Credit Score in the UAE: All You Need to Know

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Have you been affected financially by the coronavirus pandemic? The foremost step that must be taken is making an attempt to resolve any debt issues. Begin by requesting a copy of your credit report from AL-Etihad Credit Bureau to know your credit score., an online marketplace for used cars in Dubai, did some research to share the details with you.

The Bureau was established in November 2014, it aims to introduce a greater degree of transparency in the money lending industry. The AL-Etihad Bureau operates by maintaining an assembled credit record of the citizens who are financially active. This financial activity extends to collecting credit data. This data includes loads, mortgages, credit card and phone bill payments.

Basically, a record of an individual’s entire financial standing is preserved. Marwan Lutfi, the current chief executive at the AL-Etihad Bureau conveyed to the general public that it is crucial for people to know their credit score. This is regardless of the individual’s current financial standing, it does not matter whether someone is barely staying solvent during global pandemic or their accounts are boosting from earnings.

 A credit score is basic knowledge that each citizen should know about themselves. In an interview with the National held for the “Pocketful of Dirhams” podcast, Marvan Lutfi communicated that AL-Etihad Bureau currently possesses credit data of about 8 million citizens and 600,000 companies. The overall number for active borrowers exceeds 2.92 million; there are a total of 8 million credit facilities available in the Bureau. 

What is a credit report?

Many people have difficulty understanding what a credit report entails. The credit report is a series of documents that contains an individual’s entire credit history throughout the premises of Emirates. This includes any credit card activity, a loan and other forms of payment made in the name of a particular individual.

This record also has proof of any payment on which an individual has defaulted. A record is also kept of any irregularity such as a cheque that bounced. The document also contains personal details of an individual, such as address, phone number and other contact information. 

How does the AECB gather credit information?

A person can only have a credit report in case they have taken on any credit in their name; this can be through a credit card or other financial and commercial transactions. The Bureau compiles its data from banks, finance companies and at times the telecom companies. Where it is necessary, an individual’s tenancy records or utility bills might also be analyzed. The salaries of individuals are not taken into account until the very last stages of data compilation. All these documents help compile a cohesive credit report. 

AECB is working with the UAE’s top jurisdictional courts in Ras Al khaimah, Abu Dhabi and Dubai including the federal courts. This ensures that any rulings that occur against individuals regarding payment issues are recorded.

What is a credit score?

The AECB initially only rolled out credit reports, but it is now also issuing credit scores of individuals. Your credit score is going to be a number between 300 and 900 that will determine your creditworthiness on how likely you are to make your loan or credit card payments on time.

According to Mr. Lutfi, a score of 300 signifies that you have defaulted on a payment. He also added that it could mean that one is 90 days late for a payment or has had at least four bounced cheques in the last year. There is a proportional relationship between the high probability of missing payments and number of bounced cheques.

How do you get a great top credit score?

According to Mr. Lutfi, there is no winning formula that can give you a top score but there are three things that can boost it:

  1. Reducing the number of credit cards you have
  2. Consistently and frequently reducing the outstanding balance
  3. Making your payments before or on the due date

Why is it important for you to track your credit score?

Financial institutions analyse your credit score history and data to discern if you are a good candidate to lend money to or not. Those who have better credit scores are given preferential packages based on the credit services.

It is useful to point out that while the bank does use your credit report or score to make their lending decision, the decision also depends on the bank’s own criteria at that point in time.

How is the credit score calculated?

An individual’s credit score is calculated using around 2000 data points from different sources such as finance companies, banks and telecom companies. The core also depends on your recent credit behaviour. So, while you may have been an exemplary borrower for years, if you miss a few recent payments, be prepared for that to put a dent in your credit score. 

According to Mr. Lutfi, values that are calculated for a good credit score include; the number of your credit cards, your past due amounts, how those credits are utilised, missed payments or late payments.

How can you access your credit score and report?

You can log onto and download your credit score and report for AED 105. Citizens who only want the credit score can get it for AED 31.5.

The process is pretty simple; you can register your details, provide your passport number and Emirates ID, make the payment and you will receive the report in a few minutes.

Another way to get your hands on the report is to install the AECB app and you can download your report from there.Whether you’re planning to sell any car or buy used cars in Dubai, you can do so easily through, which provides a transparent and hassle-free experience.

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