Credit card eligibility in Dubai- Handy facts

If you are in Dubai and going to settle there, you may need many things to live there happily, and one of them could be the credit cards. You have to know about eligibility for credit cards in Dubai. It is known that only applying for credit cards is not enough. It is not the end of the process. It is the beginning of the procedure of obtaining a credit card. Even if you know about the eligibility for credit cards in Dubai, you should understand that now the application has to be approved. Approval of the credit card application is not as easy as it sounds. There are a complex process and procedure. The principal concern of the banks or the financial institution is to check whether the applicant is capable of paying back the loans on the credit card. The banks will ensure that the applicant is not going to default on payments. There are many modern techniques for assessment of eligibility all over the world. In the UAE, modern techniques are not followed to their full potential. Here, some traditional techniques are followed. It is in its nascent stage and it contributes to the delays in the approval process. In Dubai too, sophisticated methods are being adopted but it’s taking time to cover a wide area.

There are credit rating methods and they are done by the agencies in different parts of the world. These are the developed countries of the world. These are the agencies for credit rating and they do the assessment based on which eligibility for a credit card is decided. In the UAE, the method is different. The method of informal checks and other traditional methods like an enquiry into the salary paid, etc. are followed. The banks will check whether the employee has ever been blacklisted for being a defaulter on loans or any other financial matter. This is one of the ways that is followed in Dubai also.

Some banks use the blacklist method and set some ways or means so that the application is approved. It is also one of the ways to score the client. This method is a traditional one. There are techniques followed, some are old and some are modern. These are continually checked and altered depending on the need of the day.

There is a risk bureau in Dubai that banks use so that the cases of loan defaults are known or reported to them. The problem with this way is that it is no guarantee on the credit history of the client. The agencies of credit rating are so vital for the banking and financial sector who issue credit cards. Credit rating system or agency is not available in the UAE till today. Apart from that, it is known to the bankers that these credit rating systems depend on the large number of members who are willing to divulge the information needed for checking the credit history. They have to check on the veracity of the details provided to them by the applicants. There may be many ifs and buts. The bureau of credit in Dubai has nine institutions of finance and they are the partners. These are the top financial institutions of the UAE. The basic tenet of a credit rating agency is to provide the borrower’s capability to pay back the loans taken from the banks through the credit cards. The creditworthiness has to be ascertained. But, there is no system of scoring the borrowers.

There is a system of credit shield here. The function of it is to waive the loans taken by the borrowers in the even of their death or in case they have become permanently disabled. If the borrower dies or becomes disabled, he doesn’t have to pay back the loans taken.