5 reasons to get a credit card in UAE

reasons to get a credit card in UAE

Over the last few years, there has been a huge increase in the acceptance of credit cards in UAE. Except for fuel stations (which will also start accepting credit cards soon), there is a very high level of acceptance of credit cards. In fact, credit card transactions have been growing at over 30% p.a. for the last few years.
Here is our list of the top 5 reasons why you should have a credit card in UAE.

Credit cards can be very useful in the case of an emergency. In case of a medical emergency, immediate unplanned expenses or unplanned unavoidable travel, you would need a credit card to pay your bills or air tickets. Often, there are limits on how much you can withdraw on your UAE debit card in a single day and you can use credit cards to bridge the gap. Also, you don’t need to keep a lot of idle cash in your bank account if you are have a credit card in UAE.  

Credit cards help you easily track and manage your expenses. Simply use one credit card to pay your recurring monthly expenses (etisalat / du, TV cable connection, utilities, etc.) and to buy your groceries and gas, and a separate credit card for all other expenses (entertainment, eating out, holidays, etc.). At the end of each month, you will get an itemized bill where you can check the amount that you are spending on your basic living expenses versus other expenses and can plan for the next month, This will help you stick to a budget.

Using a credit card is much safer than using cash or any other means of exchange. If you're carrying cash and your wallet or purse is stolen, you'll never see your money again. But in the case of a credit card, there are a several safeguards in place to save you from loosing all you money. If your credit card is stolen, you will not be liable for the loss until you report the loss of your card. Some banks also offer much higher protection levels that apply to you purchases on that credit card.

Foreign Travel

Credit cards are ideal for you foreign travel because they automatically convert all your expenses in that country to the local currency. This means you don’t have to waste time with a moneychanger and of course, not carrying cash makes you much less susceptible to pickpockets. Moneychangers in several countries charge very high commission rates and take margins of up to 10% while giving you the local currency. Most UAE credit cards, on the other hand, charge a fixed rate of 2.0 – 2.5% for the all you expenses in currencies other than the UAE dirham. Explore some Travel Rewards Credit Cards right here.

Last, but not the least, credit cards offer rewards for all expenses. These rewards may be in the form of cash back, airline miles, etisalat “more” points, lifestyle benefits or shopping / dining rewards. This is essentially the icing on the cake above all the reasons mentioned earlier. These rewards can be in the range of 1.5 – 5% on the expenses on the card. While this should not be the reason to spend but they make the experience even more rewarding.

So, go on and get yourself a credit card that best suits your needs (and offers an attractive rewards program) and enjoy the various benefits, safety features and convenience that come with these cards.