Category: Popular

Shielding Your Finances: The Ultimate Guide to Credit Card Fraud Protection

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Credit card fraud protection is an important aspect of credit card usage in the UAE. Banks and financial institutions in the UAE take various measures to safeguard their customers against fraudulent activities. Here’s some information about credit card fraud protection in the UAE:

Fraud Monitoring Systems: Banks in the UAE employ sophisticated fraud monitoring systems that use algorithms and machine learning to detect unusual or suspicious card activity. These systems can identify patterns and behaviors that deviate from the norm, helping to detect and prevent fraudulent transactions.

SMS and Email Notifications: Many banks in the UAE send real-time SMS or email notifications to their cardholders for every transaction made with their credit cards. These notifications provide details of the transaction amount, merchant name, and location, allowing cardholders to quickly identify any unauthorized activity.

EMV Chip Technology: Most credit cards in the UAE are equipped with EMV (Europay, Mastercard, and Visa) chip technology. These chips store encrypted data and provide an added layer of security compared to traditional magnetic stripe cards. EMV chips make it more difficult for fraudsters to clone or counterfeit cards.

Secure Online Transactions: Banks in the UAE often provide additional security measures for online transactions. This may include two-factor authentication, One-Time Passwords (OTP), or Verified by Visa/Mastercard SecureCode systems, which require cardholders to authenticate their identity before completing an online purchase.

Card Blocking and Hotline Support: In the event of a lost or stolen card, banks in the UAE typically offer 24/7 hotline support for customers to report the incident and request immediate card blocking. Quick reporting minimizes the risk of unauthorized transactions and reduces potential losses.

Banks Within UAE Calling from Outside UAE
ADCB 600 50 2030 97126210090
FAB 600 52 5500
ADIB 600543216 / 800200( Priority Banking)/whatsapp +971 600 543216
ENBD 600540000
Citibank 971 4 311 4272/  971 4 311 4653 (Citigold)
Mashreq 800-2278 971 4 4246620
Rakbank 9714 2130000 9717 2064444
SCB 600 5222 88 971 600 5222 88
HSBC 600 55 4722 97142288007
DIB 971 4 609 2222
EI 600 599 995 971600599995

 

 

Liability Protection: In the UAE, credit cardholders are protected by liability limits for unauthorized transactions. If a cardholder reports fraudulent activity promptly, they are generally not held liable for fraudulent charges made on their credit card.

Enhanced Security Features: Banks in the UAE continuously update their credit card designs with enhanced security features to deter fraudsters. These may include holograms, signature panels, unique card designs, and other physical features that make counterfeiting more difficult.

Regular Account Monitoring: Cardholders are advised to regularly review their credit card statements and transaction history. Promptly reporting any suspicious or unauthorized charges to the bank can help resolve issues and prevent further fraud.

It’s important for credit cardholders in the UAE to be vigilant, protect their card information, and promptly report any suspected fraudulent activity to their bank. Additionally, it’s advisable to follow best practices such as keeping card details secure, not sharing PINs or passwords, and being cautious while using credit cards online or at point-of-sale terminals.

 

The Smart Swiper’s Handbook: Ensuring Safety in Credit Card Usage

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Credit card security is a crucial aspect of using credit cards to protect your personal and financial information. Here are some key measures and practices to enhance credit card security:

Protect Card Information: Keep your credit card physically secure. Do not share your card number, expiration date, CVV code, or PIN with anyone unless it is necessary and trustworthy. Memorize your PIN and avoid writing it down or sharing it with others.

Card Activation: Activate your new credit card as soon as you receive it. This ensures that only you can use the card.

Secure Websites: When making online purchases, ensure that you are using secure websites. Look for the padlock icon in the browser’s address bar and “https://” at the beginning of the website’s URL, indicating a secure connection.

Be Cautious with Personal Information: Be cautious about sharing personal information online, especially on social media platforms. Avoid posting pictures or messages that reveal your credit card details or other sensitive information.

Check Statements Regularly: Review your credit card statements regularly to detect any unauthorized transactions. If you notice any suspicious or unrecognized charges, report them to your credit card issuer immediately.

Monitor Account Activity: Utilize online or mobile banking services to monitor your credit card account activity frequently. Promptly report any suspicious activity or discrepancies to your credit card issuer.

Shred Documents: Dispose of credit card statements, receipts, and other sensitive documents by shredding them to prevent potential identity theft.

Phishing Awareness: Be cautious of phishing attempts. Do not click on suspicious email links or provide personal information in response to unsolicited emails or calls. Legitimate organizations will not ask you to provide sensitive information via email.

Secure Devices: Keep your devices, including smartphones and computers, protected with up-to-date security software, strong passwords, and biometric authentication methods (if available).

Lost or Stolen Cards: Immediately report lost or stolen credit cards to your card issuer. They can suspend the card and prevent unauthorized use. Save the customer service contact numbers for your credit card issuer in a secure location, separate from your card.

