Getting a loan is commonplace in the lives of every responsible adult. In these situations, having good credit is essential to enable individuals to find and access outstanding loans that provide low interest rates while still enabling them to obtain the necessary financial support. Of course, everything is new, so if you’re an adult wanting to borrow money for the first time or want to learn more about credit scores in the UAE, you’ve come to the perfect spot.
We’ll explain how credit scores are calculated, how they’re used, and how to check them in the UAE today.
What Determines Credit Scores?
Your credit score in the UAE will be represented by a three-digit number calculated by the AECB (Etihad Credit Bureau). Your credit score will have an impact on your capacity to borrow money, whether it be for a mortgage or credit card payments, regardless of where you live in any of the seven Emirates. Obtaining these kinds of financial solutions will be considerably more difficult if you have poor credit ratings. On the other side, having a high credit score will make you appear to be a low-risk borrower, giving you access to more loans with cheaper interest rates.
How Is a Credit Score Calculated?
When determining a credit score, more than 2,000 variables are taken into account. When those aspects can be boiled down into the following components, trying to grasp all of them will show to be a huge effort, not to mention needless.
Your history of on-time bill payments is the first element that makes up more than a third of your credit score in the UAE. Your credit score will be negatively impacted by any missed payments, which is one of the main reasons you shouldn’t skip a payment. Your debt load is the second aspect that accounts for around a third of your credit score. For instance, if your credit limit is frequently reached, it means you have a lot of debt, which lowers your credit score. Fourth and lastly, the remaining percentage of your score is determined by a variety of variables, including the length of your credit history, the type of credit account you have, the quantity of credit queries made against your account, and others.
How can I find out what my credit score is?
You may get in touch with the AECB by coming to one of the locations or visiting their official website if you’re curious about your credit score. You may then get a copy of your credit bureau report, which will show your credit score. Remember that you might need to provide certain paperwork, such as your passports or an Emirates ID. Other papers could also be necessary, but that will depend on the circumstances.
Get the AECB mobile app to access your credit score in another way. You may always access your credit score on that portal.
You may check your credit score now that you are aware of the factors used in credit score computations and how to determine your credit score. If it is low, we urge you to invest the time in raising it so that in the future you may benefit from superior offers that enable you to obtain the cash you require while keeping optimizing savings. Put effort towards keeping it high if it already is. With a good credit score, you’ll discover that lenders are eager to deal with you and that you have access to great loan options that may assist you in reaching your financial objectives.
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