Balance Transfer Credit Cards in UAE

In today's world of modern finances, where bills pile up like endless tasks and loan costs feel like an undue burden, finding balance seems like a dream. However, you need not be concerned about it because of the existence of the Balance Transfer Credit Card. A Balance Transfer Credit Card in the UAE, much like elsewhere, allows you to transfer the outstanding balance from one credit card to another. This feature is often utilized by individuals to consolidate their debts or to take advantage of lower interest rates offered by the new credit card issuer. If you're in the United Arab Emirates (UAE) and looking for monetary balance, then this blog is specially for you.

What is a Balance Transfer Credit Card in the UAE?

Balance transfer credit cards are financial instruments designed to help individuals manage their existing credit card debt more effectively. Balance transfer is similar to Buyout Loans basically means shifting the outstanding credit card balance from one bank to another. 

This normally happens when your credit card interest is too high leaving you unfit to appropriately make regularly scheduled installments. Usually, because of high interest rates, you get to pay just monthly interest and the amount due continues to increase; this is the point at which a balance credit card in the UAE comes into the picture.

Benefits of Balance Transfer Credit Cards

Mentioned below are the several benefits of choosing the Balance Transfer Credit Cards: 

Lower Interest Rates

One of the essential benefits of a balance transfer credit card in the UAE is to get a loan at a lower interest rate as compared to your current cards. This implies you can get a good deal on interest installments, permitting you to pay off your debt more efficiently.

Consolidation of Debt

Keeping track of multiple credit card debts can be confusing and overwhelming. Balance transfer credit cards simplify the process by consolidating all your debts into one account, making it easier to keep track of your payments and stay organized.

Introductory Offers

Many balance transfer credit cards in the UAE accompany initial offers, for example, a 0% financing cost for a predefined period. This promotional period allows you to focus on paying off your debt without accruing additional interest, providing a valuable opportunity to make significant progress towards financial freedom.

Improved Credit Score

Balance transfer credit cards can help raise your credit score over time if you manage your debt well and pay it off on time. A higher credit score opens doors to better financial opportunities, such as lower interest rates on loans and access to premium credit card benefits.

How to Choose the Right Balance Transfer Credit Card?

Now that you have understood the advantages of a balance transfer credit card, we will explore the most common way of choosing the right balance transfer credit card for you. Here are a few factors which you should consider:

Interest Rate

Analyze the interest rates offered by various balance transfer credit cards and pick the one that gives the best rate. After the introductory period has ended, keep in mind to take into account both the promotional period and the ongoing rate.

Fees

Be aware of any charges related with balance transfer, for example, transfer expenses or yearly expenses. While some cards have promotional fees waived or reduced, others may have higher initial costs that outweigh any potential savings.

Promotional Period

Pay close attention to the duration of the promotional period offering 0% interest. Ideally, you want a card that provides a sufficient amount of time to pay off your debt without incurring additional interest charges.

Best Balance Transfer Credit Cards in The UAE

Mentioned below are some of the best Balance Transfer Credit Cards available in the UAE:

Mashreq Bank Platinum Elite Credit Card

Mashreq Bank Platinum Elite Credit Card is a premium offering designed to cater to the discerning needs of affluent customers. It comes with a plethora of benefits and features tailored to provide an enhanced banking experience. The card comes with advanced security features to ensure the safety of transactions, along with convenient payment options and access to online banking services.

Minimum Salary: AED 7,000

Rate: 3.45%

Top Reasons to Choose:

• Earn Salaam points on all spends

• Travel benefits

• AED 1000 cashback as joining bonus

• Airport Lounge Access

• Airport Pick up or Drop

• Balance Transfer

ADIB Value Credit Card

The ADIB Value Credit Card is a versatile financial tool designed to cater to the everyday needs of its users. The card typically comes with a competitive annual fee, making it an accessible option for a wide range of customers.

Minimum Salary: AED 8,000

Rate: 3.09%

Top Reasons to Choose:

• Free for life

• Dining discounts in UAE

• Golf offers

• Cinema Tickets

• Balance Transfer

First Abu Dhabi Bank Etihad Guest Platinum Credit Card

The First Abu Dhabi Bank (FAB) Etihad Guest Platinum Credit Card is a premium co-branded credit card tailored for frequent travelers and loyal customers of Etihad Airways. As a co-branded card with Etihad Airways, the Platinum Credit Card allows users to earn Etihad Guest Miles for every dirham spent on purchases. These miles can be redeemed for flights, upgrades, hotel stays, and other travel-related rewards with Etihad Airways and its partners.

Minimum Salary: AED 8,000

Rate: 3.5%

Top Reasons to Choose:

• 10,000 welcome Etihad Bonus Guest Miles

• 25% Etihad Guest Miles discount voucher

• Miles Accelerator and Double Miles on recurring trans.

• Airport Transfers Facility

• Free Cinema Tickets

• Balance Transfer

CBD Super Saver Credit Card

The CBD Super Saver Credit Card is a financial product offered by Commercial Bank of Dubai (CBD), tailored to provide customers with a range of benefits and savings opportunities. One of the main highlights of the CBD Super Saver Credit Card is its cashback rewards program. Cardholders can earn cashback on various spending categories such as groceries, dining, fuel, utility bill payments, and more.

Minimum Salary: AED 8,000

Rate: 3.69%

Top Reasons to Choose:

• Earn up to 10% cashback on specific categories

• Complimentary global airport lounge access with Lounge Key

• Upto 5 free supplementary credit cards

• Balance Transfer

Tips for Maximizing the Benefits of Balance Transfer Credit Cards

Mentioned below are the few tips which one should keep in mind to maximize his/her benefit on balance transfer credit card:

• Make a Reimbursement Plan: Before transferring your balances, develop a clear repayment plan outlining how you will pay off the debt within the promotional period. Calculate the monthly payments required to eliminate the balance before the introductory offer expires.

• Avoid New Purchases: Avoid making additional purchases with your new balance transfer credit card, despite the urge. During the promotional period, concentrate solely on paying off your existing debt to maximize interest savings.

• Monitor Due Dates: Remain watchful about due dates for installments to abstain from missing any deadline and causing late expenses or punishments. Set up reminders or automatic payments to ensure timely repayment.

Conclusion

In the view of personal finance, balance transfer credit cards offer the benefit of savings and simplicity. By using these financial instruments wisely, individuals in the UAE can navigate their way towards debt-free living and financial stability. Picking the best balance transfer credit card requires cautious thought of your ways of managing money, monetary objectives, and way of life. My banker helps you to monitor your spending pattern as well your credit score, which further helps you to choose the best balance transfer credit card for yourself. Contact us today to avail our premium services.