Enable Notifications: Set up transaction alerts or notifications through email, SMS, or mobile apps. This way, you will receive instant notifications about any activity on your credit card account.

EMV Chip Cards: Use credit cards with EMV chip technology, as they offer enhanced security compared to traditional magnetic stripe cards. EMV chip cards generate a unique transaction code for each transaction, making it harder for fraudsters to duplicate card information.

Remember, practicing vigilance and being proactive about credit card security can significantly reduce the risk of fraud and unauthorized use. Stay informed about the latest security measures and recommendations provided by your credit card issuer.

Tips to secure your passwords and personal information?

Create strong, unique passwords: Use a combination of letters, numbers, and symbols. Avoid using easily guessable information like birthdays or names. Consider using a reliable password manager to securely store and generate passwords.

Enable two-factor authentication (2FA): Activate 2FA whenever possible to add an extra layer of security. This typically involves receiving a verification code on your mobile device or email, in addition to entering your password.

Be cautious with phishing attempts: Be wary of suspicious emails, messages, or calls asking for personal information. Avoid clicking on links or downloading attachments from unknown sources. Verify the legitimacy of requests independently before providing any sensitive information.

Use secure networks: When accessing personal accounts or conducting online transactions, use secure Wi-Fi networks or consider using a virtual private network (VPN) for added security.

Keep software and devices up to date: Regularly update your operating system, antivirus software, and applications to protect against known vulnerabilities and security breaches.

Be mindful of sharing personal information: Be cautious when sharing personal information online, especially on social media platforms. Avoid oversharing details that can be used to exploit or impersonate you.

Use secure websites: When providing personal information or making online payments, ensure that websites have a secure connection (look for “https://” and a padlock symbol in the address bar) to encrypt your data during transmission.

Regularly monitor accounts and credit reports: Keep a close eye on your financial accounts for any unauthorized activity. Check your credit reports periodically to identify any suspicious accounts or inquiries.

Practice good password hygiene: Avoid reusing passwords across multiple accounts. Change passwords regularly, especially for critical accounts. If a data breach occurs, update passwords immediately.

Educate yourself about scams and security best practices: Stay informed about common scams and security threats. Read reputable sources, follow security guidelines from reliable organizations, and stay updated on the latest security practices.

By following these practices and staying vigilant, you can significantly enhance the security of your passwords and personal information.

Behind the Scenes: Unmasking the Secrets of Credit Card Payment Allocations

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When you make a payment on your credit card, how that payment is allocated depends on the specific terms and conditions set by the credit card issuer. However, in most cases, credit card payments are allocated in the following order:

Minimum Payment: If you make a payment that is equal to or greater than the minimum payment due, the first portion of the payment is typically allocated towards satisfying the minimum payment requirement. This ensures that you meet the minimum payment obligation for that billing cycle.

Fees and Charges: If you have any fees, such as late payment fees or annual fees, the next portion of your payment may be allocated to cover those charges. This helps to clear any outstanding fees on your credit card account.

High-Interest Balances: If you have balances on your credit card with different interest rates, such as balances from cash advances or balance transfers, the payment may be applied towards the higher-interest balances first. This helps to minimize the amount of interest charged on those balances.

Regular Purchases: After addressing any minimum payment obligations, fees, and high-interest balances, the remaining portion of your payment is usually applied to your regular purchases. This helps to reduce your outstanding balance from everyday transactions.

It’s important to note that the specific allocation of payments can vary among different credit card issuers and may be subject to change. It’s always recommended to review the terms and conditions provided by your credit card issuer to understand how payments are allocated on your specific card.

Additionally, if you have any specific payment instructions or preferences, such as allocating the payment to a specific balance or category, it’s advisable to contact your credit card issuer and communicate your preferences in advance. They can provide you with information on how they handle payment allocations and any options available to you.

 

 

 

 

 

 

Travel Insurance on Credit Cards

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Credit card travel insurance is a type of insurance coverage that is often offered as a benefit or add-on feature with certain credit cards in the UAE. It provides various forms of insurance protection during your travels. Here’s some information about credit card travel insurance in the UAE:

Coverage Benefits: Credit card travel insurance in the UAE typically offers coverage for the following aspects of your trip:

Trip cancellation or trip interruption: Reimbursement for non-refundable expenses if your trip is canceled or cut short due to covered reasons.

Travel medical insurance: Coverage for emergency medical expenses incurred during your trip, including hospitalization, doctor visits, and medication.

Baggage and personal belongings: Reimbursement for lost, stolen, or damaged baggage and personal items.

Flight and travel accidents: Coverage for accidental death or disability resulting from a travel-related incident.

Travel delays: Compensation for additional expenses incurred due to significant flight or travel delays.

