5 Common Mistakes to Avoid When Choosing a Credit Card in the UAE

Credit cards in the UAE offer a world of convenience and valuable benefits — from cashback and travel rewards to shopping discounts and exclusive services. Yet, despite countless offers and promotions, many residents end up choosing cards that don’t truly suit their needs.

The result? Unused rewards, high fees, or even rejections that damage credit scores.

Understanding the most common credit card mistakes helps ensure the right choice — one that delivers real value without unexpected costs. Here are five mistakes to avoid when selecting a credit card in the UAE.

Mistake #1: Focusing Only on Welcome Offers

Banks in the UAE frequently promote generous welcome bonuses, such as:

• Free annual fees for the first year
• Thousands of bonus air miles
• Cashback on first transactions
• Shopping vouchers worth AED 500 or more

While welcome offers can be attractive, they often distract from the card’s long-term costs and benefits.

For example, a credit card might waive the annual fee for the first year but charge AED 750 from the second year onward. Or a card offering bonus miles may have high spending requirements that are unrealistic for many users.

How to Avoid It

Look beyond the initial promotion and examine:

• Ongoing annual fees
• Interest rates (especially if carrying a balance)
• Everyday reward rates
• Any minimum spend required to maintain benefits

A great credit card remains valuable long after the welcome offer has expired.

Mistake #2: Ignoring Minimum Income Requirements

Every credit card in the UAE has a minimum salary requirement, often ranging from AED 5,000 to over AED 30,000 per month for premium cards.

Applying for a card without meeting the income threshold almost always leads to rejection — and each rejection can hurt the applicant’s Al Etihad Credit Bureau (AECB) credit score.

How to Avoid It

• Always check the bank’s income requirement before applying.
• Use tools like Test My Card UAE to filter cards based on personal salary to avoid wasting applications.
• If income is below AED 5,000, consider cards specifically designed for low-income applicants.

Mistake #3: Overlooking the AECB Credit Score

In the UAE, the AECB credit score plays a crucial role in credit card approvals. Even if someone meets the income requirement, a low credit score can:

• Lead to rejection
• Result in lower credit limits
• Cause higher interest rates

Multiple credit card applications within a short time can lower the score further, creating a vicious cycle of rejections.

How to Avoid It

• Check the AECB credit report before applying.
• Limit applications to cards that match income level and credit score.
• Use comparison platforms like Test My Card UAE that integrate AECB score checks to recommend cards likely to approve the application.

Mistake #4: Choosing the Wrong Rewards Structure

UAE banks offer credit cards with various rewards:

• Cashback on groceries, petrol, and bills
• Air miles for frequent travellers
• Shopping discounts for specific retail stores
• Entertainment perks like free cinema tickets

Yet, many residents choose cards with rewards they rarely use. For instance, selecting an air miles card despite seldom travelling means missing out on cashback or retail discounts that would be more valuable for everyday life.

How to Avoid It

Analyse monthly spending patterns.

For example:

• Residents spending heavily on groceries and petrol should look for cashback cards with higher percentages in those categories.
• Frequent travellers benefit more from air miles and travel insurance perks.
• Budget-conscious individuals may prefer no-annual-fee cards with basic cashback.

Platforms like Test My Card UAE help match spending habits with the right reward structures.

Mistake #5: Not Checking Hidden Fees

Beyond annual fees, credit cards in the UAE often include other charges:

• Foreign transaction fees (often 2.5-3.5%)
• Cash advance fees
• Late payment charges
• Over-limit fees
• Card replacement fees

These fees can add up quickly and offset any rewards earned.

How to Avoid It

Review the credit card’s full schedule of fees before applying.

Check for:

• Foreign exchange markups for international purchases
• Penalties for missed payments
• Terms for cash withdrawals

Being aware of these charges helps avoid surprises and ensures the card truly saves money.

Example Scenarios

Consider two examples:

Example 1:

A resident earning AED 8,000 monthly chooses an air miles card requiring a minimum spend of AED 15,000 per month to earn significant miles. They travel only once a year and rarely use lounges. The result? They pay an AED 600 annual fee but hardly gain value from the miles program.

Better Option: A cashback card offering 5% cashback on groceries and petrol would save them AED 150-200 monthly, adding up to over AED 2,000 annually — without unused benefits.

Example 2:

A new resident applies for three premium cards in one month, hoping to secure high limits and travel perks. All applications are rejected because their AECB credit score hasn’t been established yet. Each rejection lowers their credit score further, making future approvals even harder.

Better Option: They could start with a no-annual-fee credit card for lower-income brackets, build a positive credit history, and upgrade to premium cards later.

How Test My Card UAE Helps Avoid Mistakes

Test My Card UAE is designed to help residents avoid these common pitfalls. The platform:

• Filters credit cards by salary and spending patterns
• Uses AECB credit score information to reduce rejections
• Provides transparent details on fees and conditions
• Updates regularly with the latest offers from UAE banks

Instead of risking poor choices, users can quickly identify cards that match their lifestyle and financial health.

Who Should Be Careful When Choosing a Card?

• New residents unfamiliar with the UAE banking system
• Residents with income below AED 5,000
• Frequent travellers unsure whether air miles offer enough value
• Budget-conscious individuals wanting to avoid hidden costs
• Anyone seeking to protect their credit score

Final Thoughts

Choosing a credit card in the UAE shouldn’t be rushed. While attractive offers and rewards might grab attention, they don’t always translate into long-term value. By avoiding these five common mistakes, residents can ensure their credit card delivers genuine benefits without financial stress.

Tools like Test My Card UAE make the process easier, helping users pick cards that truly fit their lifestyle, budget, and credit health.