cashback credit cards

Best Cashback Credit Cards in May 2022

Posted on November 17, 2021May 18, 2022 by admin

Cashback credit cards are quite popular among credit card customers in the UAE. It is not easy for one to compare and identify which card offers the highest cashback on specific categories. The purpose of this article is to help customers get an overview of popular cashback credit cards available in the UAE.

Soulwallet’s analysts have done the heavy lifting to review all popular credit cards available in the UAE and provide relevant and useful information which can help you understand the key differences between each card and help one make a better-informed decision while signing up for a credit card.

What is a cashback credit card?

Cashback credit cards are credit cards that offer customers a benefit of earning back a percentage of his or her spend on the card through a direct cash back credit. For example, if a card offers you cashback of 5% on all supermarket spends and you use this card in a supermarket for AED 1,000 in a particular month, the bank will give you a credit of AED 50 (5% of AED 1,000) in your next credit card statement. This means that you have effectively saved AED 50 and your supermarket spend only actually cost you AED 950. Cashback credit cards can be very useful in helping you maximize your savings by simply using your credit card.

You must always be aware of the specific conditions associated with the cash back credit card. Almost all cash back credit cards have very specific conditions on what type of purchases allow you to earn cash back credits. These could be based on categories such as grocery or supermarket purchases, fuel purchases, retail purchase, dining and restaurant purchases and so on. In addition to the specific category of spend almost all cash back credit cards will have limits on how much cash back you can earn. This could be based on a maximum spend per category type, for example, cash back credit on grocery purchases could be capped at grocery spends of AED 3,000 per month. In such a scenario, if the cash back percentage was 5% then the maximum amount you can save each month on grocery spends would be AED 150 (5% of AED 3,000).

Certain banks could also set minimum spend requirements to be eligible to earn cash back credits. Usually, this is based on minimum spends on a specific category of purchases or on the overall total spend on the credit card for the month. For example, a bank could specify that cash back credits can be earned if a minimum spend of AED 1,000 is reached during the month.

The form of cash back given to you can also vary. Some credit cards offer you direct statement credits for the value of cashback earned. These can then be considered as good as a cash payment. Some cashback credit cards offer gift vouchers at specific stores or malls for the value of cashback earned. Some banks may require customers to contact them to redeem cashback miles while others may simply credit the cashback earned to customers without any request having to be placed (automatic cashback).

As you can see, there are a lot of aspects to keep in mind in trying to ascertain the most suitable cashback credit card for you. Having a sound understanding of the cashback conditions of any credit card and your specific spend patterns will help you make an informed decision on the cashback credit card to choose for you. However, since there are more than 200 credit cards in the UAE market and a lot of them offering some form of cashback, it is almost impossible for one to understand which card is most suitable to them. Therefore, a cash back simulator as provided by SoulWallet can be invaluable in saving you the trouble of hours of research in identifying the right credit card for you.

FAB Cashback Credit Card, Mashreq Cashback Credit Card and Rakbank Titanium Credit card are available for customers earning a fixed salary of AED 5000 per month.

Bank	Card Name	Joining offer	Annual Fee	Sal required
Citi	Citi Cashback	AED 500 Cashback as joining bonus	0	8000
FAB	FAB Cashback	AED 300 Welcome bonus	AED 315	5000
Mashreq	Mashreq Cashback	AED 500 Joining bonus (AED 100 for existing card holders)	0	5000
Rakbank	Rakbank Titanium	None	0	5000
CBD	CBD Super Saver Credit Card	None	1st year free 2nd year AMF AED 420	8000
HSBC	Cashback Credit Card	AED 300 cashback gets you started	1st year free AED 313.95 with VAT from second year	10000
Dubai First	Cashback Credit Card	AED 250 bonus cashback Complimentary 1 year Amazon	AED 400	10000
Emirates Islamic	Cashback Plus Credit Card	None	0	12000
Standard Chartered Bank	Cashback Credit Card	None	1st year free AED 525 from 2nd year	8000

Best for “International” transactions

Citibank Cashback Credit Cards has the best cashback rate of 3% unlimited on international transactions. This is followed by FAB Cashback Credit Card and Mashreq Cashback Credit Card at 2%.