Emergency evacuation and repatriation: Coverage for the costs associated with emergency medical evacuation or repatriation to your home country.

Eligibility and Activation: Credit card travel insurance is often activated automatically when you use your eligible credit card to pay for a significant portion of your travel expenses, such as flights, accommodations, or travel packages. However, the specific activation requirements may vary between credit card issuers, so it’s essential to review the terms and conditions of your credit card to understand how to activate the insurance coverage.

Coverage Limits and Conditions: Credit card travel insurance usually has coverage limits, conditions, and exclusions. The coverage amount may vary based on the type of credit card and the level of benefits associated with it. It’s crucial to familiarize yourself with the policy details, including coverage limits, claim procedures, and any exclusions or pre-existing condition limitations.

Travel Requirements: Credit card travel insurance in the UAE typically requires that a significant portion of your travel expenses be charged to the credit card in order to activate the coverage. This ensures that you qualify for the insurance benefits. Some credit cards may also require you to inform the bank or insurance provider about your travel plans before you depart.

Additional Coverage and Upgrades: Some premium credit cards in the UAE offer enhanced travel insurance benefits, such as higher coverage limits, additional coverage for activities like adventure sports or rental car insurance, and access to emergency travel assistance services.

Exclusions and Limitations: Credit card travel insurance may have exclusions and limitations, such as pre-existing medical conditions, high-risk activities, and certain destinations or regions that may not be covered. It’s important to carefully review the policy details to understand any specific limitations or exclusions that may apply.

It’s crucial to note that the specific terms, coverage, and conditions of credit card travel insurance may vary between different credit cards and issuers. It’s advisable to review the terms and conditions of your credit card and contact the credit card issuer or insurance provider for specific details about the travel insurance coverage associated with your card.

 

Activate with Ease: Your Essential Guide to Getting Your Credit Card Up and Running

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To activate your credit card in the UAE, you typically have a few options:

Activate Online: Many credit card issuers provide online activation services through their internet banking portals or mobile apps. You can log in to your account using your credentials and look for the option to activate your credit card. Follow the instructions provided, which may include entering the card details and verifying your identity.

Activate via Phone: Some credit card issuers have dedicated activation helplines or customer service numbers. You can contact the bank’s customer service team and inform them that you would like to activate your credit card. They will guide you through the process and may ask for specific information, such as the card number and your personal details, to verify your identity.

Activate through ATM: Certain banks allow credit card activation through their ATMs. Insert your credit card into the ATM, follow the instructions on the screen, and select the option for credit card activation. You may need to enter your PIN or other details to complete the activation process.

Activate via Branch Visit: If you prefer a face-to-face interaction, you can visit the nearest branch of your credit card issuer. Bring your credit card, identification documents, and any other requested information. A bank representative will assist you with the activation process and provide any necessary guidance.

It’s important to note that the specific activation process may vary depending on the credit card issuer. It’s advisable to refer to the instructions provided with your credit card or contact the issuer’s customer service for precise information on how to activate your specific credit card in the UAE.

The steps to activate a credit card may vary depending on the credit card issuer and their specific procedures. However, here are the general steps involved in activating a credit card:

Check Activation Instructions: Review any activation instructions or materials provided with your credit card. This could be a letter, email, or included documentation that outlines the activation process specific to your credit card issuer.

Gather Required Information: Ensure you have the necessary information on hand. This typically includes your credit card number, the expiration date, the card’s security code (CVV/CVC), and any other personal details required for verification.

Choose Activation Method: Determine the activation method provided by your credit card issuer. Common options include online activation, phone activation, ATM activation, or activation through a branch visit. The instructions provided by your credit card issuer will guide you on the available methods.

Online Activation:

  • Visit the credit card issuer’s website or mobile app.
  • Log in to your account using your credentials or create a new account if necessary.
  • Locate the credit card activation section or option.
  • Enter the required information, such as your credit card details and personal information.
  • Follow any additional prompts or instructions to complete the activation process.

Phone Activation:

  • Contact the credit card issuer’s activation helpline or customer service number.
  • Follow the automated prompts or speak with a customer service representative.
  • Provide the requested information, including your credit card details and personal information, for verification.
  • Follow any further instructions or confirmations provided to complete the activation.

ATM Activation:

  • Find a designated ATM affiliated with your credit card issuer.
  • Insert your credit card into the ATM.
  • Follow the on-screen instructions and select the option for credit card activation.
  • Enter the required information, such as your PIN or other details, as prompted.
  • Complete the activation process as directed by the ATM.

Branch Visit Activation:

  • Visit a branch of your credit card issuer.
  • Bring your credit card, identification documents, and any other requested information.
  • Speak with a bank representative and inform them that you would like to activate your credit card.
  • Provide the necessary information and complete any paperwork or verification processes required.
  • Follow any additional instructions provided by the bank representative to finalize the activation.

