Last Updated on March 3, 2024
Credit cards can be helpful in getting out of debt while could also help you in digging yourself into debt. It could be difficult to pay back the debt on your credit card, especially if you have been making only minimum payments every month.
In such a situation you can avail the option of balance transfer on your card. A lot of banks in the UAE now offer balance transfer credit cards that allow you to transfer the balance on one card account to another at favorable rates.
Before discussing the credit cards offering balance transfer facility in the UAE, let us first discuss some tips regarding balance transfer.
Tips on Balance Transfer
Proper Research
Wondering how to select the best balance transfer credit cards UAE? It is advised that you always begin with research. There are a lot of amazing deals available in the UAE market these days. For example, HSBC and Standard Chartered are offering 0% balance transfer for 6 months.
Interest Rates
Without a doubt, the rate of interest is the most important and the most obvious consideration. However, this is not it. Not every card is created equal. Make sure you read the fine print carefully before you sign-up for the card. Compare the rate of interest after the promotion tenure ends with what you are being charged currently.
Fine Print
In order to complicate the situation, a lot of cards offer benefits like complimentary golf rounds and air miles. Do not get carried away by them. Read carefully the fine print of the credit card to know the terms and conditions on every feature and benefit offered including the balance transfer facility.
Balance Transfer Charges
Although it is very important to read the fine print, it is definitely not enough. You should also consider the various charges associated with the credit card including the fees and interest on balance transfer. Some cards offer 0 percent interest on balance transfer.
Apart from this, there are various other charges related to a credit card. Consider these charges before selecting your balance transfer credit cards.
Top Balance Transfer Cards in the UAE
Here are a few credit cards in the UAE that offer the facility of the balance transfer.
1. Commercial Bank of Dubai World MasterCard
This CBD Credit Card promised to open a world of special experiences and amazing privileges for you. It offers various benefits such as airport lounge access, Chip & Pin protection, CBD rewards, balance transfer, and many more. The balance transfer facility on this credit card is available in two options- revolving and regular balance transfer.
Revolving Balance Transfer includes processing charges up to three percent or 100 AED (whichever is higher).
Regular Balance Transfer includes an interest rate of up to 0.89 percent per month (flat) and a cancellation charge of two percent on the balance remaining.
Annual Fee: 750 AED (free for the first year)
Finance Charge: 3.45 percent per month
Minimum Income Required: 40,000 AED
2. Emirates NBD MasterCard Titanium Credit Card
With this Emirates NBD Credit Card, you can take advantage of a world of benefits and features. These include airport lounge access, golf privileges, reward points, various discounts, and much more. It can be classified amongst the best balance transfer credit cards UAE. There is a cancellation fee of three percent of the outstanding principal or 250 AED (whichever is higher) charged on balance transfers.
Annual Fee: 400 AED
Finance Charge: 3.45 percent per month
3. HSBC Advance Credit Card
This HSBC Credit Card offers Air Mile Rewards, free HSBC Entertainer App, a huge range of lifestyle and travel benefits, which include airport lounge access, hotel discounts and more. You can avail the facility of balance transfer on this card at a rate of interest (at reducing balance) as low as zero percent for the initial twelve months. Following is the balance transfer fee charged on this credit card.
Six-month plan– 1.50 percent of the amount of balance transfer or 100 AED (whichever is high)
Twelve-month plan- 3 percent of the amount of balance transfer or 100 AED (whichever is high)
24-month plan- 6 percent of the amount of balance transfer or 100 AED (whichever is high)
Annual Fee: Nil
Finance Charge: 2.99 percent per month
Minimum Income Required: 15,000 AED
4. Mashreq Platinum Elite Credit Card
The Mashreq Credit Card helps you in enjoying the elite advantage which includes a wide range of benefits that compliment your lifestyle needs, be it shopping, travel, dining, entertainment, sports, or adventure.
In addition to all the privileges, you can also enjoy peace of mind with this balance transfer credit card as it includes features like purchase protection and extended warranty. You can avail the balance transfer facility without any income documentation and at 0 percent interest.
There are fixed installments with a maximum period of 36 months. The Mashreq Bank allows you to transfer a maximum of 75 percent of the available credit limit.
Annual Fee: 650 AED
Finance Charge: 3.45 percent per month
5. RAK Bank Red Credit Card
You can pay less on all your shopping with the discounts on this RAK Bank Credit Card. This free-for-life credit card allows you to save time through the contactless technology. It lets you stay protected with features like travel accident insurance, purchase protection, credit shield and more.
It also lets you easily transfer money using RAKMoney Transfer. You can avail the balance transfer facility at zero percent interest for the initial 3 months on the balance outstanding. Thereafter, it charges an interest rate of 3.19 percent per month. You will also be charged a processing fee of 1.95 percent.
Annual Fee: Nil
Finance Charge: 3.45 percent per month
To Sum Up!
Do you want to pay back the debts on your credit card, however, you are unable to keep up with the high-interest payments? In this case, a balance transfer at 0 percent interest rate can help in reducing your burden significantly.
There are a variety of balance transfer credit cards in the UAE for you to choose from. Here we have listed a few of such credit cards. However, please note that this list is not ranked in any particular order. You should always go for the one that suits all your needs.