Bank	Citi	FAB	Mashreq	Rakbank	CBD	HSBC	Dubai First	Emirates Islamic	Standard Chartered Bank
Card Name	Cashback Credit Card	Cashback Credit Card	Cashback Credit Card	Titanium	Super Saver Credit Card	Cashback Credit Card	Cashback Credit Card	Cashback Plus Credit Card	Cashback Credit Card
International spend	3%	2%	2%	1% for <15K 2% for >15K Spend Max Cap AED1500	1% on AED 2 spend	1%	1%	NA	2%

Best for “Groceries / Supermarket” related transactions

Fab cashback credit card offers 5% on this category however with a cap of AED 500 in a month. HSBC Cashback credit card offers 3% on this category but with a cap of AED 200 a month. These cards do not have a minimum spend requirement for earning the cashback on these categories.

Bank	Citi	FAB	Mashreq	Rakbank	CBD	HSBC	Dubai First	Emirates Islamic	Standard Chartered Bank
Card Name	Cashback Credit Card	Cashback Credit Card	Cashback Credit Card	Titanium	Super Saver Credit Card	Cashback Credit Card	Cashback Credit Card	Cashback Plus Credit Card	Cashback Credit Card
Groceries / supermarket	2%	5% - MC AED 500	1%	5% - AED 150 and MS 1500	MS >3<10K 3% 75 MS <20K 5% 100 MS >20K 10% 150	3% MC 200	5%	MS >3<10K 3%	1%

MS: Minimum Spend : This is the minimum spend required to earn cashback in this category

MC: Maximum Cap: This is the maximum cashback one could earn in this category

Best for “Fuel” related transactions

FAB Cashback credit card offers 5% on this category with a maximum cap of AED 250 a month. HSBC offers 10% however on a maximum cap of AED 100 a month.

Bank	Citi	FAB	Mashreq	Rakbank	CBD	HSBC	Dubai First	Emirates Islamic	Standard Chartered Bank
Card Name	Cashback Credit Card	Cashback Credit Card	Cashback Credit Card	Titanium	Super Saver Credit Card	Cashback Credit Card	Cashback Credit Card	Cashback Plus Credit Card	Cashback Credit Card
Fuel	1%	5% - MC AED 250	0.33%	0.25%	1% on AED 2 spend	10% MC 100	1%	NA	1%

Best for “Utility” (Electricity, water) transactions

FAB cashback credit card clearly the best on this category with a 5% cashback and a maximum cap of AED 250

Bank	Citi	FAB	Mashreq	Rakbank	CBD	HSBC	Dubai First	Emirates Islamic	Standard Chartered Bank
Card Name	Cashback Credit Card	Cashback Credit Card	Cashback Credit Card	Titanium	Super Saver Credit Card	Cashback Credit Card	Cashback Credit Card	Cashback Plus Credit Card	Cashback Credit Card
Utilities	1%	5% - MC AED 250	0.33%	0.25%	MS >3<10K 3% 75 MS <20K 5% 100 MS >20K 10% 150	1%	1%	NA	1%

Best for “Online” transactions

Dubai First Cashback card is a clear winner on this category. With no caps and no spend requirement this card offers 5% which is the best among all competitors.

Bank	Citi	FAB	Mashreq	Rakbank	CBD	HSBC	Dubai First	Emirates Islamic	Standard Chartered Bank
Card Name	Cashback Credit Card	Cashback Credit Card	Cashback Credit Card	Titanium	Super Saver Credit Card	Cashback Credit Card	Cashback Credit Card	Cashback Plus Credit Card	Cashback Credit Card
Online	1%	1%	1%	1% for <15K 2% for >15K Spend Max Cap AED1500	1% on AED 2 spend	1%	5%	NA	1%

Best for “Dining” transactions

Mashreq cashback card offers 5% on this category followed by which can go up to 2%, however with a spend requirement to be met. Emirates Islamic Offers up to 5, however with a cap of AED 200. EIB requires AED 3000 of minimum spend for cashback. ADIB Edge card offers 10% cashback on dining. Since it is a reward point card we have not included the same in the comparison.

