Understanding Credit Scores in the UAE

In the dynamic financial landscape of the United Arab Emirates (UAE), a strong credit score is your key to unlocking vast opportunities, from purchasing your dream home to acquiring the latest car model. This guide delves into the crucial aspects of credit scores in the UAE, including their calculation by the Al Etihad Credit Bureau, their significant impact on financial endeavors, and strategies to enhance your score. Unravel the mysteries of credit scoring with us and turn this three-digit number into a powerful ally in achieving your financial goals in the UAE’s thriving economy.

The Basics of Credit Score Here

A credit score, essentially, is a numerical expression based on a level analysis of an individual’s credit files, to represent the creditworthiness of an individual. In the context of the UAE, this score plays a pivotal role, not only in securing loans and mortgages but also in facilitating utility connections and leasing agreements. It’s a metric lenders use to evaluate the risk of lending money or extending credit to borrowers.

The UAE Credit Score System

In the UAE, the Al Etihad Credit Bureau (AECB) is the cornerstone of the credit reporting system, collecting and maintaining financial information from various sources to generate credit scores. These scores range from 300 to 900, with higher scores indicating lower risk to lenders.

Minimum Credit Score For Loan in UAE

UAE required for a loan in the UAE typically starts at 620 for basic loan approval. However, for more favorable loan terms and interest rates, a score of 680 or above is generally preferred by lenders. Keep in mind, these benchmarks can vary depending on the lender and the type of loan.

  • Personal Loans: Minimum around 580, but higher scores are better.
  • Mortgages: Minimum might be higher, potentially in the range of 650 to 700.

Checking my credit score online in the UAE?

This guide will take you through the process step by step, ensuring you can easily access your credit information.

Step 1: Visit the Al Etihad Credit Bureau (AECB) Website

  • Start by navigating to the official website of the Al Etihad Credit Bureau (AECB) The AECB is the official entity responsible for compiling credit reports and scores in the UAE.

Step 2: Register for an Account

  • If it’s your first time, you will need to create an account. Click on the “Register” or “Sign Up” option.
  • Provide the required personal information, such as your Emirates ID, full name, and contact details. Ensure that all information entered matches your official documents to avoid any discrepancies.

Step 3: Verification Process

  • Follow the instructions to verify your identity. This may include entering a one-time password (OTP) sent to your registered mobile number or email.
  • For some users, especially expatriates, additional verification through document upload (such as passport or visa copies) may be required.

Step 4: Accessing Your Credit Report and Score

  • Once logged in, navigate to the section labeled “Credit Report” or “Credit Score.”
  • Select the option to view your credit score. There might be a detailed report option that includes your score and a comprehensive credit history.

Step 5: Payment for Credit Report

  • Accessing your credit score and report may require a fee. The AECB website will guide you through the payment process.
  • Payment can typically be made using a credit or debit card. Follow the prompts to complete the transaction safely.

Step 6: Review Your Credit Report and Score

  • After payment, you will be able to download or view your credit report and score online.
  • Take the time to review your credit score and the details within the report carefully. Look for any discrepancies or unexpected entries.

Step 7: Addressing Discrepancies (If Any)

  • If you find any inaccuracies in your report, you can dispute them through the AECB website. There is usually a section for disputes or corrections where you can submit evidence to support your claim.

Step 8: Regular Monitoring

  • Regularly checking your credit score is good practice. It allows you to monitor changes, understand how your financial behavior affects your score, and detect any potential issues early.
Checking my credit score online in the UAE?
Checking my credit score online in the UAE?

Fee and Validity of the AECB Credit Score Report in the UAE:

Fee Structure:

  • For Individuals:
    • Online Report: AED 84 (VAT included)
    • Report at Walk-in Branch: AED 105 (VAT included)
  • For Companies:
    • Online Report: AED 157.50 (VAT included)
    • Report at Walk-in Branch: AED 189 (VAT included)

Validity Insights:

While the Al Etihad Credit Bureau (AECB) does not specify an explicit validity term for the credit report, it’s widely acknowledged that the relevance of a credit report may begin to wane after 3 months. This timeframe is suggested because financial activities and updates from lenders to the AECB occur at intervals, which are not in real-time.

What is considered a good credit score in the UAE?

In the UAE, a credit score is generally considered good if it falls within the range of 680 to 730. Scores above 730 are considered excellent.

Here’s a breakdown of the typical credit score ranges in the UAE:

  • 300 to 619: Bad credit score
  • 620 to 679: Fair credit score
  • 680 to 730: Good credit score (Target for this article)
  • 731 and above: Excellent credit score

10 Tips for improving credit score in the UAE

1. Pay Bills on Time

Timely payment of utility bills, credit card bills, and loan installments is crucial. Late payments negatively impact your credit score, so set reminders or automate payments to ensure punctuality.

2. Maintain Low Credit Card Balances

High credit utilization can lower your credit score. Aim to keep your credit card balances well below the credit limits, ideally under 30%, to show that you manage credit responsibly.

3. Limit New Credit Applications

Every time you apply for credit, a hard inquiry is made, which can slightly decrease your score. Limit the number of new credit applications to avoid unnecessary hits to your credit score.

4. Regularly Monitor Your Credit Report

Check your credit report at least once a year to understand your financial standing and to catch any errors or fraudulent activities early. Dispute inaccuracies to ensure your report reflects your true credit behavior.

5. Reduce Debt

Work towards paying down existing debt, especially high-interest debt. Reducing your overall debt burden improves your debt-to-income ratio, positively affecting your credit score.

6. Diversify Your Credit Mix

Having a mix of different types of credit (such as a mortgage, car loan, and credit cards) can be beneficial if managed well. It shows lenders that you can handle various types of credit responsibly.

