# credit card advice



## Amal_ (Nov 17, 2010)

Hello all, 
I cancelled all my credit cards back home and want to start new ones here, I did a search on best buy and found out that RAK bank for instance provides a free credit card but they want me to sign a dummy cheque with the total amount of my credit limit..which I was..HAAAA!!! and the lady kept saying it's completely normal and don't worry..I'll even give u a receipt for the cheque..."what good is that for?!"..I feel I am being punk'd  but I really need a credit card and want to get the best offer and don't know where to go...consider that I don't need a high credit limit at all I just need it for internet purchases, plane tickets and hotel reservation since my debit card won't work in these cases.


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## Maz25 (Jul 6, 2008)

Due to the number of people who have taken on liabilities far greater than their pay cheque and then simply done a runner without settling their debts, the banks have over the last 2 years or so, taken a stronger stance on 'unsecured' credit. As such, it is actually quite common (and is done by all banks!) for your bank to ask for a blank cheque as security against all credit cards issued, which they will cash in the event that you fail to keep up with your repayments. You will also be asked for a blank cheque for any other sort of loans, such as car loans, mortgage, etc.

There is supposedly a law that is due to come out that will make this practice illegal. But until such time, I think that you would either have to do without the credit card or hand over the blank cheque! Even with the new law, if you do not pass the bank's credit check, then you would be in the exact same position, i.e. no credit card!


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## Amal_ (Nov 17, 2010)

thanks Maz....so I don't want such liability at all...I have been warned about such stuff before coming to UAE..so do you suggest any other solutions? I travel a lot and usually credit cards are the best practice during travelling plus I am not able to do net purchases at all...are there any debit cards that can work internationally and online??? I am really desperate but still I don't want to go to jail!!!!!


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## Maz25 (Jul 6, 2008)

Most of the major banks offer debit cards. It's a matter of shopping around and finding a bank account that offers the most benefits. They do work internationally but not online (well, at least mine does not work online!).

Provided that you do not go on a spending spree that you cannot afford and always pay off your balance, there should be no issues with handing over the blank cheque. The bank will return this to you or destroy it when you close your account. I handed over a blank cheque when I took out a car loan and this was destroyed when I settled the loan.

There is no reason for you to end up in jail if you manage your finances correctly and responsibly.


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## Jynxgirl (Nov 27, 2009)

As long as you do not over extend yourself and use the credit card in a responsible manner, you shouldnt have issues. If you were to lose your job, you will have to pay for the card right away. They will cash the checque and if you do not have the funds to cover it, then you will be blocked from leaving. If you just use it for traveling and are not going to be having a large balance, this will not be an issue, so to say.... 

Can you not obtain a credit card from your home country?  I avoid putting myself in these types of situations here.


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## Maz25 (Jul 6, 2008)

Just to add, on the basis that you will be using the credit card internationally, it would make even more sense for the bank to ask for a blank cheque. This is the only way for them to ensure that they get their money (yes, the cheque could bounce but deterrent is the new way forward here!) - once out of the country on a business trip, who's to say that you will come back. Your intention may be to come back but the bank unfortunately cannot be sure of that and they've been burnt pretty badly in the past, hence the more rigorous procedures that are now in place.

It's a 2-way mutual trust agreement. If you pay your balance, then the bank will have no reason to cash your security cheque.

Most international hotels do ask for a credit card when you check in, so it would be bothersome not to have one!


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## Amal_ (Nov 17, 2010)

Thanks Maz and Jynxgirl...Maz may I ask are u working in a bank?!


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## Maz25 (Jul 6, 2008)

Amal_ said:


> Thanks Maz and Jynxgirl...Maz may I ask are u working in a bank?!


No, I do not.


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## tigertmoore (Jun 2, 2008)

Amal: I have traveled extensivley around the planet with a debit card as my #1 card... my credit cards remain tucked away only in case of emergency. I have never had an instance where my debti card was not accepted at hotel, airline or internet purchase... as long as it has the visa/mc logo, then the vast majority of receivers have no problem. A few instances of car rental where the renter whacked me for 5-6-7 times the amount of rental as deposit but those have been the exception. 