Bank	Citi	FAB	Mashreq	Rakbank	CBD	HSBC	Dubai First	Emirates Islamic	Standard Chartered Bank
Card Name	Cashback Credit Card	Cashback Credit Card	Cashback Credit Card	Titanium	Super Saver Credit Card	Cashback Credit Card	Cashback Credit Card	Cashback Plus Credit Card	Cashback Credit Card
Dining	1%	1%	5%	1% for <15K 2% for >15K Spend Max Cap AED1500	1% on AED 2 spend	1%	1%	MS >3<10K 3%	1%

Best for other categories

Bank	Card Name	Telecom	Govt	Cinema	Education	Transport
Citi	Cashback Credit Card	1%	1%	1%	1%	1%
FAB	Cashback Credit Card	1%	1%	1%	1%	1%
Mashreq	Cashback Credit Card	0.33%	0.33%	1%	1%	1%
Rakbank	Titanium	0.25%	0.25%	50% - AED 70 MS 5000	0.25%	0.25%
CBD	Super Saver Credit Card	MS >3<10K 3% AED 75 MS <20K 5% AED 100 MS >20K 10% AED 150	1% on AED 2 spend	1% on AED 2 spend	MS >3<10K 3% AED 75 MS >20K 10% AED 150 MS >20K 10% AED 150	MS >3<10K 3% AED 75 MS <20K 5% AED 100
HSBC	Cashback Credit Card	1%	1%	1%	1%	1%
Dubai First	Cashback Credit Card	1%	1%	1%	1%	1%
Emirates Islamic	Cashback Plus Credit Card	MS >3<10K 3% MS <17.5K 5% MS >17.5K 10% MC 200 per category	NA	NA	MS >3<10K 3% MS <17.5K 5% MS >17.5K 10% MC 200 per category	NA
Standard Chartered Bank	Cashback Credit Card	1%	1%	1%	1%	1%

Few important points to consider on the below cards

CBD Supersaver Card

Maximum cap of AED 3000 across all categories.
Spend based earning of rewards per category.
Maximum cashback of AED 600 across 4 BEST categories.
Minimum spend of AED 3K required

Rakbank Titanium Credit Card

All domestic and international transactions under the category of Charities, Government Services, Bill Payments, Schools, Education, Transits, Transport, Telecommunication, Real Estate, Petrol/Gas stations, Health & Beauty, Club Membership, Computer Services, Automobiles & Vehicles and Insurance Services will earn 0.25% cashback for every AED 1 spent.

all domestic and international transactions under the category of Charities, Government Services, Bill Payments, Schools, Education, Transits, Transport, Telecommunication, Real Estate, Petrol/Gas stations, will earn 0.25% cashback for every AED 1 spent.

Emirates Islamic Cashback Plus Credit Card

A minimum spend of AED 3000 is required for earning cashback.

FAB Cashback Credit Card

Telecom excluded in utilities category
Caps for Groceries, Fuel and Utilities and no caps on other categories.

Above review is based on analysis done during the month of February 2021. The product features such as category rates, caps, spend requirement, AMF or joining offers can change. Readers are requested to validate the specifics with the banks at the time of application.

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The editorial team at Soulwallet is committed to accurate and relevant content intended to assist our readers while making personal finance decisions. We are glad to get feedback on the article and make necessary corrections if required. You can email the editorial team at support@soulwallet.com. Our editorial advice, recommendations and product assessments are not influenced by business partners.

Five Strategies to Manage Credit Card Debt Amidst Covid-19

Posted on January 24, 2021January 26, 2021 by admin

We are essentially one year since Covid-19 has utterly transformed our lives. From our constrained day-to-day routines to the way that we interact with others, we are all trying our best to retain a sense of normalcy during these uncertain times.

One area of our lives which may not seem normal is our finances. Whether you have lost your job or are struggling to pay your bills, you may have taken on credit card debt to get through this global pandemic. While it’s unclear when the pandemic will end, there are several strategies you can take today to manage your credit card debt.

