FAB Low-Rate Credit Card Review

FAB Low-Rate Credit Card Review
FAB Low-Rate Credit Card

The FAB Low-Rate Credit Card by First Abu Dhabi Bank is designed to offer users competitive interest rates and various benefits that cater to those looking to manage their finances efficiently. Here’s a detailed review based on the latest information from multiple sources.

Key Features and Benefits

  1. Low Interest Rates:
    • UAE Citizens: Enjoy a low interest rate of just 1.5% per month.
    • Expatriates: Get a slightly higher interest rate of 1.99% per month.
  2. Balance Transfer Offers:
    • UAE Nationals: Get 0% interest on balance transfers for up to 18 months.
    • Expatriates: Enjoy 12 months of 0% interest on balance transfers (fees apply).
  3. Cashback and Welcome Offers:
    • New cardholders can get AED 800 cashback with the FAB Low-Rate Credit Card upon meeting certain conditions.
  4. Purchase Protection and Extended Warranty:
    • The card provides purchase protection and an extended warranty of 12 months beyond the manufacturer or retail warranty through Visa, adding an extra layer of security for your purchases.
  5. Credit Shield:
    • Opt for Credit Shield benefits to ensure your outstanding balance is paid off if you cannot meet your credit card payments due to unforeseen circumstances.
  6. FAB Mobile App:
    • Manage your card, payments, and more through the FAB Mobile app, offering convenience and control over your finances.
  7. SMS Alerts:
    • Receive SMS alerts for all your credit card transactions, helping you stay on top of your spending and account activity.

Additional Perks

  1. Lifestyle Benefits:
    • The card includes various lifestyle benefits such as access to exclusive offers and discounts at partner merchants.
  2. Protection Benefits:
    • Includes Wallet Shield which covers fraudulent transactions on lost or stolen credit cards, stolen cash, and stolen identification papers or keys.
  3. Extended Payment Plans:
    • The card offers 0% Easy Payment Plans (EPP) for various purchases, allowing you to spread the cost of larger expenses without incurring interest.

Comparisons with Other FAB Cards

  • The FAB Cashback Credit Card offers higher cashback rates but comes with a higher interest rate compared to the Low-Rate Credit Card.
  • The FAB Standard Credit Card is free for life and offers up to 2.5 FAB Rewards for every AED 1 spent, but it does not feature the low-interest rates provided by the Low-Rate Credit Card.

Pros and Cons of the FAB Low-Rate Credit Card

Pros

  1. Low Interest Rates: Offers some of the lowest interest rates in the market, with UAE Nationals enjoying rates as low as 1.5% per month and expatriates starting at 1.99% per month. This is advantageous for those who carry a balance and want to minimize interest costs.
  1. Balance Transfer Offers: 0% interest on balance transfers for up to 18 months for UAE Nationals and 12 months for expatriates, making it an excellent option for consolidating and paying off existing credit card debt.
  1. Cashback and Welcome Offers: New cardholders can receive AED 500 cashback, providing immediate value upon signing up and meeting certain spending criteria.
  2. Purchase Protection and Extended Warranty: Includes purchase protection and an extended warranty of 12 months beyond the manufacturer or retail warranty through Visa, offering additional security for your purchases.
  3. Credit Shield: Provides peace of mind with Credit Shield benefits that cover outstanding balances in case of unforeseen circumstances that prevent you from making payments.
  4. Convenient Management via FAB Mobile App: The FAB Mobile app allows easy management of the card, payments, and other financial activities, adding to user convenience.
  5. SMS Alerts: Offers SMS alerts for all transactions, helping users keep track of their spending and detect any unauthorized activity promptly.
  6. Extended Payment Plans: 0% Easy Payment Plans (EPP) for various purchases, which help spread the cost of larger expenses without incurring interest.

Cons

  1. Balance Transfer Fees: Although the card offers 0% interest on balance transfers, there are fees associated with these transfers, which might add to the cost for expatriates.
  2. Limited High Cashback Categories: While the card offers good overall benefits, it lacks high cashback rates on specific categories compared to some other cards which might provide higher returns on supermarket, fuel, or utility bill payments.
  3. Eligibility Criteria: The minimum salary of AED 10,000 requirement for the card might exclude lower-income individuals from accessing its benefits.
  4. Annual Fees: The card has an annual fee of 300AED that needs to be considered, especially if the benefits do not outweigh the costs for some users.
  5. Lifestyle Benefits Might Be Limited: While the card includes some lifestyle benefits, they may not be as extensive or appealing compared to other premium credit cards that offer more luxurious perks such as comprehensive travel insurance, higher rewards on specific spend categories, or more extensive airport lounge access.

Point-by-Point Comparison of FAB Low-Rate Credit Card with Similar Rival Cards

Interest Rates

  • FAB Low-Rate Credit Card: Offers interest rates as low as 1.5% per month for UAE Nationals and 1.99% per month for expatriates. This is among the lowest available, making it highly attractive for those who carry a balance and wish to minimize interest costs.
  • ADCB SimplyLife Credit Card: This card has an interest rate of 3.25% per month, which is higher compared to the FAB Low-Rate Credit Card.
  • Emirates NBD Visa Platinum Credit Card: With an interest rate of 3.09% per month, this card is still higher than the FAB Low-Rate Credit Card.
  • Mashreq Platinum Elite Credit Card: The interest rate for this card stands at 3.85% per month, which is significantly higher than what FAB offers.

