Best Credit Cards for Low Credit Score in the UAE

Having a low credit score in the UAE can be challenging, especially when it comes to getting approved for a credit card. However, there are options available tailored specifically for individuals with low or rebuilding credit scores. In this article, we’ll explore some of the best credit cards available in the UAE for those with less-than-perfect credit, how they can help you improve your credit score, and tips on managing your credit wisely.

Understanding Credit Scores in the UAE

Credit scores in the UAE are managed by the Al Etihad Credit Bureau (AECB). Your credit score is a three-digit number ranging from 300 to 900, with higher scores indicating better creditworthiness. A low credit score (below 580) can make it difficult to obtain credit cards, loans, or even favorable interest rates. However, some banks and financial institutions offer credit cards specifically designed for people with lower credit scores.

Top Credit Cards for Low Credit Scores

1. Mashreq Platinum Credit Card

   • Eligibility: Minimum monthly income of AED 7,000.
   • Features: While this card is designed for individuals with a stable income, it is also accessible to those with lower credit scores. It offers rewards such as cashback on dining, shopping, and travel.
   • Annual Fee: AED 700 (waived for the first year).
   • Interest Rate: 3.45% per month.
   • Benefits: Access to airport lounges, discounts on movie tickets, and more.

2. Emirates Islamic Cashback Plus Credit Card

   • Eligibility: Minimum monthly income of AED 5,000.
   • Features: This card offers cashback on everyday purchases like groceries, fuel, and utility bills. It’s a good option for those with low credit scores, as it allows you to earn rewards while rebuilding your credit.
   • Annual Fee: AED 524.
   • Interest Rate: 3.09% per month.
   • Benefits: Cashback on all spendings, free roadside assistance, and discounts on various services.

3. RAKBANK Red MasterCard Credit Card

   • Eligibility: Minimum monthly income of AED 5,000.
   • Features: This card is ideal for those with low credit scores, offering a range of rewards, including cashback on shopping, dining, and travel. It also includes purchase protection and extended warranties.
   • Annual Fee: AED 250 (waived for the first year).
   • Interest Rate: 3.19% per month.
   • Benefits: Cashback rewards, travel insurance, and more.

4. ADCB SimplyLife Credit Card

   • Eligibility: Minimum monthly income of AED 5,000.
   • Features: This card is tailored for individuals who are new to credit or have a low credit score. It offers straightforward cashback on all purchases and helps in building a positive credit history.
   • Annual Fee: AED 150.
   • Interest Rate: 3.45% per month.
   • Benefits: Easy cashback options, free life insurance, and balance transfer options.

How These Cards Can Improve Your Credit Score

Using credit cards responsibly is one of the most effective ways to improve your credit score over time. Here’s how the above-mentioned credit cards can help:

• Timely Payments: Making payments on time is crucial. It shows lenders that you are reliable, and over time, it can improve your credit score.
• Low Credit Utilization: Try to keep your credit utilization below 30%. This means if you have a credit limit of AED 10,000, you should aim to use no more than AED 3,000.
• Monitoring Your Credit Score: Regularly check your credit score through the AECB to track your progress and ensure there are no errors in your credit report.

Tips for Managing Credit Wisely

1. Set Up Payment Reminders: Late payments can significantly damage your credit score. Set up reminders or automatic payments to avoid missing due dates.
2. Avoid Unnecessary Credit Applications: Each time you apply for credit, it results in a hard inquiry on your credit report, which can temporarily lower your score. Only apply for credit when necessary.
3. Keep Old Accounts Open: The length of your credit history contributes to your credit score. If you have old credit cards, keep them open even if you’re not using them frequently.
4. Regularly Review Your Credit Report: Errors on your credit report can lower your score. Review your report regularly to catch and dispute any inaccuracies.

Conclusion

Having a low credit score in the UAE doesn't mean you’re out of options when it comes to credit cards. By choosing the right card, using it responsibly, and following best practices for credit management, you can gradually improve your credit score and enjoy the benefits of better financial health. Whether you choose a card for its cashback rewards, low annual fees, or other perks, the key is to make informed decisions and stay committed to improving your financial situation.