Secured Credit Card vs Unsecured Credit Card: Quick Summary

In the UAE, the Central Bank’s credit-card rules set a minimum annual income of AED 60,000 for standard credit-card issuance. Applicants who do not meet this income threshold may need to pledge a deposit of at least AED 60,000, subject to the applicable rules and bank approval. Banks can also set their own eligibility criteria. 

Paisabazaar.ae suggests you compare both options based on the deposit required, annual fees, interest or profit rates, eligibility, and credit-building potential. Remember, a secured card can still charge fees and interest. Moreover, your deposit may remain locked until you close the card and settle your dues.

Disclaimer: This article is for general information only and does not constitute financial advice. Credit card eligibility, fees, rates and features vary by bank and may change. Review the specific card issuer’s latest Key Facts Statement and terms before applying.

Secured Credit Card vs Unsecured Credit Card: Quick Summary

The main difference between a secured and unsecured credit card is the security deposit. However, there are other differences in eligibility, credit limits, fees and benefits to consider.

What is a Secured Credit Card?

A secured credit card UAE is backed by a security deposit that the bank holds as collateral. In the UAE, this is typically available as a credit card against a fixed deposit.

For example, Wio Bank’s August 2026 Key Fact Statement says its deposit-backed card’s limit can be up to 80% of the deposit, subject to the bank’s internal criteria. A deposit of AED 10,000 could, thus, support a limit of up to AED 8,000 under that arrangement.

Your deposit may continue earning interest, depending on the product, but you generally cannot withdraw it while it is pledged. If you fail to repay your dues, the bank may use the deposit to settle the outstanding amount under the card's terms.

Pros and Cons of Secured Credit Cards UAE

What is an Unsecured Credit Card?

An unsecured credit card gives you access to a revolving credit limit without a security deposit. The bank assesses your income, employment details, existing liabilities, and credit history before deciding whether to approve your application and how much credit to offer.

For example, if a bank approves an unsecured card with a limit of AED 15,000, you can spend up to that limit, subject to your available credit. You do not have to pledge AED 15,000 in savings, although you still must repay what you spend.

Pros and Cons of Unsecured Credit Cards

Secured Card vs Unsecured Credit Card: Which is Better for Building Credit?

Both types can help you build a credit history in the UAE when the issuer reports your account activity to Al Etihad Credit Bureau (AECB). The important factors when comparing secured credit card vs unsecured credit card are your repayment behaviour, outstanding balances and overall borrowing commitments, not simply whether your card is secured or unsecured.

To build a stronger credit profile:

• Pay on time: Pay at least the required amount by the due date, preferably the full statement balance.
• Keep your balance manageable: Avoid using most of your available credit every month.
• Avoid unnecessary applications: Multiple credit applications and high existing commitments can affect a bank’s assessment. 
• Check your credit report: Review your AECB report for payment history, existing credit facilities, and inaccuracies.

A secured card is not a guaranteed shortcut to a higher credit score. Its benefit depends on the issuer’s reporting practices and how responsibly you manage the account.

Who Should Choose a Secured Credit Card vs Unsecured Credit Card?

A secured credit card may suit you if:

• You are new to borrowing in the UAE and want to start building a credit history
• You have savings available to pledge as a deposit
• You have difficulty qualifying for an unsecured card and a bank offers a suitable deposit-backed option

An unsecured credit card may suit you if:

• You meet the bank’s income and eligibility requirements
• You have an established repayment record
• You want a wider choice of rewards, travel benefits, or cashback
• You prefer not to lock up your savings as collateral

Before choosing either option, consider whether you can comfortably repay your card every month. If you need credit to cover recurring shortfalls in your budget, a credit card may not be the right solution.

How Do Secured and Unsecured Cards Affect Your UAE Credit Score?

Both types of cards help establish a credit history when the issuer reports the account to Al Etihad Credit Bureau (AECB). Your repayment behaviour and outstanding debt matter more than whether the card is secured or unsecured.

To build a stronger credit profile:

• Pay on time: Pay at least the required amount by the due date. Paying the full statement balance is generally better for avoiding interest or profit on eligible purchases.
• Keep balances manageable: Avoid maxing out on your available credit.
• Limit unnecessary applications: Multiple applications can decrease your credit score.
• Review your AECB report: Check your credit facilities and repayment history for errors.

As per the CBUAE’s rules, your total repayments across credit facilities must not be more than 50% of your salary. This is a regulatory repayment-capacity limit, not a recommendation to borrow up to that amount. Keep your borrowing comfortably within what you can afford.