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30 November 2023

UAE residents in dark about credit card rates

By Staff

Nearly two-thirds of credit card holders in the UAE are unaware of the interest rate attached to their credit card, according to a survey by finance comparison group, compareit4me.com.

The survey, which questioned participants across the UAE on a selection of personal financial products, found that 63 per cent of credit card holders do not know the interest rate attached to their plastic.

“Credit cards are big business in the UAE, with about 5.9 million debit and credit cards in circulation and spending on plastic rising year-on-year,” says Jon Richards, CEO of the compareit4me Group. “However, like any form of debt, credit cards need to be managed responsibly. To discover that nearly two thirds of credit card holders do not know the interest rate attached to them is alarming.”

The survey also found that 28 per cent of credit cardholders do not know how missing a credit card payment would impact their chances of getting a loan in the future.

“With the launch of Al Etihad Credit Bureau, every aspect of your financial history is tracked and can be analysed by banks,” says Richards.

“Missing monthly payments or bouncing cheques are some of the things logged on your credit report and can affect your future ability to access finance such as a loan, another credit card or even a mortgage. Again, I urge credit card users to swipe them responsibly – the alternative is excessive monthly payments that can quickly become unmanageable,” he said.