Remember to carefully follow the instructions provided by your specific credit card issuer to ensure a successful activation. If you encounter any difficulties or have questions during the process, contact the credit card issuer’s customer service for assistance.

 

The Credit Card Chronicles: From Application to Approval

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To apply for a credit card in the UAE, you can follow these general steps:

Research and Compare Credit Cards: Start by researching different credit cards available in the UAE market. Compare their features, benefits, interest rates, fees, and eligibility criteria to find a card that aligns with your financial needs. Soulwallet offer several options to narrow down customers’ selection. Some of the popular pages are listed below

Check Eligibility Requirements: Review the eligibility criteria set by the credit card issuer. This typically includes factors such as minimum age, minimum income requirement, and employment status. Ensure that you meet the basic eligibility criteria before proceeding with the application.

Gather Required Documents: Prepare the necessary documents required for the credit card application. Commonly requested documents include a copy of your passport or Emirates ID, proof of income (such as salary slips or employment letter), bank statements, and proof of address (such as utility bills or rental agreements).

Submit Application Online or In-Person: Depending on the credit card issuer, you can either apply online through their website or visit a branch in person to submit your application. Online applications are usually straightforward and convenient, while in-person applications allow you to seek assistance from bank representatives. Below banks in the UAE have a seamless online application process. You can now apply directly from Soulwallet after reviewing the features and benefits. Click on the below links to find out more.

Apply directly through Soulwallet on the bank’s website.

Complete the Application Form: Fill out the credit card application form with accurate and complete information. Ensure that you provide all the necessary details and double-check for any errors before submitting the form.

Provide Supporting Documents: Along with the application form, attach the required supporting documents mentioned by the credit card issuer. Make sure to include clear and legible copies of the documents as per their specifications.

Await Processing and Approval: After submitting your application, the bank will review your application and assess your creditworthiness. This process may take a few days to a few weeks, depending on the bank and their internal procedures. The bank will notify you of the application status once it’s reviewed.

Credit Limit and Terms: If your application is approved, the bank will provide you with the details of your credit limit, interest rate, fees, and other terms and conditions associated with the credit card. Review these details carefully before accepting the offer.

Activate and Start Using the Credit Card: Once you receive your credit card, activate it as per the instructions provided by the bank. Familiarize yourself with the card’s features, payment due dates, and any additional services or benefits it offers.

Remember to exercise responsible credit card usage by making timely payments, keeping track of your expenses, and managing your credit responsibly to maintain a healthy credit profile.

It’s important to note that specific application processes and requirements may vary among different banks and credit card issuers. Therefore, it’s recommended to visit the respective bank’s website or contact their customer service for detailed and up-to-date information on applying for a credit card in the UAE.

Credit Cards Unveiled: Unlocking the Basics for Financial Freedom

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Credit cards are financial tools that allow individuals to make purchases on credit. Here are some key aspects of credit card basics:

Definition: A credit card is a payment card issued by a financial institution that allows the cardholder to borrow funds to make purchases, with the promise to repay the borrowed amount later.

Credit Limit: Each credit card has a predetermined credit limit, which is the maximum amount the cardholder can borrow using the card. The credit limit is based on factors such as the cardholder’s creditworthiness, income, and repayment history.

Cardholder Agreement: When you receive a credit card, you enter into a cardholder agreement with the issuing bank. The agreement outlines the terms and conditions of card usage, including interest rates, fees, and payment obligations. It is important to read and understand this agreement thoroughly.

Billing Cycle: Credit card activity is typically organized into billing cycles, which are usually monthly periods. During a billing cycle, the cardholder can make purchases or use the card for transactions. At the end of the cycle, a billing statement is generated, summarizing the transactions and outstanding balance.

Minimum Payment: The credit card statement indicates the minimum amount the cardholder must pay by the due date to remain in good standing. This amount is typically a small percentage of the total balance or a fixed minimum, but it is important to note that paying only the minimum can lead to interest charges and a prolonged repayment period.

Interest Rates: If the cardholder does not pay the full outstanding balance by the due date, the remaining balance accrues interest. Credit cards often have high-interest rates, known as Annual Percentage Rates (APR). It is advisable to pay off the balance in full each month to avoid interest charges.

Grace Period: Credit cards often provide a grace period, which is the time between the purchase date and the due date for payment. If the balance is paid in full within this period, no interest is charged. Grace periods usually apply only to new purchases and not to cash advances or balance transfers.

Fees: Credit cards may have various fees associated with their use. Common fees include annual fees (charged annually for card membership), late payment fees (if the minimum payment is not made by the due date), over-limit fees (if the cardholder exceeds the credit limit), and foreign transaction fees (charged for transactions made in a foreign currency or country).

Credit Score Impact: Credit card usage and repayment history have an impact on your credit score. Timely payments and responsible credit card management can help build a positive credit history, while missed payments or high credit card utilization can have a negative impact.

