Dubai: Wondering if can get approved for a bank loan, or if you will be able to buy a new car, or finally start your own business? The key that unlocks all those doors for you is your credit score.

What exactly is a credit report, and how can you find out what your credit score is? We break down all the details for you in our guide below.

What is a credit report and credit score?

A credit report is a summary of your personal information, financial obligations and bills for the past three years, as well as your last reported salary. This data is collected from banks, financial firms, telecommunications and utility providers, courts, and government entities.

A UAE credit report has the following data:

  • Personal information: Your full name, Emirates ID, contact details, and address.
  • Credit accounts: All your active and closed credit cards, as well as loans.
  • Payment history: Payments that you have made on time or late, your payment patterns, defaults and related penalties.
  • Outstanding balance: Current debts and available limits.
  • Credit enquiries: A record of when banks and other financial institutions last checked your credit.
  • Legal information: Any bounced cheques, court judgments or declarations of bankruptcy.

Considering all the above data, the authorities generate a credit score for you. This is a number that predicts or represents your ability to pay your loans and financial obligations.

Al Etihad Credit Bureau (AECB) is the federal government organisation that is responsible for aggregating credit data and issuing financial reports for individuals and companies.

How is the credit score calculated?

The AECB credit score is a three-digit number between 300 and 900 that indicates your creditworthiness. Think of it like a report card for your finances. The AECB ranks credit scores in the following order:

  • Excellent: Score range of 746 to 900
  • Very good: Score range of 711 to 745
  • Good: Score range of 651 to 710
  • Fair: Score range of 541 to 650

Banks, landlords, telecom and utility providers, employers and insurance companies all use this number to predict how reliable you are with payments, and your credit score directly affects your interest rates and approvals. Below 540, you may find it difficult to get applications for loans or credit cards approved. 

What impacts my credit score?

Every bounced cheque or late payment on utility bills, post-paid mobile phone plans, credit cards and loans can affect your credit score, and ultimately impact your ability to apply for financial products. It may even affect your likelihood of renting a home or landing a job.

On the flip side, a strong credit score can help you get faster approvals and lock in lower interest rates when applying for loans. It can also help you secure lower insurance premiums, and access more financial opportunities across the board. This is why it’s vital to maintain a good credit score, with good financial habits.

The AECB tracks these three factors that influence your credit score:

  • Credit management: How well do you manage your credit limits?
  • Payment track record: Do you pay your bills and loans on time?
  • Credit contracts: How many loans and credit cards do you currently have, and are you managing all of them appropriately?

Can credit scores be improved?

Fortunately, credit scores are highly dynamic and can be actively improved over time. The AECB updates and tracks your credit score in real-time, so building consistent and responsible financial habits can immediately boost your score.

Banks around the UAE have outlined several ways to improve your credit score. Here are some strategies to keep in mind:

  • Maintain low credit utilisation: Keep your credit card balance below 30% of your total available credit limit, since using too much of your available credit can negatively impact your score.
  • Make timely and consistent payments: Ensure that you pay your loans and credit cards by the due date, even if you are making the minimum required payment. Bounced cheques are particularly harmful for your credit score.
  • Limit the number of credit cards: Avoid applying for multiple loans or credit cards, especially in a short period. Reducing the number of active credit cards and loans you hold automatically improves your credit score.
  • Dispute inaccuracies: Mistakes happen, but inaccurate information on your credit report can drag your score down. The AECB permits you to dispute inaccurate information on its website in order to restore your score (more on this, below).

How can I check my credit score?

There are several ways to check your credit score, such as via your bank, or through government apps like TAMM in Abu Dhabi and DubaiNow in Dubai. However, the official website of AECB is the best way to get your score.

AECB permits individuals to check their credit score for Dh10.50, and their credit report for Dh84, via their website. Follow these steps to check your credit score on AECB:

  • Visit etihadbureau.ae/login or download the Etihad Credit Bureau app, available through Apple Store or Google Play Store. Log in with your UAE PASS.
  • Select the ‘Credit Score Report’ option.
  • Pay the fee – Dh10.50 for credit score or Dh84 for the full credit report.
  • Receive your score instantly, in PDF format.

How do I dispute my credit report?

Within 30 days of purchasing a credit report, you have the ability to review the information and file a dispute with AECB if you notice any inaccuracies. The data correction service is free and lets you correct any errors or outdated information.

Although AECB does not add or edit information provided to them by various banks, finance companies, telecom companies, utilities and government entities, they can inform them to correct the erroneous information on their end, so that it can reflect in the AECB’s aggregated data system.

Here are the steps for filing a dispute:

  • Visit etihadbureau.ae/login or download the Etihad Credit Bureau app, available through Apple Store or Google Play Store. Log in with your UAE PASS.
  • Click on ‘Correct my Data’.
  • Fill out the request form and attach a copy of your Emirates ID. Attach any supporting documents related to your request.
  • Wait for an update from AECB. They will send your request to the relevant organisation to inform them of your corrections. Your credit history should be updated within 10 working days, and you will receive an email notification once the process is complete.
  • To check your updated credit report, navigate to ‘Purchase history’ on AECB’s website. Download your purchased credit report PDF file once again. It should now show you the updated credit report, with the inaccuracies corrected.