Strategy One: Consolidate Your Debt

Debt consolidation can be an attractive option to manage your credit card debt. If you haven’t yet heard of debt consolidation, it is essentially taking a high-interest credit card (or credit cards) and combining your debt into one lower payment. Not only are you paying a lower interest rate, but you are paying only one credit card bill per month. In exchange,

You can leverage debt consolidation by either taking on a debt consolidation loan or by rolling over your credit card balance onto a 0% interest credit card. This strategy is more suited for individuals who have significant amounts of credit card debt, rather than those with more minimal debt.

Crucially, however, consolidating your debt may result in a longer repayment period. You may have a smaller month-to-month payment, but you may be paying more in the long run. Keep this in mind as you are considering this strategy.

Strategy Two: Try to Pay More Than Your Minimum Payment

While it may seem simple, this is an outstanding strategy to minimize your credit card debt. Credit card companies want you to pay the minimum amount on your credit card statement (which is typically 2-3% of the overall balance). However, by paying this minimum balance, you are actually paying more later. This is because interest accrues on the remaining balance. The more you have on your balance, the more interest that you will need to pay.

Because of this, you should think hard about paying more than your credit card’s minimum payment. That said, there’s a fine line between paying more than your minimum and also having free cash to spend on other daily necessities. While you will need to make that determination yourself, paying more than your minimum credit card payment can save you money in the long run.

Strategy Three: Prioritize Your Debts

Prioritizing your debts can help you save some much-needed cash. The core of this strategy is looking at your credit card balances and focusing on paying off the card with the highest interest rate. This is a simple, yet effective strategy. Higher interest rate credit cards will cost you more in the long run, so you should pay off those bills first (ideally, more than your minimum payment).

You can also prioritize paying off a credit card with the lowest balance. This can remove one balance so that you can focus on your other balances. In the end, these are two ways that prioritizing your debts can help you obtain financial relief.

Strategy Four: Become a Great Budgeter

Part of getting into credit card debt is spending money that you may not necessarily have. Because of this, one natural way to manage your credit card debt is to impose spending discipline.

This can be especially difficult amidst Covid-19. While your income may have substantially decreased, your expenses may have remained the same. As hard as it may be, see if you can cut out any extraneous expenses. You may need to make some sacrifices right now. But by doing so, you will use that cash to pay off your credit card debt. Before you know it, you will be debt-free and will be able to adopt your old lifestyle.

Strategy Five: Contact Your Creditors

This strategy may seem a bit unconventional, but it has worked in the past. If you have excessive credit card debt that you’re struggling to pay off, don’t hesitate to contact your creditors. The natural place to start is your credit card company. Do some research on their website and see if they have any type of hardship program. That hardship program may have already existed before Covid-19 or the company may have implemented a new program due to the pandemic. Check out your options and see if you are eligible for these types of programs.

If that fails, don’t hesitate to pick up the phone and directly contact your creditor. Explain your current situation and share your track record of consistent payments (if you have one). By doing this, you may find a hardship program that substantially eases your financial pressure.

Relief on the Horizon

As you can see, there are several different options that can help you manage your credit card debt. While each of these options can provide real relief, you need to determine the best option (or options) for you. From there, aggressively pursue those options. By being bold and aggressive, you will get that much closer to relieving your financial pressure.

1 Simple Way to Relax in Luxury and Style Before You Board Your Next Flight

Posted on December 16, 2019December 8, 2020 by admin

UAE airports are always buzzing with traffic. The very make of the country’s population mix drives travel and in many cases frequent travel. So, let it be travel to home country, leisure tours or even business travel, there is a significant amount of travel residents undertake.

Gone are the days where one must wait near the crowded gates with limited access to essentials such as internet access or even a seat. Lounges are a boon to travelers, a place where they can relax with their families and have a nice meal or even work without any hassles.

Access to most of these lounges is free through business class tickets or memberships. Having said that there are options available for folks who travel in lesser space as well. After spending hours on saving money on the best possible rates for your flights and bookings, it does not really make sense to spend the saves on lounge. But wait! What if it is free? All the luxury and bliss at no cost.