Rewards and Benefits: Many credit cards offer rewards programs, such as cashback, points, or travel rewards, where cardholders earn rewards for their spending. Additionally, credit cards may provide benefits like purchase protection, extended warranties, travel insurance, and access to exclusive events or airport lounges.

Using a credit card can offer several advantages, but it also comes with certain drawbacks. Here are some pros and cons to consider when using a credit card:

Pros of using a credit card:

Convenience: Credit cards provide a convenient and widely accepted payment method, allowing you to make purchases online, in-store, and while traveling without carrying cash.

Building Credit History: Proper and responsible use of a credit card can help establish or improve your credit history. Regular, on-time payments and low credit utilization can positively impact your credit score.

Rewards and Perks: Many credit cards offer rewards programs that allow you to earn cashback, points, or airline miles on your purchases. These rewards can be redeemed for discounts, free flights, hotel stays, or other benefits.

Purchase Protection: Some credit cards provide purchase protection, which can offer additional coverage against theft, loss, or damage for items bought with the card. This can provide peace of mind when making expensive purchases.

Emergency Situations: Credit cards can be a helpful backup during emergencies or unexpected financial situations when immediate funds are needed.

Cons of using a credit card:

High-Interest Rates: If you don’t pay off your credit card balance in full each month, you may be subject to high-interest charges, resulting in the accumulation of debt. Paying only the minimum amount due can lead to long-term debt and interest payments.

Potential Overspending: Having a credit card may tempt you to spend beyond your means. It’s essential to exercise self-discipline and avoid unnecessary purchases or exceeding your budget.

Fees and Penalties: Credit cards may come with annual fees, late payment fees, cash advance fees, or foreign transaction fees. Failing to make payments on time or exceeding your credit limit can also result in penalties.

Negative Impact on Credit: Misusing a credit card, such as making late payments or maxing out your credit limit, can negatively affect your credit score and make it challenging to obtain loans or other credit in the future.

Security Risks: Credit card fraud and identity theft are potential risks. Protecting your credit card information, monitoring transactions, and promptly reporting any unauthorized activity are crucial to mitigate these risks.

It’s important to note that the pros and cons of using a credit card can vary depending on individual circumstances and financial habits. Responsible usage, such as paying bills on time, keeping low balances, and being mindful of spending, can maximize the benefits while minimizing the disadvantages of using a credit card.

Understanding these credit card basics is essential for responsible credit card usage. It’s important to use credit cards wisely, pay bills on time, and keep track of spending to maintain a healthy financial position.

Unlock VIP Travel: Credit Cards with Exclusive Airport Lounge Access

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In the UAE, several credit cards offer airport lounge access as a perk. Here are a few examples:

Emirates Skywards Credit Card: This credit card, offered in partnership with Emirates and multiple UAE banks, provides complimentary access to Emirates lounges worldwide, along with other travel benefits.

ADCB Traveller Credit Card: This credit card from Abu Dhabi Commercial Bank offers free access to airport lounges across the globe, allowing cardholders to relax and enjoy amenities before their flights.

Dubai First Royale Mastercard: This premium credit card provides exclusive access to select airport lounges worldwide, allowing cardholders to unwind and enjoy luxurious services during their travels.

HSBC Black Credit Card: HSBC’s premium credit card offers unlimited airport lounge access through its LoungeKey program, granting cardholders entry to lounges worldwide.

Citi Prestige Credit Card: This high-end credit card from Citibank offers complimentary access to over 1,000 airport lounges globally, making travel experiences more comfortable and enjoyable.

It’s important to note that the availability of specific credit cards with airport lounge access may vary, and the mentioned cards are subject to change. Additionally, each credit card may have specific terms, conditions, and eligibility criteria associated with their lounge access benefits. It’s recommended to check with the respective banks or credit card issuers for the most up-to-date information on credit cards offering airport lounge access in the UAE.

To find out if your credit card provides access to airport lounges, you can follow these steps:

Check the credit card’s terms and conditions: Start by reviewing the terms and conditions of your credit card. Look for any mentions of airport lounge access or related benefits. You can find this information on the credit card issuer’s website or in the documentation provided when you received the card.

Contact the credit card issuer: If you can’t find the relevant information in the terms and conditions, the next step is to contact the customer service department of your credit card issuer. You can typically find their contact information on the back of your credit card or on the issuer’s website. Reach out to them and inquire about the airport lounge access privileges associated with your card.

Visit the credit card issuer’s website: Many credit card issuers have dedicated sections on their websites that outline the benefits and features of each credit card they offer. Browse through your credit card’s specific page or look for a benefits guide provided by the issuer. This guide should detail any airport lounge access privileges associated with your card.

Check with the airport lounge program: Some credit cards provide access to airport lounges through specific lounge programs like Priority Pass, LoungeKey, or American Express Centurion Lounges. Visit the website of the respective lounge program and search for your credit card to see if it offers access to their lounges. These programs often have a list of participating lounges and the credit cards that provide access.

