The Ultimate Guide to Comparing Credit Cards in the UAE
With the wide array of credit cards on offer from major banks in the UAE such as Emirates NBD, ADCB, HSBC and more, it’s no wonder many consumers feel overwhelmed when trying to find the right card to fit their lifestyle and spending habits.
The UAE credit card market is highly competitive with banks offering cards loaded with rewards programs, sign-up perks, cashback deals, airline miles, hotel points, insurance benefits and additional features to entice customers. However, not all cards provide equal value. Taking the time to thoroughly research and compare the fees, interest rates, rewards structures, and fine print across this crowded marketplace is an essential endeavor.
The card that appears flashy and impressive in ads may come with costly fees or restrictions. Yet there are attractive cards with competitive rates and truly valuable rewards out there.
Finding one matched to your spending patterns through diligent comparison shopping can end up saving you significant money in the long run. The effort required is well worth the payoff.
Annual Fees
When looking at annual fees, you’ll find cards ranging from no fee up to over AED 1,000 per year for ultra premium cards. Consider your average monthly spending and whether you’ll use enough of the card’s rewards and perks to offset a high annual fee. Also keep in mind that some fees are waived the first year and then applied on renewal.
Interest Rates
In terms of interest rates, you’ll find huge variation among cards from 0% introductory APR on purchases to over 3% per month (36% APR) on cash advances. Be sure to compare not only purchase rates but also balance transfer and cash advance rates. Ideal cards will have single digit interest rates, so avoid those with rates above 15%.
Reward Programs
Evaluating reward programs thoroughly means picking ones that match your spending categories such as groceries, fuel, dining out and so on. Popular rewards include air miles, hotel points, cashback, retail vouchers and more. Check if the points expire or have blackout dates for redemption. Go for flexible programs with no blackouts.
Sign-up Bonuses
Review sign-up bonus offers carefully as top bonuses can be worth over AED 2,000 but require minimum spend of AED 3,000–4,000 within three months. Make sure you can meet the minimum through your organic spending without overspending. Use bonus calculators to estimate the bonus’ value.
Foreign Transaction Fees
Since foreign transaction fees average 3% per transaction made abroad, cards that waive these fees can save you substantial amounts when traveling overseas. Avoid cards that charge both an annual fee and foreign transaction fees.
Insurance Benefits
Understand insurance benefits fully as premium cards include free rental car, trip cancellation, baggage delay and other travel coverage. Also look for extended warranty and purchase protection. Review policy terms to grasp coverage limits and exclusions.
Do the Math
Finally, do the math thoroughly. Tally up all costs like annual fees, potential interest charges, foreign transaction fees and compare that to your expected rewards earnings. Make certain a card will save you money instead of costing you more than it’s worth. Use a spreadsheet to calculate your net gain or loss with each card.
United Arab Bank is one of the leading banks in the UAE, renowned for its innovative financial solutions and customer-centric approach. With a strong commitment to excellence, the bank offers a diverse range of services tailored to meet the evolving needs of individuals and businesses. Its portfolio includes a variety of credit cards, including the prestigious Mastercard World, Mastercard Platinum, and Mastercard Titanium options. These credit cards not only provide cashback rewards on purchases but also come with the advantage of a first-year fee waiver. Complemented by exclusive dining discounts, airport lounge access, and comprehensive travel insurance coverage, United Arab Bank’s credit cards enhance the overall banking experience for customers. Whether for online shopping, dining, or travel, these cards exemplify convenience, security, and unparalleled privileges in every transaction.
By thoroughly comparing cards using these tips, you can identify the best credit card in the UAE to match your spending habits and savings goals. The effort pays major dividends.
