UAE Credit Score—How It Is Calculated and How to Find Yours

As part of any responsible adult's life, getting a loan is the norm. In such cases, having good credit is vital to help adults discover and access outstanding loans that offer minimal interest while still allowing them to gain the financial support they need. Of course, there's a first time to everything, and if you're an adult looking to take out a loan for the first time or want to know what credit score is all about in the UAE, you're in the right place.

Today, we want to talk about credit scores in the UAE, telling you how it works, how it is calculated, and how you can check it:

How Do Credit Scores Work?

In the UAE, your credit score will come in a three-digit number calculated by the AECB (Etihad Credit Bureau). Regardless of your place in any of the seven Emirates, your credit score will affect your ability to borrow money, whether mortgages or credit card payments. If you have low credit scores, you will have a much harder time getting those types of financial solutions. On the other hand, a high credit score will allow you to be perceived as a low-risk individual, allowing you to access more loans with lower interest.

How Is the Credit Score Calculated?

Over 2,000 factors are accounted for when calculating a credit score. Trying to understand all those factors will prove a massive challenge, not to mention unnecessary, significantly when those factors can be condensed into the following factors:

The first factor that accounts for over a third of your credit score in the UAE is your bill payment history. Any missed payments will adversely affect your credit score, and that's one of the biggest reasons you shouldn't miss a payment. The second factor affecting around a third of your credit score is how much debt you have. For instance, if you often find yourself hitting your credit limit, this is a sign that you have a lot of debt, hurting your score. Fourth and finally, the rest of the portion of your score is taken from many factors like the age of your credit history, the kind of credit account you have, the number of credit inquiries on your account, and the like.

How Do I Check for My Credit Score?

If you are interested in finding out what your credit score is, you can contact the AECB by either visiting their official website or going to one of the centers. From there, you can send a request for your credit bureau report that will indicate your credit score. Keep in mind that you may need to include some documents such as your passports or Emirates ID. Other documents may also be required, but that will be on a case-by-case basis.

Another way to get your credit score is to download AECB's mobile app. On that platform, you can access your credit score at any time.

Conclusion

Now that you know what goes into credit score calculations and how to find out your credit score, you can go ahead and check what your score is like. If it is low, we highly recommend that you spend the time improving it so that in the future, you can enjoy better deals that help you get the money you need while still maximizing savings. If it is already high, then put effort into maintaining it. Lenders love to work with those with high credit scores, and you'll find yourself being able to work with excellent lending solutions that can help you meet your financial goals!

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