How To Choose The Right Credit Card When You Have a Bad Credit?

Understanding Your Credit Score in United Arab Emirates

In the UAE, credit scores range from 300 to 900, with higher scores indicating good credit history. The Al Etihad Credit Bureau (AECB) determines these scores based on factors like payment history, credit utilization, and length of credit history. A low score may limit your options, but there are specific credit cards for bad credit.

Types of Credit Cards for Bad Credit

For those with less-than-stellar credit scores, there are options. Some banks offer secured credit cards, which require a deposit as collateral. Others have unsecured cards, with higher interest rates and lower credit limits. These cards can be stepping stones towards rebuilding your credit.

Choosing Between Secured and Unsecured Cards

Secured cards are less risky for the bank, as they hold a deposit that can cover unpaid balances. This makes them easier to obtain and can help rebuild credit. On the other hand, unsecured cards don’t require a deposit but may have high interest rates. Your choice depends on your financial situation and risk tolerance.

Tips for Improving Your Chances of Approval

• Regularly check your credit score.
• Pay bills on time.
• Lower your credit utilization ratio.
• Avoid opening new credit accounts frequently.
• Keep old credit accounts open, as long as they’re in good standing.

Key Features to Look For in Credit Card Providers

Here are some top players in the UAE credit card market:

1. Emirates NBD: Known for its diverse card options, Emirates NBD offers cards with features like golf privileges, airport lounge access, and dining discounts. They’re located in Dubai.

2. ADCB: Abu Dhabi Commercial Bank offers cards with features like TouchPoints rewards and no annual fee options. They’re based in Abu Dhabi.

3. Mashreq Bank: With cards offering Salaam rewards and Skywards miles, Mashreq Bank has a variety of options. They’re headquartered in Dubai.

4. RAKBANK: RAKBANK offers cards with cashback options and low interest rates. They’re based in Ras Al Khaimah.

5. First Abu Dhabi Bank (FAB): FAB offers cards with rewards programs and premium benefits. They’re located in Abu Dhabi.

6. Standard Chartered: Known for its cashback and rewards cards, Standard Chartered is located in Dubai.

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Please note that all information mentioned are estimations and for accurate information, we recommend conducting your own research and visiting the providers’ websites directly.

When choosing a card, consider your spending habits, payment reliability, and the card’s interest rates and benefits. A card with high annual fees might be worth it if it offers substantial rewards and benefits.

In conclusion, understanding your credit score and the types of cards available can help you make the right choice. With the right approach, you can turn a bad credit situation around or find a card that fits your lifestyle. The UAE credit card market has something for everyone.