Soulwallet offers exclusive section to identify cards which provides airport lounge access. Soulwallet specializes in comparing credit cards and their benefits providing detailed information about each card’s airport lounge access privileges.

If you are looking for airport lounge access with your credit card specifically in the UAE, here are a few options to consider:

Emirates-Cobrand Credit Cards: Emirates offers co-branded credit cards in partnership with various banks in the UAE, such as Emirates NBD and ADCB. These credit cards often provide complimentary or discounted access to Emirates lounges at Dubai International Airport and other airports worldwide, depending on the card tier and benefits.

Diners Club: Diners Club is known for its airport lounge access program. While Diners Club is not as widely accepted as Visa or Mastercard, it does offer access to select airport lounges in the UAE and globally. Check if your credit card is a Diners Club card and review their lounge access program for more information.

Premium and World Elite Mastercard: Some premium and World Elite Mastercard credit cards offer lounge access privileges through the Mastercard Airport Experiences provided by LoungeKey program. This program provides access to a network of airport lounges worldwide, including those in the UAE.

Visa Infinite and Visa Signature: Visa Infinite and Visa Signature credit cards often come with airport lounge access benefits. These benefits can vary depending on the specific card issuer and the region. Check with your credit card issuer to see if your Visa Infinite or Visa Signature card provides lounge access in the UAE.

Independent Lounge Access Programs: There are independent lounge access programs like Priority Pass and LoungeKey that provide access to a network of lounges worldwide, including the UAE. Some credit cards offer membership to these programs as a card benefit. Check if your credit card provides complimentary or discounted membership to such programs.

It’s important to note that the specific lounge access benefits associated with each credit card can vary, so it’s crucial to review the terms and conditions or contact your credit card issuer directly to confirm the availability of airport lounge access and any associated fees or conditions.

Remember that airport lounge access benefits can vary depending on the type of credit card you have, its annual fee, and any additional perks or reward tiers associated with the card. Make sure to check the specific terms and conditions of your credit card to understand the exact benefits available to you.

 

 

Credit Score: What is a Credit Score and How Does it Work?

Check Credit Score in UAE: The Importance of Credit Scores and How They Are Calculated

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Checking your credit score is an important step in managing your financial health, as regularly checking your score can help you make informed financial decisions and improve your creditworthiness. A credit score is a reflection of an individual’s financial life, and it gives banks, lenders and other financial services insight into how responsible you are when it comes to paying off their credit cards, loans and even other bills in a timely manner. This helps the banks, lenders, and other financial services assess the borrower’s eligibility when they apply for a mortgage, credit card or loan.

A credit score can be considered the most important number when it comes to financial matters.

What is a Credit Score?

A credit score is a three-digit number that is independently compiled and can decide about the creditworthiness of the customer and how likely they are able to repay the mortgage, credit card bills or loans on time. In simple words, a credit score represents a person’s debt paying capability. The credit score gives information about the customer’s debt payment behaviour, history of repayments, associated risks, and if there were any defaults in payments.

The credit score number ranges from 300 to 900. A lower credit score indicates that there is a higher risk associated with the customer paying back the loan, mortgage, or bills. A lower score could affect the customer’s loan or mortgage application, which may even lead to the application being rejected or a reduction of the loan amount and a higher rate of interest. A higher credit score is preferred as a higher score indicates a lower credit risk with the customer. Customers with a higher credit score could be eligible for faster loan approvals and a lower rate of interest.

A rating above 680 is considered a good credit score in the United Arab Emirates, whereas a score of 300 to 619 is considered to be a poor credit score. A credit score from 620 to 680 is generally interpreted as a fair score. A score above 730 is classified as an excellent credit score.

Why is Credit Score Important in the UAE?

When an individual or a company applies for a loan or credit card, lenders like banks and financial institutions would like to have the information to determine how likely their customers can repay their debts and whether the customer would be a high-risk or high-risk low-risk customer. Hence, credit score plays an important role in whether the customer is able to secure a loan or mortgage and what terms and conditions, limits, or rewards may be offered to them on their credit cards. Customers with higher scores are often able to obtain preferential interest rates from banks and financial institutions.

Why is it Important for an Individual to Track the Credit Score in the UAE?

It is important for banks and financial institutions to track credit scores to know if and how much risk their customers carry. It is also important for individuals to know their scores so that they may start spotting and rectifying their credit reporting errors and improving their own credit usage habits. Even though the bank or financial institution uses the credit score and report to guide their lending decisions, it ultimately depends on the individual and their own criteria and usage of their credit behaviour for the loan to get accepted or rejected.

What is AECB?

