Survey shows vast majority prioritise clearing credit card bills each month
The vast majority of UAE residents ensure that they clear their credit card bills at the beginning of each month, debunking the common perception that they are prone to accruing large amounts of credit card debt.
A yallacompare survey, carried out in September, polled over 270 UAE residents on their attitudes towards credit cards and found that 70 percent view their credit card bill as a top priority every month.
Respondents in this group said that they ensure any outstanding credit card debt is cleared ahead of other bills when they receive their salaries.
The results show a marked improvement in UAE residents’ attitudes towards credit card debt. A 2013 study by yallacompare, then under the brand name compareit4me, found that one in five UAE residents had taken out a loan in order to clear soaring credit card debts.
It also found that 42 percent ambled on with credit card debts by only making the minimum payment each month.
“It’s highly encouraging that our most recent survey suggests that UAE residents are reaping the benefits of credit cards while still being responsible with their repayments,” said Jon Richards, CEO of yallacompare.
According to yallacompare’s recent survey, fewer than 5 percent of UAE residents make only the minimum payment on their credit cards every month. The remainder of respondents said that they regularly pay more than the minimum required, but tend to have a little outstanding credit card debt every month.
“With the advent of credit scoring from Al Etihad Credit Bureau, and the uptake of credit checks by local financial institutions, the UAE has become a model country in the region for sensible lending,” said Richards.
UAE consumers said they still indicated a strong preference for cards that offered them additional benefits such as air miles, cashback and entertainment offers.
The survey also revealed that UAE residents have a tendency to opt for local banks when it comes to their credit cards.For all the latest banking and finance news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.