Balance transfer credit cards have been growing in importance in the UAE, with an increasing number of customers opting for the facility to better manage their debts. A balance transfer can be done when a customer wishes to move the money owed (balance) on their credit cards to any account they have with another credit card provider.
Most credit card providers encourage balance transfer in an effort to attract more customers, and customers also benefit from the facility as it offers them incentives like loyalty points, interest-free periods, low rates of interest or similar advantages. Customers who wish to transfer their balances to a new credit card account can have it done between five and seven working days. Upon applying for a balance transfer, the credit card company into which you have moved your balance either makes an online payment or issues a demand draft or cheque to your former credit card issuer and your debt is moved to the new account.
Things to consider before making a balance transfer
Before you can make a balance transfer, it is important to carefully read through the terms and conditions as most credit card providers, at least for the first few months, allow the transfer to be made at 0% APR. However, no grace or interest-free period will be offered on fresh purchase you make with the credit card. Even the rate of interest may be set at 0% for the first few months, but the processing fees applicable may be relatively high. The APR must also be verified by the borrower as come credit card providers offer lower APR in the first two months as part of their introductory promotions but may start charging a significantly high rate in the near future.
Many banks in the UAE offer customers the option to transfer their balances to another credit card account. Following are the best options if you are considering the same.
RAKBank Balance Transfer Credit Cards
RAKBank offer balance transfer at a 0% rate of interest for the first three months, and the processing fee is as low as 1.75%. The interest rate will rise to 2% after the first three months. Customers can make the most of the facility by simply calling on the bank’s toll free number (042130000), or apply for a balance transfer via the bank’s website. The benefits of getting a balance transfer with RAKBank include zero annual fees, up to 5% cashback for overseas spends and up to 3% cashback on local transactions.
Emirates Citibank Ultima Balance Transfer Credit Card
If you transfer your balance from your current credit card account to Citibank in the UAE, you will have no cancellation charges or processing fees. You can also derive benefits like discounts at restaurants, spas and shopping centres.
ADCB Balance Transfer Credit Cards
Customers who apply for a balance transfer to their ADCB credit card will be charged 0.99% on reducing balance for six months. The bank allows you to transfer 70% of your debt for another credit card.
Emirates NBD Balance Transfer Credit Cards
Emirates NBD is another great option for customers who are looking to transfer their credit card debt from their current bank. With low processing fees and simple and quick documentation, Emirates NBD also offers customers who use this facility a number of benefits by means of rewards.