The UAE's vibrant financial sector offers a wide range of credit card options catering to diverse income brackets, spending habits, and financial needs. Understanding the eligibility criteria is essential for anyone applying for a credit card. This article provides a comprehensive overview of credit card eligibility in the UAE, outlining common requirements, factors that influence approval, and tips for navigating the application process.

UAE Credit Card Eligibility

To qualify for a credit card in UAE, applicants must meet several basic requirements set by banks and financial institutions:

Minimum Age

Most banks require applicants to be at least 21 years old, though this age limit can vary

Residency

Applicants generally need to be UAE residents, which is often verified through a valid residency visa.

Minimum Salary

The minimum salary requirement is crucial and varies widely depending on the card. It can range from AED 5,000 to over AED 20,000 per month for premium cards.

Employment 

A steady job and a regular income are typically required. Some banks may ask for proof of employment or require a salary transfer to the bank. Some financial institutions request a security check based on the above profiles.

Credit Card Eligibility for Salaried Employees

The credit card eligibility for salaried employees includes certain factors apart from the in general qualifying factors. Those general qualifying factors include the age of the applicant, nationality and the credit score. You need to be at least 21 years old to checklist the age factor. You can either be a citizen of UAE or a resident or an expat of UAE for qualifying the nationality. As for the credit score, you are in need to meet the good credit score marked by the bank.

Once you meet all these basic eligibility criteria and then you are a salaried individual, you have to check with the minimum salary requirement of the type of the credit card you are going to apply for. The most noticed minimum salary requirement is AED 5,000. If your minimum salary comes under the required salary limit, you can apply for it provided with the salary documents handy. So, you are in need to submit either of the following documents for the bank to prove that you are getting the required minimum salary limit. You can either submit your salary certificate which will be received from your employer or else if you are already receiving the payslips of your monthly salary, then that will do the work. All you need to do is to submit the salary slips of your past three months with all other required documents.

Credit Card Eligibility for Self-Employed Individuals & Business Owners

If you are a self-employed individual or a business person, then there is a slight changes with the eligibility criteria. However, you are required to meet the basic eligible factors of age, nationality and credit score. As for the minimum salary requirement, you can check with the credit cards before applying. The most minimum salary limit is AED 5,000. You need to provide documents like your trade license, company registration document, past three to six months bank statements depending upon the bank’s request, security deposits or even the balance sheets. By having these documents prepared with you, you can apply for the credit card that meets your salary limit and preferences with the advantage.

Credit Card Eligibility for Expats & Non-Residents

Before applying for a credit card, it is always better to check what are the necessary documents that need to be submitted. This could avoid the last minute hassle of preparing the documents without an ease. So, here are the documents that an expat or a non resident will need to get it ready before making the credit card application. The foremost thing is you need to qualify the age limit and then you can use your passport attached with residency Visa for your address proof which thereby will prove that you are an expat or resident of UAE. You can also use your utility bills or even salary certificates to cross verify your location. This is the eligibility that comes for expats and non-residents other than the common factors.

Credit Card Eligibility for Students & First-Time Applicants

The whole eligibility criteria itself changes when it comes to credit cards for students and first time applicants. The minimum age eligibility will be 18 years to 21 years if they are students and for the first-time applicants, it is between 18 years and 60 years. However, it is always advisable to check with the bank and the credit card that you will be applying for. For the nationality, it is similar only, that they need to be either nationals or residents or expats of UAE.

When it comes to income, the students might not have an option of earning full time. For that, the banks will consider an allowance from the parents as a way that the particular student will be able to repay the amount. Rarely, some banks require the students to be in a part time job in order to approve the credit card for them. In that case, you can check with the student credit cards offered by the banks and its minimum salary limits and requirements.

On the other hand, the first-time applicants are expected to meet the minimum salary requirement if they are employed. If not, in case if you are in a part time role or job, you can check with which bank offers credit card with lower credit limits. The basic salary requirement upon first-applicants would be AED 5,000. These people also have an advantage that they don’t need the credit score as a limit or eligibility since they are either students or a first-time applicant and you will not have the option to have a good credit score.

Special Credit Card Offers & Eligibility Criteria

Special credit card includes credit cards like cashback credit cards, rewards credit cards, No Salary Transfer credit card, Zero Annual Fees credit card, Balance Transfer credit card and the list goes on. Let us look at them individually.

Cashback credit cards

The cashback credit cards will offer some percentage of cashback offer when you spend using your cashback credit card. Apart from the basic eligibility of age, nationality and credit score, you are in need to have the minimum salary requirement starting from AED 5000 and you can apply for a credit card which has it more too. These cashbacks will be applicable for dining, fuel, shopping (especially online) and groceries.

Rewards credit cards

These rewards credit cards will offer you various rewards that come with the purchases. You can use or redeem that reward point on travel, dining and other spends.

No salary transfer credit cards

You can acquire a credit card with no salary transfer speciality with the basic eligibility criteria met. The minimum income could range between AED 5,000 to AED 20,000.

Zero annual fees credit cards

The banks are offering various kinds of credit cards with zero annual fee credit cards. It needs the individual to meet all the basic requirement of age, nationality, credit score and minimum salary limit. Another perk of this credit card is that it doesn’t require a salary transfer.

Balance transfer credit cards

The balance transfer credit card will allow you to move the existing credit card debt to a new card with lesser interest rate. The interest rate would be around 1% to 3% of the amount that is being transferred. It needs the basic requirements and no salary transfer requirement. There is a limit of how much you can transfer the amount and it is advisable to check before applying.

