There are more takers for credit cards than ever before in the UAE, with people opting to conduct most of their transactions using credit cards.
The UAE has always had a special affinity for credit cards, but their popularity is on an upswing over the last five years. As per data released by the UAE Central Bank this year, credit card usage in the country has grown at an annual rate of 24% from the years 2010 to 2014. There are more takers for credit cards today, as people use them for both recreational and payments purposes.
It is easy to apply for a credit card in the UAE today, with banks lowering the minimum salary requirement for both conventional and Islamic credit cards. Across the board, the salary requirement to purchase a conventional credit card is in the range of Dh 6,000 to 10,000 per month, while the same parameter is set at Dh 5,000 for Islamic credit cards. This means that most earning residents of the UAE can easily purchase a credit card from the bank.
Purchasing a credit card
It is fairly simple to apply for a credit card in the UAE. Banks in the country offer easy purchase options (both online and offline) and the card is ready for delivery and use within a few days. Banks have also drastically reduced the paperwork formerly required to avail of a credit card in the country.
Banks in the UAE today do not insist on hard copies of credit card application forms to be submitted. The entire selection and purchase of credit card can be done online in a matter of minutes. The supporting documents (like salary/income certificate, bank statement, proof of age and residence) are verified by the bank and the card is then deemed purchased. It is then sent to the applicant’s home within days, with supporting documents explaining the card’s fees, usage and credit limit, among other things.
It is prudent to take a credit card in the UAE since most of them come with a range of benefits that incentivise the card’s usage. Most credit cards in the country can be used for a variety of recreational purposes such as buying film tickets or getting discounts on fine dining in select restaurants. Most credit cards also let the user accrue reward points on shopping at certain brand outlets and shopping malls.