How to Get a Credit Card despite Having a Bad Credit Score?

One of the most frequently asked questions among credit card applicants happens to be this — “Will I get a credit card even if I have a bad credit score or a monthly salary lower than AED 5,000?” 

The straight answer to this question is that you cannot get a credit card with a low credit score or if your monthly salary is below AED 5,000. It’s also important to understand that even if your monthly salary increases but your credit score remains poor or bad, you will still not get a credit card.

Coming to credit score, it is a 3-digit number that determines your creditworthiness as a borrower. So if you have a poor credit score, major banks and other lending organisations in the UAE will not see youas a reliable borrower and will end up rejecting your application. 

Which Options are Available in Such a Situation?

The best way possible to get a credit card in the UAE is to improve your credit score and bring it into the good credit score range, which is usually between 680 and 730. It is only then that you would get a good, reward-loaded credit card in the UAE. Furthermore, as we mentioned earlier, most banks in the UAE offer credit cards only to those who have a good aecb credit score.

Keep in mind that there are only a few banks that may provide alternative credit cards. Some of the alternatives available include -

Secured Credit Cards

Some banks in the UAE offer the option to apply for a secured credit card. When you apply for a secured credit card, you need to provide a certain amount as security — this amount gets refunded or adjusted later. 

These credit cards work the same as conventional credit cards. The only difference here is that you need to pay a cash deposit right away to secure a credit line. If you miss out on your credit card bill payments, the credit card issuer will keep your deposit.  Another pitfall of secured credit cards is that their interest rates are generally high. 

At the same time, secured credit cards present a great option to improve your credit score. So keep track of your transactions and make timely bill payments to improve your credit score — only then can you get the best credit cards at a good credit score. 

Tips to Improve Your Credit Score

So far, we have understood that it is crucial to build a good credit score to get the best credit cards. A good score certainly opens many doors in terms of credit card options. 

Before following some steps to improve your credit score, however, you should know that your credit score will not improve in a night. It requires a constant and disciplined lifestyle to improve your credit score. 

With that clear, here are a few tips that can help you improve your credit score so that you can get the best credit cards in UAE -

• Monitor your Credit Report - Start by getting a copy of your credit report from the AECB to see your credit score and your credit history, including outstanding payments and missed payments. If you spot any errors, report them immediately. Errors can harm your credit score without you knowing it.
• Pay on Time - Promptly paying your debts is crucial for your credit score. Set up automatic payments if it's challenging to pay bills on time. This ensures that your credit score won't be affected by late payments.
• Clear Credit Card Debt - If you can afford it, always pay your credit card bill in full. Only paying the minimum amount increases your debt and interest rates. Clearing your credit card bills, on the other hand, improves your credit score.
• Handle Multiple Cards Wisely - Managing multiple credit cards matters more than the number you own. Avoid applying for too many cards suddenly, as it can lead to multiple hard inquiries, which can bring down your score. 

Similarly, as their long history is valuable, closing old credit cards can hurt your score as it can reduce your overall age of credit. For this reason, you should only cancel cards that you don't use.

• Reduce Debt - Having lots of debt can hinder future loans or credit cards. Cut unnecessary expenses and manage loans to pay them off quickly.
• Be Patient - Improving your credit score takes time, just like it takes time to drop. Practise patience throughout the process, understanding that it won't happen overnight. 

Best Credit Cards in the UAE for a Good Credit Score

Once you improve your credit card, you can apply for any of the following best credit cards in the UAE -

To Conclude

You cannot get a credit card with a low credit score, as most banks prefer to approve credit cards only for those who have a high or a good credit score. With a few straightforward steps as discussed in the piece above, however, you can improve your credit score to get the best credit cards in the UAE. 

Once you have achieved a good credit score, you can always apply for the best credit cards on Paisabazaar.ae!

FAQ's About Credit Cards for 4000 Salary