A credit card, as we all know, is a form of plastic money that enables the cardholder to purchase goods or services on credit, which is given by the issuing bank, via the credit card. So, these funds are essentially a loan lent to the user, by the bank and this can only be done up to a certain maximum limit, called the credit limit. This form of money became first became famous in the year 1950 and it didn’t take much time for the world to catch on to this trend. However, the concept and mechanism of credit cards took a little time to gain popularity in the United Arab Emirates. Now, the situation is such that almost 63% of the population of the United Arab Emirates uses a credit card.
There are multiple kinds of credit cards available in the United Arab Emirates and yes, sometimes it can get a little confusing as to which one to choose? Certain important factors need to be considered here. For instance, the credit limit being offered by the Bank, the interest rate, other fees that would be levied, and even the rewards and benefits that come along with that card.
Now that we’ve told you this, let’s dive into the various types of credit cards offered by Banks in the United Arab Emirates. Note that each of these cards caters to a different type of user and what they want from their card.
The Air Miles Credit Cards are also known as travel points and frequent flyer miles cards and form part of the air Miles Credit Card loyalty program. In this type of card, essentially, the holder accumulates a specific amount of air miles based on how much they’ve spent from their credit card. These points can later be redeemed to purchase flight tickets. There are two different types of Air Miles Cards available in the United Arab Emirates- the Airline Miles, which are associated with certain specific airlines, and the Airline ME, which is not associated with a particular airline and can be redeemed in several ways. If you’re a frequent flyer, then you should surely opt for this card!
Several banks in the Emirates offer credit cards that have complimentary lounge access on airports, regardless of the purpose of travel, enabling their holders to relax and unwind before taking off. A few cards even offer lounge access at the airport across the world and some give supplementary access as well
A lot of people in the United Arab Emirates opt for the balance transfer credit card, which enables them to transfer the funds, i.e, a balance transfer, from a card having a high-interest debt to one with lower interest rates. This helps the holder save a lot of money that otherwise would go out in the name of ‘interest’. However, it is important to note that interest is charged on this balance transfer as well.
As the name itself suggests, a cashback credit cardholder gets a part of the amount of the transaction he made, as ‘cashback’. The amount of cashback differs from bank to bank and also depends upon the type of purchases; monthly caps and minimum spend requirements. Some banks also tend to give points that the holder can redeem on purchases, etc, instead of giving cash.
Travel expenses can be very high at times, burning a huge hole in your pockets. Who doesn’t like discounts, especially when it’s on your travel tickets! Not just this, the Travel Credit Cardholders also get free airport lounge access, discounts on hotel bookings, air miles, complimentary travel insurance, cashback, and much more. This card is a boon for avid travelers!
Want perks such as free movie tickets or discounts? To reward their customers, some banks in the United Arab Emirates have teamed up with cinemas such as the VOX Cinema, the Reel Cinema, and various others, to give their credit cardholders numerous discounts, complimentary movie tickets, and even refreshments! This card is a smart way to save money for a movie lover.
The United Arab Emirates houses some of the finest golf courses in the entire world! Consequently, it comes as no surprise that the banks in the United Arab Emirates offer credit cards that give discounts and perks to customers that are either part-time or full-time golfers. These perks and benefits could be a free round of golf at a premium golf course in the Emirates,
and sometimes, even abroad! However, the benefits vary from one card to another.
Normally, every credit card comes with an annual membership fee. However, in certain situations, these annual charges may not be worth the benefits that credit card offers and therefore, of late, banks in the United Arab Emirates offer something called a lifetime free credit card or free for life credit cards. These types of cards offer ample benefits and rewards without charging an annual membership fee for a lifetime and can prove to be value for money, indeed!
To conclude, we would like to say that every type of credit card is, at the end of the day, a credit card and resultantly, will offer all that a credit card usually offers. However, when additional benefits are available, why not opt for them? That is why these types of credit cards are so popular! They cater to the specific needs of various types of the cardholder and there is something for everybody. At this juncture, we would also like to remind you to that a credit card comparison of these different types of credit cards and opt for the one that suits your overall needs.
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