Most of us carry credit cards and these cards in UAE offer airport lounge access free of cost. This is seen as a favourite and useful feature which gives absolute value to customers. It does not matter which airline one flies or even which class, the free lounge access feature is available on most of the credit cards.

This article elaborates on the Airport lounge feature and the different bands and respective benefits UAE credit cards offer.

What exactly do I get free with my credit card when it comes to Airport lounge access?

Free Access to Airport Lounge

Depending on the specific credit type that one may have, free access can be availed at Airport lounges. Airport lounge offers complimentary snacks, drinks, wi-fi and glossy magazines along with a peaceful place to relax before you board.

Supplementary Card holders

If your family has supplementary cards, they can also avail the facility free of cost. It is important to note that not all card types allow supplementary cards holders. Do refer to the table below to identify which card allows supplementary card holders

Guests

In addition to supplementary card holders, some of the credit cards allow guests accompanying primary card holders as well.

Number of visits

Some of these card types have a limitation on number of visits in a calendar year, post which the bank will apply a charge in case of any usage.

It is always wise to find out which airport lounge allows free access to the credit card you hold prior to your trip. This can save a lot of unnecessary walking within the terminals and most importantly disappointment at the lounge check in counters which sometimes can have a lengthy wait line.

Note: While the above is a standard offering from the associations (Visa and Mastercard), some banks might have customized the lounge offer on their respective cards. Hence it is advisable to refer to their product features section for more details click here.

Takeaway

Travel can be more enjoyable if planned well. While complimentary Airport lounge access offered by a credit card is a no-brainer one must be aware of all the other travel related benefits credit card offers. After all, why would one say no to a free feature which could be worth thousands of dirhams otherwise.

As a personal finance aggregator Soulwallet has analysed various credit card features and rated them based on an apple to apple comparison. Let it be Golf, Airport Transfers, Valet or even Cinema offers, one can easily refer to the ratings. For more details visit us on www.soulwallet.com.

Leave your worry behind and enjoy every bit of your travel. Bon voyage!

Top 3 possible reasons why your credit card application has been rejected

Posted on November 4, 2019December 8, 2020 by admin

Credit cards are popular and convenient payment tools. It is a well-known fact that banks offer several attractive features on their best credit cards such as Cinema offers, Airport lounge access, Valet service, Golf offers and many more.

Banks are constantly looking to acquire customers who have a good track record of payments and credit history. In a country like UAE, where in 80% of the bankable population is made up of expats, it is important that banks do their due diligence prior to approving any credit facility such as credit cards or personal loans.

Banks have different under writing policies which decides the fate of one’s application? Now, Let me try and simplify the top three reasons why credit card applications get rejected.

1. Income Criteria Not Met

This is generally the first eligibility criteria that is checked. It is important to note that UAE’s central bank circular 28/2010 “Regulations for Classification of Loans and their Provisions” dictates that banks must ensure that personal loans must be given to people who earn a minimum of AED 60,000 annual income. Note, credit cards in UAE are considered as a form of personal loans and hence this applies to both credit cards and personal loans.

While the interpretation of this regulation might differ bank to bank from an implementation perspective, this criterion ensures that banks do not lend to those who earn less than AED 5000 per month considering living expenses, affordability etc.,

Over the last couple of years, banks have built a system to verify income information from each other in an automated way. This is done by reading Salary credits from your bank statements through a central system. This has relaxed banks policies on documentation requirement in the recent years.

So, in short it is important to know that one must be earning a minimum income of AED 5000 per month to avail a credit cards or personal loans in UAE.

Banks also offer cards for customers based on their income . For e.g., a Prime Infinite Credit Card from Dubai Islamic Bank is offered to a customer who has a minimum income of AED 50,000 per month.

2. Weak or Poor Credit History

In UAE, Al Etihad Credit Bureau receives financial information from all providers and provides credit reports to residents and financial institutions. The report contains records of an individual’s liabilities such as credit cards, loans etc., Banks evaluate the credit report for repayment history prior to approving applications. It is imperative that one maintains a clean credit history in order to avail any loan/credit card facility in UAE. Level of debt, payment history, credit history age has an impact on your credit score.

