Credit card eligibility depends on these factors —
- Basic salary.
2. Currently employed as salaried.
3. Self-employed professional or self employed business
4. Length of service
Some countries have eased the process, and Credit card eligibility in UAE is a relatively easy task.
Even though their purposes may stay the same, each card differs based on the amount of credit that is available and the number of benefits that is available on the card.
Major criteria to obtain a credit card:
- Age of the applicant
The age of the applicant is also a big criterion; most of the Middle East allows applicants to get credit cards if they are over the age of 21. If one can provide an independent source of income, they are permissible to apply for cards at age 18.
If a younger entrepreneur wants to open an account, he can do so with a co-signer, who has to be a legal guardian. The benefit of getting a credit card at such a young age is the ability to build great credit and be eligible for bigger loans and mortgages.
- Having a verifiable income source
The most important requirement to issue a credit card is to have a verifiable income source. This can even help with self-employed persons if they are a national of the state. The best case scenario for a credit card application is to have a steady influx of salary.
This can be on a monthly or a weekly basis. It is of utmost importance as, without the income, one may not be able to pay off the debts and end up in a debt trap. Even paying off the bare minimum every month can be extremely useful.
- A physical address for the cardholder
A physical home address is also a key factor, which means that PO boxes do not count, and in fact, the address has to be a place where one can receive correspondence mail. These requirements and much more will vary depending on the bank; different issuers may have different credit ratings and requirements. It verifies the occupancy of the user and that the bank is not getting fraud in an unlikely scenario.
- Emirates ID and procedure for non-residents
A proof of residence is also necessary, in the case of the United Arab Emirates, the national ID card, called the Emirates ID is the required document.
Having this ID is important; it keeps a record of the person and any dues and fines along with things such as health and life insurance details. For immigrants and other Non- Emirati residents, they need to provide other documents.
These are the passports and the residence permit of the applicant; this helps establish a valid identity and the purpose of the applicant in the UAE.
Once they fulfill these criteria, they are assured to get a credit card, and then, proceed to use the cards and make their purchases.
What should one look for in a credit card?
The purpose of buying a credit card in uae is to make payments to merchants without worrying about the balance and overdraft issues. Apart from this feature, there are other benefits which make owning a credit card, such a joy.
Among the additional features, cashback is the most widely searched ones. As one makes a purchase, a certain amount is deducted each time; for each deduction, if one could get a return of sorts, then the benefits for the card user is multiplied. Each bank has a tie-up with a number of stores and these “partner” stores offer cashback and other offers when the card is used at their merchant stores.
The cashback is usually a small percentage of the purchase and can usually range from somewhere between 1-3% of purchase value. The cashback can also differ on the type of expenditure one makes. For smaller transactions, their values may be very low, and for transactions abroad, they can be double that of domestic purchases. This encourages users to travel and utilize their cards, for expenditure abroad.
Want to know more about best cash back credit cards in uae
Banks also offer life time free credit cards , which means that regardless of the usage of the card, there is no charge for operating the card.
This may change for banks as time passes, and they usually charge an annual fee, if spending stipulations are not met.
Credit cards are given when the user can make a monthly payment, which need not be the full amount. Thus, most credit accounts are revolving accounts.
The monthly payment, however, is 5% minimum of the total debt and can vary depending on the bank. The interest rate fluctuates between 3-5% monthly. You can also find low interest credit cards in UAE.