Asks six UAE residents about the rewarding features of credit cards that most appeal to them
● Hina Navin
“I use a credit card to pay for regular online purchases and payments done outside the country. It mainly includes web browser payments for services such as Netflix or Elephant Drive cloud-based server. A credit card is a convenient way to pay for these services. They charge my credit card, and we can put it on monthly instalments.
“Moreover, since VAT is imposed on all purchases in the UAE, I also use my credit card for all general purchases, as most now need an odd figure payment. For instance, as a Dh48 item is now Dh50.4 and if you change a Dh100 note for that, you need to carry the change, so I use the card for convenience rather than credit, also earn points on all transactions.”
47, UK, Architect
“I use the card to purchase groceries, clothes, household items, gold and jewellery. The credit card on an average gives me a 50 additional days credit, and I also enjoy cashback benefits on card usage.
“The bonus is, I don’t have to carry a lot cash for shopping, which is cumbersome and risky.
“The card also allows me interestfree repayment over a few months on some purchases. Also, I enjoy discounts at restaurants and for paying school fees. Some of the tangible benefits such as cashback and merchant discounts result in sufficient gains on an annual basis.”
48, Indian, Housewife
“I like travelling, and buy tickets and holiday packages using my card. Then
I get the amount converted on instalments and that makes all my holiday expenses easier to afford with longer-term payback options.
“It also applies to school fees for my children. Instead of paying it as a lump-sum, I pay via credit card and extend this liability for a three- to six-month payment period with the minimal interest rate. Additionally, I accumulate points that I can redeem as cash purchases.”
35, Pakistani, Marketing manager for real estate development
The importance of these benefits varies from customer to customer depending on their behaviour, but a good travel card should be flexible or even customisable and cater to a wide range of individuals, he says.
“The set of features that appeal to one person may be very different from another depending on whether they travel for work or leisure or whether they are usually alone or with family.”
“Lounge access, for example, is most appealing to clients who like to arrive early and spend time eating or reading in the
“I use my credit card regularly for the supermarket, shopping and eating out. It is much more convenient than carrying cash and gets a bonus of two-for-one in some restaurants which is rewarding.
“Planning occasions such as holidays and special events, the added security of the credit-card payment system, the ability to pay online and the free travel insurance are a great bonus. On my last trip to Brazil, I paid for everything with my card, which makes me feel much safer than carrying cash all the time.”
Housewife airport before taking off. Hotel and taxi discounts appeal to those who mostly travel on holidays to foreign destinations.
Business travellers will likely have everything arranged by their company, and so hotel and taxi discounts may not be of interest,” he adds. 38, Brazilian,
“The credit card we use has many benefits such as free annual gym membership, a free round of golf each month, free limousine services on booked flights, free international lounge access and more.
“But to be eligible for the offers, you need to spend more than Dh10,000 per month.
“Therefore, we use our credit card to pay for utilities, groceries, general spending and our family monthly savings plans. Our savings plans cover most of the required spend amount, and we clear the outstanding credit card debt each month, so we don’t incur any interest. It works really well provided you’re strict with yourself and don’t overspend.”
45, Australian, Project Director
“My credit cards are valuable tools for earning rewards, travelling, online purchases, especially for my business, or unplanned expenses, as well as building credit. When purchasing more costly products, some of my cards even offer instalment plans.
“I travel quite often, and my credit cards are very beneficial then because some major car rental companies and hotels require a hold on a credit or debit card to reserve a car or book a room. Other rewards available on my card include cashback, discount purchases and even travel miles that I can redeem for things and an occasional treat.” 46, German, CEO of Digital marketing firm Another way to save on travel costs is to use an air miles credit card, which offers people the chance to receive free air tickets in return for making everyday purchases. From the air miles cards you have access to, the first thing to consider is which airline you fly with most often. Experts say there are two options here — either pick a frequent flyer programme with multiple airline partners so as not to narrow your choices, or sign up for one that is linked to the airline you use the most, which is likely to be Etihad if you live in Abu Dhabi, or Emirates if you are in Dubai. “Check the conversion rate of rewards earned on spend, i.e. how many miles you get per dirham spent. Or the other way around, which is how much you need to spend on a card to earn one mile,” Preeti H. Bhambri, the founder of Moneycamel.com told GN Focus in an earlier interview.
Using a multi-currency prepaid travel card can also offer benefits for users. Travellers can preload money in a chosen currency from their bank account on to the card or by paying cash, fixed at that day’s exchange rate and without the spreads that money changers and banks in the holiday destination that are likely to add up.
UAE Exchange’s prepaid travel card allows cardholders to choose from a bouquet of 16 available currencies on a single card while it enables smooth transitions from one currency to another.