Balance Transfer Offers

  • FAB Low-Rate Credit Card: Provides 0% interest on balance transfers for up to 18 months for UAE Nationals and up to 12 months for expatriates, though fees apply for expatriates. This extended period is beneficial for those looking to consolidate and pay off existing credit card debt without accruing interest.
  • ADCB SimplyLife Credit Card: Offers 0% interest on balance transfers for up to 12 months, with applicable fees. This is comparable to the expatriate offer from FAB but does not match the extended period offered to UAE Nationals by FAB.
  • Emirates NBD Visa Platinum Credit Card: Provides 0% interest on balance transfers for up to 6 months, which is less than both the ADCB and FAB offers.
  • Mashreq Platinum Elite Credit Card: As with ADCB, this card offers 0% interest for 12 months after balance transfers (but their are fees).

Cashback and Welcome Offers

  • FAB Low-Rate Credit Card: New cardholders can receive AED 800 cashback, adding immediate value upon signing up and meeting certain spending criteria.
  • ADCB SimplyLife Credit Card: Offers AED 500 cashback for new cardholders meeting specific spending criteria, which is less than FAB’s offer.
  • Emirates NBD Visa Platinum Credit Card: Does not have a specific cashback offer mentioned but has reward points.
  • Mashreq Platinum Elite Credit Card: AED 1,500 Welcome Bonus on the card when you spend AED 7,500 or more in the first 2 months post card issuance.

Purchase Protection and Extended Warranty

  • FAB Low-Rate Credit Card: Offers purchase protection and an extended warranty of 12 months beyond the manufacturer or retail warranty, adding an extra layer of security for purchases.
  • ADCB SimplyLife Credit Card: Includes purchase protection and an extended warranty of up to 24 months, offering a longer period than FAB.
  • Emirates NBD Visa Platinum Credit Card: Similar to ADCB, provides purchase protection and extended warranty of up to 24 months.
  • Mashreq Platinum Elite Credit Card: Also offers purchase protection and an extended warranty of up to 24 months.

Credit Shield

  • FAB Low-Rate Credit Card: Covers outstanding balances in case of unforeseen circumstances, providing peace of mind.
  • ADCB SimplyLife Credit Card: Offers a similar credit shield feature.
  • Emirates NBD Visa Platinum Credit Card: Also includes credit shield benefits.
  • Mashreq Platinum Elite Credit Card: Provides credit shield coverage.

Mobile App Management

  • FAB Low-Rate Credit Card: The FAB Mobile app allows full card management, payments, and transaction alerts, enhancing user convenience.
  • ADCB SimplyLife Credit Card: Offers similar functionalities through the ADCB Mobile app.
  • Emirates NBD Visa Platinum Credit Card: Managed through the Emirates NBD Mobile app, with similar features.
  • Mashreq Platinum Elite Credit Card: Managed through the Mashreq Mobile app, providing equivalent functionalities.

SMS Alerts

  • FAB Low-Rate Credit Card: Provides SMS alerts for all transactions, helping users stay informed.
  • ADCB SimplyLife Credit Card: Similar SMS alert features.
  • Emirates NBD Visa Platinum Credit Card: Offers SMS alerts for transactions.
  • Mashreq Platinum Elite Credit Card: Includes SMS alerts for all transactions.

Extended Payment Plans (EPP)

  • FAB Low-Rate Credit Card: Offers 0% Easy Payment Plans (EPP) for various purchases, allowing users to spread the cost without incurring interest.
  • ADCB SimplyLife Credit Card: Provides similar 0% EPP options.
  • Emirates NBD Visa Platinum Credit Card: Offers 0% EPP for various purchases.
  • Mashreq Platinum Elite Credit Card: Includes 0% EPP options.

Does the FAB low-rate card compare well?

The FAB Low-Rate Credit Card excels in offering some of the lowest interest rates available, particularly for UAE Nationals, and competitive balance transfer options, making it highly suitable for those looking to manage and minimize debt costs. Its cashback offer is more generous than several rivals, and the comprehensive protection benefits add to its appeal. However, it may fall short in extended warranties compared to other cards like ADCB and Emirates NBD. Overall, the choice between these cards will depend on individual financial needs, spending habits, and the specific benefits one values the most.

Conclusion

The FAB Low-Rate Credit Card is an excellent choice for individuals focused on minimizing interest payments and managing their debt efficiently. With its low interest rates, balance transfer offers, and robust protection benefits, it provides significant financial advantages. However, potential cardholders should consider the balance transfer fees, eligibility criteria, and whether the card’s benefits align with their spending habits before applying.

The FAB Low-Rate Credit Card is an excellent option for individuals looking to minimize interest costs and manage their debt more effectively. With competitive interest rates, balance transfer offers, and comprehensive protection benefits, this card is ideal for those seeking financial efficiency. The additional perks and ease of management through the FAB Mobile app make it a practical choice for everyday use.