Credit score is a three-digit number that represents the creditworthiness of the bank account holders. Lenders use this number to determine the credit risk prior to lending loans and credit assistance. The credit score is dependent upon multiple elements including your financial status, transaction history and number of credit accounts.
Let’s dissect the process and cost of checking credit scores in Dubai in more detail.
What is a Credit Score
In simple words, a credit score is a number used to gauge your financial prudence and risk for lending bodies. The three-digit number of credit scores ranges between 300 to 900 points. The greater the credit score the higher the chances of your loan getting approved.
Who Determines Dubai Credit Score
A financial institution named Al Etihad Credit Bureau (AECB) is responsible for calculating credit scores in Dubai and other Emirates. It is a public joint stock company owned by the UAE’s Federal government. The institute collects data from different banks and financial institutions that are used to extract accurate credit scores of each individual. The credit score is also available on demand, but you have to pay a fee to know your credit score.
The score can vary from individual to individual and depends upon multiple factors. Here we have mentioned some of the factors that AECB considers while estimating your credit score.
Payment of Credit History and Its Duration
Timely payment is the most important parameter of credit score. Timely or delayed payments can significantly impact your overall credit score. Therefore, it is necessary to pay all the dues on time to get your home loan approved without any hassle. In case the payment is delayed more than 30 days, the borrower is responsible to inform the lender prior to the due date.
Type of Account
Another parameter that determines your credit score is the type of bank account you use. Operating a mix and match of different types of bank accounts is considered ideal for the credit score.
Latest Credit Activities
Your recent financial activities are also considered before estimating the overall credit score in Dubai. If an individual has already taken different types of mortgages or loans from multiple banks or has submitted an application, this may negatively impact the credit score. Similarly, if you have a negative history of timely payments, this can also reduce your score.
Amount of Debt Accumulated
The credit score is reduced automatically if an individual is unable to pay the debts. Banks and lenders hesitate to sanction loans and credit to individuals who are already in debt.
How to Check Credit Score in Dubai
The bank credit scores in Dubai can be checked by visiting the official website or office of the AECB. Login to the site and register your account. Once done with registration, provide all the necessary details required including Emirates ID and passport number. Complete the process by paying the fee of checking your credit score. You will then receive the credit score report within a few minutes.
The fee structure for checking your credit score is mentioned below.
- The credit report and score checking fee for individuals and establishments is AED 84 for online and AED 105 for walk-in customers.
- For the companies, the fee is AED 157.5 (Online) and AED 189 (Walk-in).
You can also download the AECB CreditReport app (Android | Apple) for checking credit scores and reports.
How to Read Credit Score Range
Credit Score Range | Category | Stars |
|---|---|---|
Credit Score Range 300 to 540 | Category Very Low | Stars 1 |
Credit Score Range 541 to 650 | Category Low | Stars 2 |
Credit Score Range 651 to 710 | Category Medium | Stars 3 |
Credit Score Range 711 to 745 | Category High | Stars 4 |
Credit Score Range 746 to 900 | Category Very High | Stars 5 |
The credit score range elaborates on the individual’s position and the likelihood of getting loan approval. Here are the different credit score ranges and the categories in which they fall.
This was the simple process of checking your credit score in Dubai. The credit score is a major parameter used by almost all banks and financial institutions to gauge the risk factor before sanctioning a loan to an individual. Therefore, if you are planning to purchase an apartment for sale in Dubai on the mortgage, you must have a better credit score.
Stay tuned to UAE’s top property blog for more information on how to get a better credit score in Dubai.