Documentation Requirements for Credit Card Applications in the UAE

When you apply for a credit card from any banks from the UAE, you are in need to submit the following documents. 

• Passport copy

• Emirates ID

• Salary certificates or parents’ allowance (for students)

• Last 3–6 months bank statements

• Utility bill / tenancy contract

Tips for Successful Credit Card Application

Check Your Credit Score : Before applying, check your credit score with the AECB. Address any discrepancies or outstanding debts. It is recommended that one keeps a tab on their credit score periodically. A credit report can be requested from Al Etihad Credit Bureau for a charge.

Understand the Card Benefits : Match the credit card features with your financial behavior and needs. For instance, if you travel frequently, consider cards that offer travel benefits.

Prepare Documentation : Have all necessary valid documents handy, such as your passport, visa, Emirates ID, salary certificate, and bank statements.

Consider Multiple Options : Don’t apply for multiple cards at once, as this can negatively impact your credit score. Instead, choose the best option that fits your needs and apply for that one first. Make use of the comparison sites to understand more about the products as these sites provide information on most of the banks.

Follow-up : After applying, keep in touch with the bank to check your application status and provide additional information if required.

Credit History and Score

In the UAE, credit scores play a pivotal role in financial transactions, especially when applying for credit cards. Here's an in-depth look at how the credit scoring system works in the UAE and what scores are considered acceptable for obtaining a credit card. The UAE’s credit scoring system is managed by the Al Etihad Credit Bureau (AECB). The AECB collects financial information from various sources, including banks, finance companies, and telecom companies, to create credit reports and scores for individuals and companies.

How Credit Scores Are Calculated

The credit score is a numerical representation of an individual's creditworthiness, ranging from 300 to 900. It is calculated based on several factors, including:

Payment History : Timely payments on loans and credit cards improve your score, whereas late payments, defaults, and foreclosures negatively impact the score.

Credit Utilization : This refers to the amount of credit you are using compared to your credit limits. Lower utilization rates generally lead to higher scores.

Length of Credit History : A longer credit history provides more data and can lead to a higher score, assuming the history shows responsible credit use. The term that is used for customers with less than 12 months is a “Thin file” which is considered higher risk than those who have a history of more than 12 months. There can be specific policies applied by the bank for a lower number of months such as additional verifications, higher income requirements, additional documentation, employer profiles, and so on.

Types of Credit : Having a mix of credit types, such as credit cards, personal loans, and mortgages, can positively affect your score.

New Credit : Frequent applications for new credit can lower your score, as it might indicate financial distress.

Acceptable Credit Scores for Credit Cards

Scores 300 - 619 : Considered low. Applicants might find it difficult to get approved for credit cards and may only qualify for secured credit cards or products designed for low credit scores.

Scores 620 - 657 : Fair. Individuals with scores in this range are typically considered subprime borrowers and might face higher interest rates or less favorable terms.

Scores 657 – 750 : Good. This is generally considered low risk to the banks as applicants with scores in this range are likely to be approved for most credit cards.

Scores above 750 : Excellent. These scores qualify for the best available credit cards, including those with premium benefits, low-interest rates, and high credit limits.

Tips to Improve or Maintain a Good Credit Score in the UAE

Make Payments on Time : This is by far the most important factor as payment behavior impacts your credit score directly. Always pay your bills and credit card dues on time. Setting up automated payments can help avoid missed deadlines.

Manage Credit Utilization : Try to keep your credit utilization below 30% of your total available credit. It is not necessary that one needs to max out on the credit available. Keep your utilization to your needs and ensure timely payments.

Regularly Monitor Your Credit Report : You may have a card that is accumulating charges since you forgot to close it. Hence, do check your credit report periodically for any inaccuracies or fraudulent activities. This can be done through the AECB’s website, and you can raise it to the concerned banks and have these issues fixed.

Limit New Credit Applications : Only apply for new credit, when necessary, as multiple credit inquiries can lower your score.

Maintain a Healthy Mix of Credit : Diversifying the types of credit can positively impact your score.

By understanding and managing these factors, individuals in the UAE can improve their credit scores, enhancing their eligibility for credit cards and other financial products.

Debt-Burden Ratio (DBR)

The DBR is another critical factor considered by banks. It measures the proportion of a person’s income that goes towards repaying debts, including loans and credit card payments:

DBR Limit: In the UAE, the maximum DBR allowed is 50% of your monthly income. This means that all your monthly debt repayments combined should not exceed half of your monthly earnings.

Additional Factors

Banking Relationship : Existing relationships with a bank can facilitate easier approval, especially if you have a history of responsible financial behavior with that institution. Banks do have more comfort lending to customers who have their salaries credited to their banks.

Type of Employment and Employer : Working for a well-recognized company or a government entity can improve your chances of approval as it implies job security and a stable income. Most companies have a process of identifying specific employers and listing them to offer credit to their employees. These listed companies are supposed to be low in risk considering the employment stability they offer to their employees. Having said that companies can move in and out of the listed zone based on the way their employees perform. The advantage of such listed companies is that the requirements for credit issuance are generally more lenient than those that are not listed.

Conclusion : Qualifying for a credit card in the UAE requires understanding and meeting the banks' eligibility criteria, including financial stability, creditworthiness, and compliance with the DBR. By carefully preparing and choosing the right credit card, you can manage your finances more effectively and take advantage of the benefits credit cards offer.