A low-interest credit card can be a game-changer if you're looking to manage expenses or carry a balance more affordably. Unlike rewards-heavy cards that often come with high APRs, low-interest cards prioritize cost control – making them ideal for emergencies, big-ticket purchases, or bridging short-term cash gaps.
Here's why they make sense:
- Lower interest = lower debt stress. Monthly interest charges can add up quickly, especially if you're only paying the minimum.
- Great backup tool. If life throws you a curveball (unexpected bills, delayed salary), these cards reduce the financial strain.
- Still come with perks. Today's low-interest cards offer discounts, free cards, even travel and lifestyle benefits.
Now let's break down three of the best options in the UAE.
FAB Low-Rate Credit Card – 1.5%–1.99% Interest Rate
FAB has discontinued this card: its product page now sits under FAB's discontinued range and carries no application form, and the card is absent from the on-sale table in FAB's Schedule of Charges. It stays here because existing cardholders still hold it and its pricing is the benchmark the cards below are measured against. Its interest rate was among the lowest available, which made it a smart choice for anyone expecting to carry a balance.
Key Benefits:
- No bank fee on foreign spend – FAB charged none, though the card scheme's own charge and the currency conversion still applied.
- Shopping and dining discounts – with FAB's lifestyle partners across the UAE.
- Flexible payment plans – convert large purchases into affordable monthly payments.
FAB Z Card – 1.99% Interest Rate
If you're starting out, looking for some nice perks, but don't want to commit to annual fees, the FAB Z Card is a solid pick. It combines a low entry salary requirement with a competitive interest rate, and stacks on digital lifestyle perks.
Key Benefits:
- Free for the first year – try the card with zero commitment and then continue usage for only AED 100 per year.
- Free Careem Plus subscription for 12 months – ideal if you ride-share frequently.
- Up to 20% off on streaming services like Netflix, Spotify, and YouTube.
- Airport lounge access – great for budget travelers who want a taste of premium.
This is one of the few low-interest cards that still gives you premium lifestyle features without a steep salary or annual fee barrier.
Liv Cashback Credit Card – 3.49% Interest Rate
While it has the highest interest rate on this list, the Liv Cashback card makes up for it with high cashback potential and zero annual fee forever. If you always pay your balance in full, this card can return serious value without costing a dirham to hold.
Key Benefits:
- Up to 2% cashback on all spending – no rotating categories or complicated rules.
- Access to 25+ airport lounges worldwide
- Buy 1 Get 1 offers, dining and travel discounts through partner networks.
If you pay your full balance every month, this card gives you the most bang for your buck—free money, no fees, and lifestyle perks to match.
Pros & Cons Comparison
| Feature | FAB Low-Rate | FAB Z Card | Liv Cashback |
|---|---|---|---|
| Monthly Interest | 1.50% (UAE) / 1.99% (expat) | 1.99% | 3.49% |
| Annual Fee | AED 315 | Free 1st year, then AED 105 | Free for life |
| Minimum Salary | AED 10,000 | AED 5,000 | AED 5,000 |
| Best Perks | Zero forex fees, 4 free family cards | Streaming & travel discounts | 2% cashback on all spends |
| Ideal For | Frequent spenders with some carried balance | First-time cardholders | Cashback lovers who pay in full |
| Feature | FAB Low-Rate | FAB Z Card | Liv Cashback |
|---|---|---|---|
| Monthly Interest | 1.50% (UAE) / 1.99% (expat) | 1.99% | 3.49% |
| Annual Fee | AED 315 | Free 1st year, then AED 105 | Free for life |
| Minimum Salary | AED 10,000 | AED 5,000 | AED 5,000 |
| Best Perks | Zero forex fees, 4 free family cards | Streaming & travel discounts | 2% cashback on all spends |
| Ideal For | Frequent spenders with some carried balance | First-time cardholders | Cashback lovers who pay in full |
Conclusion
The FAB Low-Rate Credit Card set the lowest rate here, but FAB no longer issues it, so it is a benchmark rather than an option. Of the cards you can still apply for, the FAB Z Card offers a low salary requirement and solid digital perks.
But if you're someone who pays off your balance every month, the Liv Cashback Card stands out. Despite the higher interest, its 2% cashback, zero annual fee, and free-for-life structure offer unbeatable everyday value.
Kredit provides informational content only and does not offer financial advice. We do not guarantee accuracy and recommend consulting a licensed financial professional before making decisions.
