How to Activate Credit Cards in UAE?

Credit cards are popular financial instruments in the UAE. With most of the leading banks and financial institutions offering credit cards in UAE, you can easily find one for your requirements.

With credit cards, you can conveniently make payments while enjoying numerous offers and rewards. The process of applying for a credit card is fairly hassle-free, and the same extends to credit card activation. The latter process is necessary if you want to start using your card and get the associated benefits.

Understanding Credit Cards in the UAE

Credit cards are simply plastic cards provided by banks and financial institutions that allow you, as a cardholder, to make transactions on credit. Most credit cards in the UAE come with multiple offers and benefits.

With each eligible purchase that you make using the card, reward points are credited to your account. These reward points can be used for travel bookings, dining, shopping, entertainment, and more. Several more benefits can be availed when your credit card gets activated.

However, you need to first activate your credit card. 

Credit Card Activation Process in the UAE

You can use multiple options to activate your credit card, including both online and offline means. Go through the following points to understand the process of activating your credit card -

Mobile App Banking

After installing the official app of the concerned bank or institution from where you got your credit card, follow the steps given below:

• Sign into your account using your bank account login credentials and navigate to the credit card section.
• Select the option to activate the credit card and tap on the card that needs to be activated.
• Next, provide your card details and enter the OTP sent to your registered mobile number.
• After that, you will be required to set a 4-digit PIN. Make sure you do not share your new PIN with anyone.
• Once done, re-type the PIN to confirm the action.
• You will receive a confirmation message once your card gets activated.

Online Banking

You can visit the official website of your credit card bank and perform the following steps:

• Under the cards section, opt for a credit card.
• Check for the option to activate the card.
• Click on it and enter the details required.
• Type in the OTP and set the 4-digit PIN.
• To confirm the PIN, re-enter it and continue further.
• A text message will be sent to your registered mobile number after your card has been activated.

SMS Banking

Another way of activating your credit card is to send an SMS to the bank. Note that each bank has a specific format that can be found on its website. Send the message in that format and wait for the card to get activated. Once done, you will receive a message on your registered mobile number.

Branch Visit

You can also take the traditional route and visit the nearest branch of your credit card provider. In this case, you will need to connect with a bank representative, who will guide you on how to complete the process of activating the credit card.

Note: Each bank has its own procedure for credit card activation. The steps given above are the standard ones - the actual ones may slightly vary as per your provider.

What are the Requirements to Apply for and Activate Your Credit Card?

As far as activation is concerned, you simply need to have a valid credit card from a recognised bank or provider. 

Although each bank in the UAE has different eligibility criteria for applying for a credit card, the major requirements are related to minimum age, minimum income, nationality, and more. You would also be required to provide documents related to your identity, salary, citizenship, and more such as your Emirates ID, salary certificates, etc.

It’s worth keeping in mind that apart from these documents, your bank may ask for additional documents if required.

What Happens if You Do Not Activate Your Credit Card?

If you fail to complete the credit card activation process within the assigned period, your bank may close your credit card. You may also be liable to pay the annual fee of the purchased credit card. Moreover, if your card is not activated till a certain time limit, you may have to apply for a new credit card.

Pros and Cons of Using a Credit Card

As we saw earlier, you can enjoy numerous features and benefits with credit cards. However, there are certain disadvantages as well. Let’s explore them both in detail below - 

Advantages

• Efficiency in Financial Management: Whether it's a utility bill payment or loan repayment, you can easily use your credit card for transactions. Moreover, with card providers setting specific monthly limits, you can easily manage your spending better. 
• Tracking Regular Expenses: Credit card statements are generated every month by banks or card providers. These statements mention all your expenses, outstanding and due balance for every month, and more. By assessing the credit card statement, you can easily set a budget for the next month.  
• Helps in Emergency Situations: One of the greatest advantages of having a credit card is that it supports you when there is an emergency. For instance, if there is a medical emergency that requires a hefty amount of money for treatment, you can use credit with a credit card and quickly make big transactions. 
• Builds a Strong Credit Score: Your credit score, ranging between 300 and 900, is considered an indicator of your creditworthiness in the UAE. It is among the key factors examined by the bank when you apply for a loan or a new credit card in UAE. By using a credit card properly, you can boost your credit score. 
• Attractive Offers and Rewards: All the leading banks in the UAE provide credit cards with amazing offers and discounts. With these offers, you can avail yourself of free access to airport lounges, cinemas, dining, shopping, and more.

Disadvantages

• Causes Debts: With unchecked spending, credit card dues can become large. If you are unable to settle them before the due date, you would be required to pay the interest amount as well. This, if continuing for a long time, can add up and lead to an enormous debt. 
• Cyber Crime Activities: With online crimes becoming common, your personal and financial details can be compromised. This can lead to fraudulent transactions on your credit card, which can cause significant losses. To safeguard yourself, you should follow general credit card safety tips like periodically changing PIN information, not using cards on unsecure websites, and more. 
• Overspending: Squandering on unnecessary expenses can become quite easy with credit cards, as you can easily complete the transaction and ‘pay later’. With this, your monthly budget can be easily distorted. 
• Hidden Costs: Unless you carefully read your credit card documents, you can easily overlook various fees related to your card. Generally, you can expect charges related to late payments, cash advance, over limit, and more. These fees can lead to a considerable increase in your overall credit card expenses. 

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