Personal Finance: What the credit bureau means to you

Have you understood the importance of the new Al Etihad Credit Bureau? The points were stressed at the debt-crisis workshops convened last week. For those who did not attend, take heed, this is what you are bound to face very soon…

1. Want to renew your residency or office lease? – Your landlord might just run a credit check on your profile and if it’s not good, it will be very hard to secure alternatives.

2. Need to connect your electricity, water and telephone utilities? – Same story. If you know that you are not credit worthy but your rent has escalated and you can’t afford it and are contemplating moving to another location or emirates, then you have no choice but to stay exactly where you are unless you can find a landlord who does not undertake these checks. Maybe now not everyone checks, but very soon everyone will begin to check.

3. Lost your job and need to find a new job? – Same situation. Employees may opt to run a credit check on your profile to reduce their risks, so if you are heavily indebted, chances are you will not secure employment and this has been the policy in most key countries globally for decades.

4. Need to travel long distances to your place of employment and need a vehicle? – This is like taking a loan, credit card or any other credit facility so unless you are credit worthy or can justify your negative report by way of proof of payment or similar, this just won’t happen. You will have to resort to multiple buses and trains daily or seek alternative transport.

5. Planning to hire a vehicle? – You are not going to bypass any credit check and most certainly in this situation, credit checks will be done because, of course, it is a risk so they need to ensure they will not lose money.

6. Need to enroll your children into schools? – It will also not be very long when credit checks will be done on parents enrolling children into schools as fees are steep and so credibility plays a crucial role in this process.

You should realise that this process will transform the UAE communities and societies to improve their own financial well-being and dispositions and directly improve banks' status and the economic situation. This is not just about you, or about banks being strict. Nor is “it unnecessary” as I heard someone say the other day.

World economies thrive more when regulated, stringently monitored. Nothing lasts forever and at some point this credit bureau was inevitable and my opinion is, it could not have come sooner because debtors were running rampage with salary certificates presented for credit facilities unknown to other banks.

I would say the entire action of debtors was unfair on the economy as you just have to review the absconding rate history and there lies the core reason.

I must share that I was surprised at the number of debt-crisis workshop attendees who were very attentive and many interactive but the downside was once it was over, only  few reached out to me to ask questions.

Even afterwards I had initially requested that a separate office/room be allocated for those who wished to discuss their problems with me and only about two people approached me, even they had the privacy.

People, you cannot sit in a debt-crisis workshop, hear the truth, facts and new regulations and not reach out for help because I could feel the stress, tension, solemn mood and unhappiness. I am intuitive and I sense these emotions and it was not a good feeling. I had one HR Manager who attended the workshop stand up and address the audience stressing that so many of them had dire problems and should reach out to resolve them now, that this was the opportunity to do so.

How many times should I remind people facing a debt-crisis that unless you learn to view the situation differently by applying life-changing habits and actions, nothing can or will change. The situation is entirely in your hands, it is only up to you to help yourself.

Only if you take responsibility and learn to pursue the action plan can you get your life in order. Request your credit report, raise any disputes if you need to request changes and continually monitor your profile.

Yes, you can request changes or query any information you find incorrect by completing a dispute form which is available on the Al Etihad Credit Bureau website. And remember nobody can run any credit report without your authority. So go and familiarize yourself with the regulation and see what your rights are so you are well aware of them.

It seems that Al Etihad Credit Bureau has gone to great lengths to facilitate workshops and other events to create awareness within banks, financial institutions and retail organisations so you need to take the time to review the website as there is a host of information that will serve you well.

[Note 1:  Theda Muller is a UAE-based author of two books: Embrace Financial Freedom Volume One: 10 Proven Ways To Release Debt And Emotional Fears In Today’s Economy, and Volume Two: Releasing Fear And Bouncing Back From A Debt Crisis.
She also conducts webinars and workshops on debt recovery.]

[Note 2: The views expressed are the author’s own and do not reflect in any way, the views of Emirates 24|7. Readers are advised to carry out their own due diligence before taking any decision.]

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