Credit cards have turned out to be a vital payment instrument for everyone which helps in going cashless and need not worry about balance in the bank accounts. There are many benefits of having a credit card and only perfect users are aware of it. Most of them who don’t own a credit card are scared of the fees associated and that is the main reason for people not using credit cards for their transactions.
There are a few things like interest rates, annual fees, credit limit and much more related to a credit card. Interest rates and other charges are mandatory payments, be it low or high depends on the bank you get your credit card from.
Related: Know what are the charges associated with a credit card
Annual fees:
Coming to the annual fees, maximum fee banks charge is 3000 AED annually and the minimum being 0 AED. This annual fee banks charge is for maintenance, service and 24 x 7 support etc. A small fee for a big convenience shouldn’t hurt. But, to gather more and more customers, there are several banks that provide credit cards in UAE for no annual fees. Here’s a list of a few cards that come with no annual fees:
Features:
- Minimum Salary – AED 5000
- Annual Fees is AED 0 forever
- Upto 5% unlimited cashback
- 20% cashback on Zomato, Netflix, etc.
ADIB Cashback Visa Platinum Card
Features:
- Minimum Salary- AED 5000
- Interest rate- 2.99%
- Annual Fees: 0
- Cashback: Yes
- Free 4 supplementary cards
- 100% cash withdrawal facility
Check: The best Cashback credit card UAE
Features:
- Minimum Salary- AED 35000
- Interest rate- 2.95%
- Annual Fees: 0
- Cashback: Yes
- Avail airport lounge access, discounts on shopping, travel, chauffeur rides and much more
Features:
- Minimum Salary- AED 5000
- Interest rate- 3.09%
- Annual Fees: 0
- Cashback: No
- Earn rewards for every AED spent
- 25% discount on dining outlets
- Access to airport lounges
Dubai Islamic Bank Prime Classic
Features:
- Minimum Salary- AED 5000
- Interest rate- 3.25%
- Annual Fees: 0
- Cashback: No
- Up to 80% cash withdrawal limit
Features:
- Minimum Salary- AED 5000
- Interest rate- 3.19%
- Annual Fees: 0
- Cashback: No
- Get discounts on money spent and dining benefits
There are several more cards that don’t charge any annual fees. But the point to be noted is few banks provide zero annual fees for 6 or 12 months as an introductory offer. Customers must ask the bank before getting a credit card whether the validity is for a limited time or lifelong. Annual fees have an impact on your credit score if it is a zero annual fee credit card and the monthly payments are made on time then you can maintain a good credit score.
About the author
Nikitha is a Senior Analyst at MyMoneySouq.com. She has been writing about personal finance, credit cards, mortgage, and other personal finance products in the UAE. Her work on Mortgage loans has been featured by the GulfNews and other popular Financial Blogs in the UAE.
