Urgently trying to get your hands on new low-credit-score credit cards in the UAE? Do you have a poor credit score, or is it the inability to maintain a healthy credit history? The thought crosses a lot of our minds: is there any way we can get ahold of a brand new no-credit-check credit card whilst staying in the UAE with no credit bureau check?
Well, although there aren’t many options to get a credit card without credit check, there is but one step: Use a stepwise approach one step at a time so that you can finally get the best credit card according to your specifications.
Let’s take a deep dive into whether it is possible for you to get a new no-credit-check check low-credit-score credit card issued in the UAE with no credit checks, some different alternatives and more, if not.
The short answer is no; you cannot simply start using a new credit card with no credit check involved in the UAE. The long answer is that when you start applying for any kind of credit product in the UAE, either a loan or a new low-credit-score credit card, the bank or the respective financial organisation instantly pulls your credit report. They call this the Hard Inquiry.
The AECB, short for the AI Etihad Credit Bureau, is the main organisation that prepares and handles credit reports for all UAE nationals. This so-called report has your entire credit history and credit score as well.
It is important to note that this hard inquiry process is a highly critical part of the application process. Banks and other such financial organisations religiously do this to estimate if you are really worthy of issuing a credit card or a bank account. After this, once checked and approved, a decision is made by the higher authorities. In consequence, a person cannot get a new credit card in Dubai, or anywhere in the United Arab Emirates for that matter, without a full credit check process.
Upon applying for a no-credit-check credit card, the reason why banks and other financial organisations immediately pull your entire credit report to :
Make a well-informed decision on approving your credit card application - the higher the credit score, the luckier you are on getting your application approved.
In case the application is moved ahead for approval, then assign the appropriate credit limit on the newly issued credit card.
As clarified above, while there is no feasible and legal way to apply for and get a credit card without a credit check (or hard inquiry), there surely are a few alternate ways :
Secured Credit Cards without credit check: These are the kind of cards where the customer has to pay a certain amount of security deposit against the card with the issuing bank.
These kinds of low-credit-score credit cards are the most ideal option for people who have an unfortunately low credit score or a bad credit history sometime in the past.
Once you get these cards, it is of utmost importance to ensure responsible and diligent behaviour towards your spending.
Most people consider getting this card as a second chance to improve their currently low and underqualified credit scores, as regular and on-time payments towards your spending actually improve a low credit score and help improve the future approval probability of the currently damaged credit history.
Become an Authorised User: There is another seldom-known yet very beneficial way of getting a new credit card without a credit check if you want a card to enhance your credit history and make transactions. Anyone can become an authorised user if someone you know, a family member or a friend, adds you to their current credit card running account. But the catch here is that even though you become a registered, authorised user of the bank or the respective financial organisation and even get a card of your own, you will not be the one responsible for all the payments towards the said card.
The obvious fact is that individuals with poor credit scores and significantly bad credit histories are the ones who end up here searching for ways to somehow get their hands on a credit card in the UAE without the expense of getting their poor scores hard inquired by the AECB. Hence, while it is certainly possible to consider some or the other temporary alternatives to getting a new credit card in the UAE, it is advised by financial experts and various financial bureaus to take the harder but more responsible route to fiscal freedom and end up with healthier credit records with strong credit scores.
To get there, you need to follow certain steps religiously :
Ensure timely payments on all your bills, be it loans or credit card bills.
Never apply for more than one loan or credit card at once; this is a very risky move.
Always maintain a healthy mix of various credit products, regardless of industry.
Is it feasible to get a newly issued credit card anywhere in the UAE that does not necessarily have to involve any kind of mandatory credit history or credit score checks?
The whole concept of procuring a credit card without having to undergo any regular credit checks might sound interesting, especially for those individuals who are relatively new to the country, have an unfortunately poor credit history, or are concerned about their credit score. However, the feasibility of securing a credit card without a credit check in the United Arab Emirates is almost impossible, and for surely a good reason.
Credit history and credit score background checks are a typically normal, everyday practice in the financial industry, designed to assess an individual’s creditworthiness and the ability to manage the issued debt responsibly without even a hint of malicious behavioural patterns. Let’s now take a deep dive into this topic in fine detail, understanding why these so-called credit checks are quintessential in today's world, the dire challenges of bypassing them, and potential alternatives for those seeking credit solutions.
Let us now take a deep dive into why the government of UAE, like most other countries' governments, has made it mandatory to conduct credit checks before issuing any credit card.
Financial institutions in the UAE, like those in most countries, rely solely on credit checks to make a calculated decision about the risk associated with lending money to any customer. A credit check provides insights into an individual’s financial behaviour, including their repayment history, outstanding or past debts that were delayed way beyond the repayment date, and overall credit utilisation patterns. This information helps banks decide whether or not an applicant is adept at repaying their existing credit card dues on time.