I do agree with you on signing away blank cheques as the laws are quite stern... in fact I am utterly loathe to hand anyone anywhere a cheque and instead go to my bank and writ a cashiers/bank cheque and hand that over... it is as good as gold as it's already paid for but that may not be possible for everyone of course. 

Citibank International is my primary and another with HSBC and I've again never had my debit cards with either declined (well... maybe a few times when I was broke!). Wisely and carefully used, credit cards are fine but the temptation to buy on so-called credit is just too easy and why not spend exactly or less than what you have in your bank account? 

Plastic cards are of the devil my ex used to say and I'll say that in most instances, I agree. 

Check in with Citibank or HSBC and if you have the time to open an account with them and wait to get the cards, either one should suit your home and traveling needs just fine.


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## Amal_ (Nov 17, 2010)

Thanks a million...my debit with Mashreq was refused in Hotel bookings ahead of travelling, internet purchases, danata airline reservation although it has a master card thing...so I'll take your advice and investigate HSBC debit cards.


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## Mr Rossi (May 16, 2009)

A few of the banks (including RAK I think) offer pre-paid credit cards, instead of paying off your debt, you "charge" up your card prior with money in advance.


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## Maz25 (Jul 6, 2008)

Amal_ said:


> Thanks a million...my debit with Mashreq was refused in Hotel bookings ahead of travelling, internet purchases, danata airline reservation although it has a master card thing...so I'll take your advice and investigate HSBC debit cards.


The HSBC debit card does not work for internet purchases. They have a different card that you apply for if you want to make internet purchases (assuming that they are still issuing this card - I had one in 2008 but gave it up after a year since I never used it!)

According to their advert, it works internationally but mine did not when I tried to use it in France and aside from 'ma'am, all the cash machines in France are broken',  HSBC has not been able to provide a good reason (based on logic as opposed to stupidity!) as to why my card does not work! And to be honest, I stopped chasing for any answer - only so many stupid reasons and excuses that I am prepared to listen to!!


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## hellchap (Jan 12, 2011)

National Bank of Abu Dhabi
Their Electron Master Card (which is a debit card) works online. 
And i am using that.


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## hellchap (Jan 12, 2011)

Oh but unlike credit cards i doubt they might have any insurance against fraud.

I mean they might but i havent really checked it out. 

I use the debit card thru paypal and never by entering the card number itself on website.


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## tigertmoore (Jun 2, 2008)

hmhm... I am finding out some good infor here... I am now believing that opening an account in Dubai is quite different than having an account with a bank IN Dubai... I should say here that I opened my Citibank in Wales and my HSBC in St. Lucia... they are worldwide... but now I am believing that opening an account in Dubai may be local and once you leave or try and use your cards elsewhere will be subject to some strange rules... hmhm... don't know about this... but banks are like politicians... liars and thieves and crooks... 

Cheers on that happy note!

TM


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## hellchap (Jan 12, 2011)

Thieves - I totally agree .. 

They charge you for giving you s statement. They charge you for closing your account. They charge you for a letter about closing the account. They charge you for everything..

PHEW!! they dont charge you for depositing.. HEHE!!


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## Helios (Oct 22, 2008)

I have two DEBIT cards from Emirates Islamic Bank (linked with a current account) and Noor Bank (linked with a saving account) and I can use both of them online.


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## DUS (Feb 5, 2011)

So, but did anyone here ever (besides Maz) sign such a blanque cheque and handed it over?
Or does anyone have sufficient proof of bank abuse in such cases?

Cheers!


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## cobragb (Mar 15, 2010)

DUS said:


> So, but did anyone here ever (besides Maz) sign such a blanque cheque and handed it over?
> Or does anyone have sufficient proof of bank abuse in such cases?
> 
> Cheers!


I'm not sure what you are asking, but if you want a credit card in UAE, you have to give them a signed blank check.