Below needs to be taken care to ensure a clean history.

Always pay dues on time.
On cards better to pay the entire outstanding. If not, minimum due to be met. Note, full payments may result in a higher credit score.
Avoid going over limit on your cards.
It may take more than 5 years for a credit record to be cleared hence utmost care to be taken to ensure all the above points.
One can avail their credit report online from AECB for a fee. Visit the Al Etihad Credit Bureau (AECB) for more information.

3.Debt Burden Exceeded

In UAE, banks have been regulated to ensure that financial liabilities of an individual do not exceed 50% of the monthly income. While Banks follow different processes to ascertain debt burden the general logic is explained below for simple understanding

Monthly Income: AED 10,000

Monthly financial payments (Credit card minimum dues, Loan EMIs): AED3000

Debt burden:30%

Ensure all unused credit cards are closed. Receive and maintain closure or clearance certificates from respective banks for documentation purposes. Consolidate debt as a loan so that the instalment is affordable and within the debt burden. Stay financially fit!

Takeaway

While the above 3 are the top reasons for rejections. There are 90% chances one can get their card or loan approved if the above 3 conditions are met. Roughly 10% of applications stay rejected for reasons such as verifications and other policies.

Picking the perfect credit cards in UAE for your specific needs should always be based on how you plan to spend and what your current lifestyle is like. Traditionally one signs up for a card based on sales pitch by a bank’s sales executive. Take advantage of Soulwallet’s credit card comparison platform to make sure you make an informed decision.

Credit Cards in UAE

Posted on April 22, 2019December 8, 2020 by admin

Around 71 percent of affluent residents in the United Arab Emirates own more than one credit card as per the statement of a weekly report. The majority of the residents access credit cards while 64 percent of the public use them for a day- to -day purchases. Another 63 percent admitted using credit cards when traveling abroad.

When you pay with a credit card, you are effectively borrowing money from your bank or lender. Every month you receive a statement that lists all the transactions you have made, along with place, price and sometimes even details of the item.

When it comes to credit card balance transfers and savings in Dubai, it is always advisable to pay the full outstanding on your credit card each month to avoid unnecessary fees. Most banks offer a minimum promotion rate of 2.5 percent and up to 10 percent cash back on spends. The minimum salary requirement to apply for credit cards in the UAE is 5000 AED as per the rules and specification of the banks which may vary with higher or lesser salary rates depending on the lender. The facility of balance transfer is freely available for the first 6 months with a minimum of 2 percent processing fee. Banks offer foreign currency rates with a minimum of 2 percent based on the expenditure or purchases made. If you are a frequent traveller, you might want to make sure you apply for credit cards offering lower foreign currency rates. The annual fee on a credit card will be applicable on a yearly basis as a part of your statement. Some UAE banks advertise and state that they do not charge annually, but it is preferable to opt to pay the annual fees as it has many benefits to offer.

The Soul Wallet Savings Simulator is a financial tool developed to help customers understand which credit cards offer them the best opportunity to maximize their savings. This is done based on an analysis of the customer’s unique expenditure pattern both across the type of monthly and annual expenditure and also the amount spent on each category. The unique algorithms help you ascertain which credit cards offer you the maximum savings potential for your specific spend. This varies from individual to individual.

A frequent traveler will probably consider taking a credit card that offers air miles. However, if you don’t travel a lot but like to save on your transactions, you might prefer a credit card that gives you cash back. Also, cash back amounts could vary based on the total amount you spend in a month. Visa International, MasterCard and the different banks in the UAE offer additional benefits on premium cards, such as access to airport lounges globally, discounts on dining, valet parking, free golf, cinema discounts and other transport facility benefits. You can compare all the benefits on Classic, Silver, Gold, Platinum, Titanium, Infinite and World credit card benefits or choose to search for premium cards directly. Premium cards generally require a higher income or have a higher annual fee.