The financial sector in Abu Dhabi is always highly regulated to make sure there is stability and transparency. Central Bank regulations mandatorily need the banks and financial institutions to follow strict guidelines when issuing credit cards. These guidelines often include mandatory credit checks to ensure that lenders are not issuing any extra credit limit to people who have abused their credit history in the past or a bad credit score and who might struggle to repay their debts in a timely manner. bypassing this step would violate regulatory standards and expose financial organisations to certain legal and financial repercussions.
Credit checks also function as a protective measure for consumers. By assessing an individual’s financial health and history, banks can avoid issuing credit cards to customers who may already be overburdened with lots of existing debt. This aids in preventing individuals from falling into a loop of financial stress and ensures that credit is extended responsibly.
Getting a low-credit-score credit card or a regular credit card without a credit check has a lot of challenges that come with the process. Despite the fact that the options are very limited, there often comes a risk associated with it.
In the UAE, most mainstream banks and financial institutions require a credit check as a mandatory part of their regular application process. Whilst there surely may be a few niche or lesser-known providers that claim to provide credit cards without involving any kind of credit checks, these options are often associated with significant drawbacks, such as high fees, low credit limits, or unfavourable terms.
For those people who cannot meet the standard requirements to get their hands on a routine credit card, a plausible alternative is secured credit cards. These cards need a security deposit, though, which acts as an insurance amount and greatly reduces the risk for the bank. While a credit check may still be conducted nevertheless, this deposit usually makes it easier for customers with limited or poor credit history to qualify. However, this is not the same as obtaining a credit card without any credit check.
Some people confuse prepaid cards with credit cards. Prepaid cards do not involve any kind of credit check because they are not linked to a line of credit. Instead, the customers add funds to the card and spend only what they have deposited. Although prepaid cards offer convenience, they do not help build a strong credit history or provide the benefits associated with traditional credit cards, such as rewards programs or purchase protection.
Although it might sound appealing that there is an option where one can skip the credit checks, a lot of predatory practices are involved, and hence, it is not at all suggested.
One of the primary advantages of utilising a credit card is the wonderful chance to build or rebuild a credit history. In the UAE, having a strong credit score is quintessential for getting approvals for any sort of loan, home mortgage, and other financial products in the foreseeable future.
Financial products, or even services for that matter, that do not require a credit check are often associated with predatory practices, such as unbelievable and unreasonable interest rates, hidden, undetected fees that will only come up later in future statements; or any unfavourable terms. These products can trap individuals in a painfully endless cycle of a mountain of debt, making it highly difficult to achieve any financial stability. It is always advisable to choose transparent and reputable financial institutions, even if it means being a regular and law-abiding citizen and undergoing a credit history/credit score check.
Being responsible and accountable for credit card usage, assisted by a thorough credit check, assures long-term financial health. It encourages individuals to manage their finances wisely, avoid any exorbitant debt, and maintain a healthy credit score. Skipping, or worse, bypassing a credit check may provide short-term ease and convenience but will absolutely lead to long-term financial challenges.
In case you got rejected and the bank said they could not issue you a credit card without a credit check, do not lose hope. There are surely some alternatives, and we explained them below.
As mentioned above, secured credit cards are quite the practical option for most people with a bad credit history or poor credit scores. By depositing a security deposit, applicants can prove their commitment to responsible credit usage, making it easier to qualify for a card. Over time, consistent and responsible use of the said secured credit card can greatly help build a positive credit history.
Although most prepaid cards do not and cannot provide equal benefits as typical everyday credit cards, they can certainly be a useful everyday tool for handling expenses and surely for avoiding debt. They are especially more useful for people who want to limit their spending to available funds and avoid the risks associated with credit.
For those new to the UAE or with limited credit history, there are other ways to build credit. For example, taking out a small personal loan and repaying it on time or using a retail store credit card can help establish a good credit profile. Over the passing of time, this can improve your chances of getting swift and easy approval for a credit card.
Final Thoughts
To summarise, getting a fresh credit card in the UAE without involving a credit check is not as easy as most people would think. Credit checks are truly an essential part of every nation's financial system, which is designed to protect both the lenders and the borrowers. Although the idea of working your way around a credit check may seem appealing, it is important to recognise the troubles and repercussions that come immediately associated with an approach like that. Rather, people should start working on having a clean, positive credit history and obtaining it through responsible fiscal behaviour and studying alternatives like secured credit cards or prepaid cards. By doing the above, one can meet their financial ambitions while maintaining long-term stability and security.
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