It is suggested that you must pay attention to the APR that is applicable and its duration.
The introductory APR offer may expire after a few months. There might be different APRs for balance transfer and purchases. There might also be a high penalty Annual Percentage Rate, which is generally charged due to late payments.
3) Knowing If You Want to go for Balance Transfer or Not
In case you are planning to transfer a balance from one credit card that you already own, you must compare balance transfer offers on various credit cards in order to find a suitable one.
Listed below are some factors to consider while selecting a balance transfer credit card in the UAE.
– The rate you are paying currently.
– If the new credit card comes with an introductory APR offer or not.
– The rate you will be paying after the expiry of introductory APR offer.
– Whether you will be charged a balance transfer fee or not. If yes, then the amount of fees.
4) Selecting the Types of Credit Card Rewards, You Wish for
There could be cases where don’t have to build a credit score using a secured card and do not plan on carrying or transferring a balance. In these situations, you can put rewards, cashback, and other perks on priority. Usually, the reward cards need to have a good to excellent credit score.
• If You Need Cashback
Cashback credit cards may help you in earning money back from regular purchases. If you use your cashback card for regular purchases, then it can be a suitable option for you.
• If You Need Travel Rewards
In the UAE, there are various options if your preference is earning travel points and rewards. You can redeem these rewards and utilize for your travel bookings such as hotels and airline tickets.
While applying for rewards credit cards, make sure you are aware of the rewards you will earn against every dirham you spend. Ensure that you have read the terms of the welcome bonus rewards, which might have caught your interest in the first place.
To Sum Up!
Selecting the best credit cards in the UAE is all about knowing what exactly your financial needs are and which type of card would work the best for you. After you have made that important decision successfully, you can proceed further by researching specific credit cards. Compare benefits and offers on different credit cards, and finally apply for the card you find most suitable. Refer to the above-mentioned factors while selecting the card of your choice.
