Cashback vs. Air Miles: Which UAE Credit Card Is Right for You?

Credit cards in the UAE offer an impressive array of benefits. Two of the most popular features residents look for are cashback rewards and air miles. Each offers distinct advantages, but they work differently and suit different spending habits.

Understanding how these reward systems operate helps ensure every dirham spent earns maximum value.

How Cashback Credit Cards Work

Cashback credit cards are straightforward. A percentage of spending is returned as cash, either credited to the card account or deducted from future statements.

For instance, a card might offer:

• 5% cashback on groceries
• 2% on fuel
• 1% on other purchases

This is a practical option for anyone focused on immediate savings rather than long-term travel rewards.

Benefits of Cashback Cards in the UAE

• Simple and immediate value – No complex conversion rates or blackout dates.
• Good for daily expenses – Ideal for groceries, petrol, and bill payments.
• Flexibility – Cashback can offset card bills, reducing monthly expenses.

Considerations for Cashback Cards

• Some cards require a minimum monthly spend to unlock higher cashback rates.
• Cashback percentages might vary depending on the spending category.
• Cards with higher cashback sometimes charge annual fees, though no-fee options exist.

How Air Miles Credit Cards Work

Air miles credit cards allow users to accumulate miles for every dirham spent. These miles can be redeemed for flights, seat upgrades, hotel stays, or other travel-related benefits.

In the UAE, popular programs include:

• Emirates Skywards Miles
• Etihad Guest Miles

Benefits of Air Miles Cards in the UAE

• Ideal for frequent travellers– Significant savings on flights and travel upgrades.
• Access to travel perks – Free airport lounge entry, priority boarding, extra baggage allowance.
• Luxury rewards – Business class tickets or hotel stays become more attainable.

Considerations for Air Miles Cards

• Often carry higher annual fees, sometimes exceeding AED 1,000.
• Redemption can be complex, with blackout dates or limited seat availability.
• Miles may expire if unused within a set timeframe

Deciding Between Cashback and Air Miles

Choosing between cashback and air miles comes down to lifestyle and spending patterns.

When Cashback is Better

• Spending is mostly local (groceries, fuel, utilities).
• Preference for immediate, tangible savings.
• Travel is rare or only occasional.
• Desire for simple, no-hassle rewards.

When Air Miles are Better

• Frequent international or regional travel.
• Preference for luxury travel experiences.
• Ability to spend enough monthly to justify annual fees.
• Comfort with managing miles programs and redemption rules.

Example Scenarios

Consider two examples to illustrate the decision:

• Resident A spends around AED 5,000 monthly, primarily on groceries, dining, and school fees. Travel occurs only once a year. A cashback card might save AED 150-250 monthly—adding up to over AED 1,500 annually.
• Resident B travels for work every month, with significant business expenses charged to the card. Earning miles can easily cover premium airline seats or upgrades worth thousands of dirhams annually.

Role of AECB Credit Score

Eligibility for premium cards often depends on the Al Etihad Credit Bureau (AECB) score. Higher scores increase chances of approval and access to higher credit limits or lower interest rates. Checking this score before applying ensures better planning and avoids unnecessary rejections.

Using TestMyCard.ae for the Right Choice

Searching manually for the right credit card can be time-consuming. Platforms like TestMyCard.ae simplify the process by:

• Allowing users to input salary, spending categories, and travel habits.
• Matching users with cards offering cashback or miles based on real data.
• Helping identify cards likely to be approved according to AECB scores.

Final Thoughts

Both cashback and air miles cards can offer excellent value in the UAE, depending on how individuals spend and what rewards they value most.

Understanding personal habits and financial goals makes it easier to choose the card that turns everyday spending into meaningful benefits.

The features, benefits and offers mentioned in the article are applicable as on the day of publication of this blog and is subject to change without notice. The contents herein are also subject to other product specific terms and conditions and any third party terms and conditions, as applicable. Please refer our website www.testmycard.com for latest updates.