AECB stands for Al Etihad Credit Bureau, which is a committed financial institution that collects credit data from companies, banks, financial institutions, and individuals. It Is a Public Joint Stock Company that is owned and operated by the Federal Government of the United Arab Emirates. This institute is responsible for collecting financial and credit information from all organisations in the UAE and using it to prepare AECB reports and AECB credit scores. Companies and individuals can both obtain their credit scores from the AECB after paying a small fee.

How Does the AECB Collect Information?

A credit report can only be made if an individual or an institution has taken credit in their name through a loan, credit card, mortgage, or bills. The organisation AECB collects this data from banks, financial institutions, and other companies like the telecom company. There are also plans to include utility ills, government bills, tenancy, court data and salary to the credit report for a more accurate profile. AECB is also working with the United Arab Emirates’ three main jurisdictional courts in Dubai, Abu Dhabi, and Ras al Khaimah, as well as other federal courts, to ensure any rulings against individuals that include a payment obligation are recorded in the future.

How is AECB Credit Score Calculated in the UAE?

The credit score is calculated using over 2,000 data points from various sources such as banks, financial institutions, telecom and other utility companies, and courts. The credit score also changes depending on an individual or company’s recent financial behaviour.

The AECB calculates the credit score on an aggregation of the following factors:

  • Payment history
  • Length of credit history
  • Types of accounts
  • Recent credit activity
  • Debt accumulation
  • Available credit
  • Public records

The following factors are not considered by the AECB while calculating the credit score:

  • Savings and investments
  • Personal information
  • Medical information
  • Salary or income
  • Employment history
  • Marital status

How Can an Individual Find Their UAE Credit Score?

In the UAE, an app is available to help an individual have access to their credit score and their credit report.

An individual can follow the following procedure to access their credit score and report:

  • Download the free AECB app from the App Store or via Google Play
  • Scan the Emirates ID and upload it to the app
  • Register and create a new password
  • Pick a product like a credit score, credit report or both
  • Pay the fee (AED 105) for the credit report using a credit or debit card.
  • Once payment is made, you will be able to view and download your credit report and credit score.

An individual can also get access to their credit report and score online via the AECB’s official website at https://aecb.gov.ae/. One can also visit AECB’s branches in Dubai or Abu Dhabi to get their credit score or credit report.

How Much Does It Cost to Obtain an AECB Credit Report?

If companies or individuals would like to get their AECB credit score and AECB report, they can do so for a small fee. It usually costs about AED 84 plus VAT to generate an AECB report from AECB for individuals and an estimated AED 157.5 plus VAT to generate AECB reports for companies. This fee is applicable every time an individual or a company wishes to generate their credit score from AECB.

What is AECB Credit Score Used For?

AECB credit scores are one of the most important documents for lenders like banks and financial institutions and other institutions that lend money as a credit score is a direct reflection of an individual’s creditworthiness.

Credit scores can be used in the following ways by banks and other different entities.

  • By banks while considering applications to provide loans to an individual or a company
  • By banks, while considering applications to provide credit cards to an individual or a company
  • By insurance companies when considering insurance plan applications
  • By home rental agencies and landlords when evaluating rental applications for properties or other similar organisations
  • By individuals or companies when attempting to get unsecured loans
  • By credit card companies when deciding on credit limits and interest rates for their customers
  • By employers when conducting background checks on potential employees
  • By utility companies when deciding whether to provide services to customers on a postpaid basis
  • By government agencies, when assessing an individual or a company’s financial standing for licensing or regulatory purposes
  • By debt collectors when determining the likelihood of a debtor being able to repay a debt
  • By investment firms when assessing the risk of potential clients for investment purposes.

How is an Individual’s Creditworthiness Determined?

On a daily basis, the AECB monitors over 2,000 data points, which includes information collected from banks, financial institutions, insurance companies, telecom operators, utility providers and the courts of the UAE. An individual’s personal score is then calculated by assessing whether they make the payments towards their credit cards, insurance premiums, telephone, and other bills by their due date. Factors like the number of loans and credit cards they have or have applied for and if there were any missed or late payments are also affecting the credit score. This score is dynamic and changes in line with recent patterns of the individual as it is reflected in their credit report. For example, if an individual has missed a few months’ payments despite having a stellar track record going back years, it could still lead to a significant drop in their credit score.

Who Calculates AECB Credit Score in the UAE?

The AECB is a public joint stock company which is wholly owned by the UAE Federal Government. They are responsible for the computation of credit scores which has been mandated by the UAE Federal Law no. (6) of 2010 to calculate credit scores and publish credit reports accordingly.

Who Has Access to an Individual’s Credit Data?

Mainly banks and financial institutions access an individual or a company’s credit score and credit report to determine whether they are a good candidate to lend to. Apart from salaries and employment or business details, banks and financial institutions are also increasingly factoring in credit scores to assess their customer’s creditworthiness. Some real estate companies in the UAE also run credit checks on prospective tenants to eliminate the risk of defaults and rental disputes.