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## rsinner (Feb 3, 2009)

cobragb said:


> I'm not sure what you are asking, but if you want a credit card in UAE, you have to give them a signed blank check.


Yes and no. ALL banks ask for such cheques these days, and I know people who have done that. Personally, I haven't done it - I bank with HSBC, I had an account with them for a few months before I applied for a credit card. They didn't ask me for a blank cheque (this was mid 2009).
However, their processes might have changed later because when a colleague applied for a CC, despite having an account with them he was asked for a blank cheque.

Also, I recently got a call from someone selling me a CC from Emirates NBD. He said that depending on the monthly salary, the blank cheque requirement might be waived. But I would double check that because sales people tell you anything to hook you.

Also, to clarify, it is not a blank cheque per se. it is an undated cheque in favor of the CC issuing bank, in which the amount equals the credit limit on the CC


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## w_man (Apr 16, 2010)

^^ Correct. I just recently applied for one and they initially asked me to sign a blank cheque. Of course I questioned it but then we agreed on my signing a cheque for the amount of the credit limit and not a blank cheque. 

I think this is common practice now so not a 'big' deal. As long as you maintain your finances and pay off the balance each month. I am also signing up for them to take 100% of the balance of the credit card from my current account each month so there is no owing balance. Fingers crossed for the bank not to screw me on this


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## DUS (Feb 5, 2011)

That's a good idea to enter the limit of the card, thanks for the input.
I intended to also sign up for the 100% coverage through my account at the same bank so it should work out like that.
I am also just using CCs as a back-up when I dont carry enough cash, and not to buy stuff I cant actually afford.

Cheers!


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## Amal_ (Nov 17, 2010)

Yes rsinner u r right ...I mentioned that earlier that she wants me to sign a cheque for my credit limit drawn to no account..

So I called everything off..as per most of ur advice...and my question now is altered to what 2 members already shared...safe banking practice experience with UAE cards...which debit or prepaid cards r u using freely online and outside of UAE?

Thanks all..this forum is really great..and may we all have a safe enjoyable stay here and better even a safe exit!!


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## Amal_ (Nov 17, 2010)

w_man said:


> ^^ Correct. I just recently applied for one and they initially asked me to sign a blank cheque. Of course I questioned it but then we agreed on my signing a cheque for the amount of the credit limit and not a blank cheque.
> 
> I think this is common practice now so not a 'big' deal. As long as you maintain your finances and pay off the balance each month. I am also signing up for them to take 100% of the balance of the credit card from my current account each month so there is no owing balance. Fingers crossed for the bank not to screw me on this


W-man ..I do intend to pay off monthly...I did cancel my home cards just for fear of accumulated processing fees didn't I! but signing a check on no account is a felony in my country and suppose I get sick or have to leave suddenly, I don't want such a silly problem festering behind me.


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## w_man (Apr 16, 2010)

Amal_ said:


> W-man ..I do intend to pay off monthly...I did cancel my home cards just for fear of accumulated processing fees didn't I! but signing a check on no account is a felony in my country and suppose I get sick or have to leave suddenly, I don't want such a silly problem festering behind me.


Fair enough - believe me, you are preaching to the choir. I don't believe in the practice and I think it puts me in an awkward position. Unfortunately - I can't maintain my home country credit cards for tax reasons and I travel quite a bit in the region for my job. Money isn't the issue but I need a credit card. No bank will issue me one until I sign such a cheque so 'it is what it is' logic applies. 

I am not worried as this is a company account and company credit card. There's more than enough money in the bank so each month the balance will be zero. If I get sick and leave the country - I shouldn't have any balance on the card.

My general understanding - after talking to a few different people - is that unless there is a banking error (which DOES happen) they will not simply cash your cheque for the hell of cashing your cheque and getting you in to trouble. All banks have processes (very strange at times) but the process require them to follow up with you even after a month or two of missing payments until they cash your cheque and then follow through with the police. 

GL with your decision.


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