Credit cards have become a necessity for most Dubai residents. Not only do credit cards make shopping and online transactions convenient, but they can also save you a considerable amount of money through Cashback, Dining Discounts, Shopping discounts, etc.
How Do I Get a Credit Card in Dubai?
A credit card has now become an essential need-based product for most people and one that can not only help fulfill daily transaction needs but also that can enhance your lifestyle, especially in the shopping capital of the Middle East. Many credit cards offer additional benefits like air miles, two-for-one cinema tickets, free valet parking, and discounts in restaurants and SPAs. Your big move to Dubai probably means you’re potentially going to buy many new things for your home and family at once, so a credit card might come in handy.
What documents will you need to apply for a credit card?
You will need at least the following documents when you go to the bank to apply for a credit card:
- Filled in and signed credit card application
- Emirates ID & original passport
- Residence visa
- Expats need to produce proof of UAE residence. You can bring along a rental agreement, utility bill, or title deed
- Salary slips, certificates, or bank statements from the bank where your income is transferred
Wondering which credit card you should get?
Here are some of the factors you should keep in mind while picking a credit card:
- Income: Most credit cards have a minimum salary requirement. Also, banks will offer you different credit cards depending on your salary so do your research and find out what credit cards you are entitled to apply for. If you are self-employed or do not have a regular income, there are banks that will still offer you a credit card, provided that you keep a certain amount of money in an account with them.
- Annual fee: Depending on the card you choose you may have to pay an annual fee. High-end cards with additional benefits often have higher annual fees, so you need to ask yourself whether the benefits they offer are worth the extra cost. However, there are some credit cards that don’t have an annual fee. Also, the bank will sometimes agree to remove the annual fee on the condition that you use the card to spend over a minimum amount set by the bank. Make sure to understand the fee structure and terms before applying for the card.
- Interest rate: You should check the interest rates on all credit cards you have shortlisted. If there is a chance that you won’t be able to pay back the entire amount in a month, select the credit card with the lowest interest rate.
- Cashback versus reward-based cards: Some credit cards offer a variety of discounts or travel-related benefits, while others give you cashback based on the total amount you spend in a month. Think about how you expect to use your card and choose accordingly. If you plan to use your credit card mainly for dining, golfing, and entertainment purposes, it might make more sense to get a reward-based card. On the other hand, some customers prefer cashback credit cards as they use them to get higher rewards on certain categories of spend.
- Are you a regular traveler? Some credit cards give you air miles based on how much you spend every month. The air miles can be direct airline reward points or can be the bank’s proprietary miles that can be converted to airline miles programs. Depending on the program, you could use the air miles to get discounted or free flights as well as upgrades. In addition, you can get access to airport lounges and free airport valet parking or airport pick-ups with some credit cards. You should also see how much you will be charged by your bank for using the credit card in another country and for potential FX conversions.
Benefits of a Credit Card in Dubai
Each credit card comes with certain perks and rewards so you should choose your credit card depending on your lifestyle and how you plan to use the credit card. For example, some credit cards help travelers accumulate miles, while others offer cashback rewards to shoppers. Check out the following benefits of having a credit card.
Cashback benefits: Having a credit card with cashback benefits is ideal for people who want to use their credit card to get rewarded in everyday spending, be it groceries, fuel, or online transactions. Basically, you will get an amount of cashback dependent on your total monthly expenses. This will be credited to your next credit card statement. For example, if your credit card offers you a cashback of 10% on fuel, then for every AED 100 spent on fuel you’d get AED 10 credited in your card’s next statement. You can also often avail discounts at select retail shops, restaurants, spas, and many other places by using your credit card.
Pay in easy installments: Can’t afford to buy your dream living room furniture with an upfront payment? Some banks offer zero percent interest rate options on certain merchants to pay in installments over a given period of time. Many customers consider this option to manage their cash flow better and stick to their monthly budget.
Travel with air miles and avail travel discounts: A credit card can help you in several ways if you travel frequently. One of the biggest benefits is the accumulation of air miles with every dirham you spend using your credit card. By accumulating miles, you could redeem them against air tickets and travel to your dream destination for free or even redeem them for retail vouchers and other experiences. Other perks for travelers include discounts on air tickets, accommodation, complimentary airport lounges access, rent a car services, and chauffeured rides.
Free deals: With the right credit card, you can also avail of exclusive offers where you can get products and services for free in Dubai. HSBC offers its credit card customers numerous buy-one-get-one-free deals through its HSBC Entertainer App. The app allows users to locate venues around them and tracks savings. So the next time you want to treat yourself to an offer across dining, leisure, retail, and wellness, look up the deals available on the app and take your best friend with you.
Get free insurance: Another great benefit that comes with some credit cards is that you can enjoy peace of mind when traveling or shopping with your credit card. Travelers can avail of complimentary travel insurance with HSBC’s Black and Premier credit cards. With other credit cards such as HSBC Cashback and HSBC Platinum Select, you can get purchase protection and an extended warranty.
Savings on entertainment: People who are looking for ways to save money are often advised to avoid spending too much on entertainment and leisurely activities. With credit card benefits you can keep yourself entertained in Dubai without exceeding your budget. From travel privileges to lifestyle offers, credit cards can make a lot of leisurely activities more affordable for you. You can even avail discounts at restaurants and cinemas as well as get free valet parking with some credit cards.
Depending on your income, you can shortlist credit cards that are available to you. Compare credit cards on (https://www.hsbc.ae/) to find out which one suits your needs and be sure that you’re using credit wisely and you’re spending within your means.