What is a Credit Report?

A credit report is a document that contains an individual’s personal details and credit score along with all credit-related products, like payment history, the number of loans approved and their amounts, credit cards in use and the frequency of the credit card payments, current unpaid bills, and debts, bounced cheques and defaults if any. A credit report can also include details of previous loans, loans that have been issued or accepted and rejected, the number of credit enquiries, credit application status and other information. All this information gathered together forms a credit report and will generate a score which is called a credit score.

Factors to look out for in a Credit Report

When reviewing an AECB credit report, there are several key elements to pay attention to in order to fully understand your credit profile and make informed decisions about your finances. Here are some things to look for:
  • Credit Summary
  • Correct Address
  • Employer Information
  • Account Details
  • Inquiries

What is Credit Bureau?

A Credit Bureau is a registered organisation that keeps track of borrowers’ credit histories, like the time taken to make the repayments, any defaults, etc., to generate an AECB report and score. The report displays the credit score and his history of repayments and defaults, if any. The credit bureau collects the customer’s credit information from different sources and then sells this information to banks and financial institutions. The banks and financial institutions then use this information to generate a credit report with the credit score of the customers and represent their creditworthiness. Loans and mortgages are disbursed as per this score and the creditworthiness of the customer.

Credit bureaus also generate credit scores independently for banks, financial institutions, companies as entities and individuals.

How to do Credit Bureaus Work?

The primary function of credit bureaus is the collection, retention, and professional disclosure of credit-related information of customers and companies. When a customer decides to apply for any form of loan from a bank or financial institution, or even for a credit card from a premier banking institution, the bank and financial institution need to ensure that the customer would be able to pay back the amount and also meet the specific criteria mentioned in the policy’s terms and conditions. Since this information is complex and time-consuming to accumulate, the bank or financial institutions consult the credit bureau. The profile of the applicant is sent to the credit bureau, which is then responsible for conducting the necessary credit check. The credit bureaus maintain records of credit information about the applicant. This is classified information and is handled with care. The information credit bureaus collect is based on their own aggregated data along with any information which is available in the public domain. The bank consults this information to make their final decisions on whether to lend or not to the applicant.

What are the Benefits of a Good Credit Score?

Having a good credit score makes life easier and more beneficial for an individual as well as for a company. The benefits far outweigh the cost of neglecting the credit score.

Mentioned below are some of the lifestyle advantages to an individual in maintaining a good credit score:

  • Low-interest rates on credit cards
  • Low-interest rates on loans
  • Quicker approvals on loans
  • Better negotiating power
  • Ease in getting a credit card
  • Ease in renting apartments
  • Reduced car insurance premiums
  • Employment opportunities

Factors that can have a negative influence on Credit Score

The following factors may adversely affect the credit score of an individual or a company:

  • Defaulting on a loan or credit card payment
  • Having a high credit utilisation ratio (using a large percentage of available credit)
  • Having a short credit history
  • Opening multiple new credit accounts in a short period of time
  • Co-signing a loan for someone with poor credit
  • Being a guarantor for someone who defaults on a loan
  • Having a large amount of outstanding debt
  • Having a history of collection accounts or charge-offs
  • Making late payments on bills other than credit accounts, such as utility bills or rent payments.
  • Cancelling zero-balance credit cards
  • Transferring the balances to a single card
  • Giving authorisation to relatives with unreliable credit scores
  • Having a history of bankruptcy or foreclosure

How to Improve Credit Score in the UAE?

The following are some steps an individual or a company can take to improve their credit score in the UAE:

  • Request a higher credit limit
  • Timely payments of credit cards
  • Timely repayments of loans and debt
  • Timely payments of bills like telephone bills and utility bills
  • Removing collection accounts from the card
  • Keep credit accounts active
  • Becoming an authorised user

What if an Individual Doesn’t Have a Credit Score in the UAE?

Not having a credit score in the UAE means that that individual does not have a specific financial number tied down to their credit profile. This may be due to the individual not having used whir credit options in a long time, or the new line of credit hasn’t been officially registered yet. This does not mean that the individual automatically has bad credit. It is difficult for this individual to apply for loans and other forms of credit in banks and financial institutions without a credit score, as the banks and financial institutions prefer their customers to be able to demonstrate their ability to repay their loans and debts. An option available for such cases would be for the individual to submit a security deposit with the bank or financial institutions to get the account initiated. The security deposit can be officially treated as the credit limit and can be given back after a certain period with a responsible demonstration of the credit limit by the customer.

Soulwallet is a platform that offers unbiased and well-researched financial content along with innovative tools to help individuals make informed decisions. With a focus on transparency and simplicity, Soulwallet helps users navigate the complex world of personal finance. The platform provides valuable insights and practical advice, from credit scores to insurance plans. By empowering individuals to take control of their financial future, Soulwallet is helping to create a more financially literate society.