Credit Cards by banks in UAE

The Central Bank of the UAE (CBUAE) strictly regulates credit cards under Regulation No. 29/2011 (Article 5) and the Retail Payment Services and Card Schemes (RPSCS) Regulation. These rules ensure financial stability and protect consumers from over-indebtedness. 

1. Eligibility & Income Requirements

• Minimum Income: You must earn a minimum gross salary of AED 60,000 per annum to be eligible for a standard credit card.

• Pledged Deposit Option: If you earn less, you can still get a credit card by pledging a deposit of at least AED 60,000 with the bank. The total credit limit cannot exceed \(50\%\) of this deposit. 

2. Debt Burden & Repayment Limits

• Maximum Limit: Total monthly repayments (including credit card minimum payments, personal loans, car loans, and any other regular debt) cannot exceed \(50\%\) of your gross salary or regular income.

• Minimum Payments: Banks are required to set a minimum repayment amount. If you fail to clear your balance by the due date, banks apply interest to the daily average outstanding balance. 

3. Interest, Fees, and Charges

• Interest-Free Grace Period: No interest is levied on retail purchases if you pay the new balance in full by the payment due date.

• Cash Advance Fees: Interest and finance charges on cash advances are applied from the transaction date until the final repayment.

• Capped Fees: Banks cannot charge fees, commissions, or fines that go beyond the official limits prescribed in the Central Bank's fee schedule. 

4. Card Issuance and Security

• Prior Consent: Banks cannot issue a credit card or upgrade your existing limit without obtaining your prior written or electronic concurrence (such as via SMS or email).

• Debt Collection: If a cardholder falls behind on payments, banks must follow a progressive provisioning scale (e.g., classifying balances into arrears after 90 days). Continued failure to pay can lead to card suspension, legal actions, and potential travel bans.