Monthly rates on balances have gone up from 2.5-3 per cent in 2022 to 3.25-3.85 per cent.
“Banks may go slow with rate increases when it comes to credit cards (compared to other debt instruments),” said Anita. “That said, they could revisit their credit policy and may start reducing the credit limits offered to customers.
“The qualifying criteria for getting credit cards are also far more stringent. Nowadays, many get a rejection when they apply for credit cards.”
Emirates NBD said it evaluates credit card charges from time-to-time influenced by factors including market competitiveness. However, the bank spokesperson said they have not made any changes in the last 18 months since the US Federal Reserve rates started to go up.
Another banker based in Dubai emphasized the significance of settling outstanding credit card fees before the due date to avoid the hefty interest charges.
– Dhanusha Gokulan, Chief Reporter