7. Avoid Closing Old Credit Accounts

The length of your credit history contributes to your credit score. Keep older accounts open, even if you don’t use them frequently, to maintain a longer average credit history.

8. Negotiate with Lenders

If you’re struggling to make payments, don’t just skip them. Contact your lender to negotiate terms that might allow you to maintain your credit score while addressing your financial challenges.

9. Use Credit Builder Products

Consider using credit builder loans or secured credit cards if you’re starting to build or rebuild your credit. These products are designed to help establish a positive credit history when used wisely.

10. Educate Yourself on Financial Management

Continuous learning about personal finance management, credit scores, and responsible borrowing can provide you with the knowledge to make informed decisions that positively impact your credit score.

Do debit card transactions impact my credit score in the UAE?

No, debit card transactions in the UAE do not impact your credit score.

Here’s why:

  • Debit vs. Credit: Debit cards directly deduct funds from your bank account when you make a purchase. There’s no borrowing involved, so there’s no record sent to credit bureaus.
  • Credit Reporting: Credit bureaus like the AECB rely on information from lenders about your borrowing and repayment habits. Since debit card transactions aren’t considered borrowing, they aren’t reported.

How do credit card activities influence credit score in the UAE?

Credit card activities significantly influence your credit score in the UAE. Here’s how:

Positive Impact:

  • On-time payments: This is the single most important factor. Paying your credit card bill in full and on time consistently demonstrates responsible credit use and boosts your score.
  • Low credit utilization ratio: This ratio compares your outstanding credit card balance to your total credit limit. Keeping this ratio low (ideally below 30%) shows you’re not overextending yourself and improves your score.

Negative Impact:

  • Late payments: Even a single late payment, especially one exceeding 30 days, can significantly damage your credit score.
  • High credit utilization ratio: Carrying a high balance on your credit card consistently suggests potential difficulty managing debt and lowers your score.
  • Maxing out credit limits: Reaching your credit limit indicates financial strain and negatively impacts your score.
  • Frequent credit card applications: Multiple credit card applications within a short period trigger inquiries that can lower your score.

Overall, responsible credit card use – paying bills on time and keeping balances low – is crucial for building and maintaining a good credit score in the UAE.

How long does it take for credit scores to update in the UAE?

Updates to your credit report can occur within a month following a reporting cycle, it’s reasonable to expect potentially significant changes in your credit score to become apparent within one to two months after a creditor reports a change. However, for the change to be meaningful and positive, consistent financial behavior over time is crucial.

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Method to calculate credit score in the UAE

The exact formula used to calculate your credit score in the UAE is not publicly available by the Al Etihad Credit Bureau (AECB). However, they do disclose the factors and their weightage that contribute to your score. Here’s a breakdown:

  • Payment history (35%) – This is the most crucial factor. Timely repayments of credit cards, loans, and bills significantly improve your score.
  • Credit utilization ratio (30%) – Keeping your credit card balances low compared to the credit limit shows responsible credit usage.
  • Credit inquiries (10%) – Multiple loan applications in a short period can negatively impact your score.
  • Length of credit history (15%) – A longer history of managing credit responsibly strengthens your score. This can be a challenge for expats with limited credit history in the UAE.
  • Islamic financing (10%) – The UAE’s Islamic financing options, such as Ijara and Musharaka, are factored into your score alongside conventional loans.

Where can I obtain my credit score in Dubai?

Online through the AECB Website

  • Step 1: Visit the Al Etihad Credit Bureau’s official website
  • Step 2: If you are a new user, you will need to register for an account. Click on the registration or sign-up link and follow the prompts. You will be required to provide personal information, such as your Emirates ID, to verify your identity.
  • Step 3: Once registered and logged in, navigate to the section where you can request your credit report and score.
  • Step 4: Select the type of report you wish to purchase. There are options for a basic credit report, a credit report with score, or a subscription service for regular updates.
  • Step 5: Complete the payment process as directed. Payment can typically be made using a credit card or through other online payment methods.
  • Step 6: After payment, you will be able to download or view your credit report and score online.
obtain my credit score in Dubai
obtain my credit score in Dubai

AECB Mobile App

The AECB also offers a mobile app that provides an easy and convenient way to access your credit score and report. The app is available for download from the App Store for iOS devices and Google Play for Android devices. After downloading, register or log in using your Emirates ID and follow similar steps as on the website to obtain your credit report and score.

Customer Service Centers

If you prefer in-person assistance, you can visit one of the AECB’s customer service centers located in Dubai and other parts of the UAE. You will need to bring your Emirates ID and other required documents. The staff at the center can guide you through the process of obtaining your credit report and score.

Things to Remember:

Strategies to boost credit score within 30 days in the UAE

Focus on what you can control in the short term:

  • Pay any outstanding balances: Paying off past-due accounts, especially those over 30 days late, can have a positive impact. However, the exact timeframe for this impact to show on your score can vary.
  • Dispute any errors on your credit report: The AECB offers tools to access your credit report. Look for any inaccuracies and dispute them promptly. Corrections can take time to reflect, but catching and addressing errors can be beneficial.
  • Become an authorized user on a good credit card: If a friend or family member has a good credit history and is willing to add you as an authorized user on their credit card, this can potentially give your score a small boost. However, ensure they are a responsible cardholder, as their late payments will negatively impact your score as well.

Strategies with potential delayed impact (may not show improvement within 30 days):

  • Request a credit limit increase: If you have a good track record of on-time payments with your current credit card limit, requesting an increase can improve your credit utilization ratio (assuming you don’t increase your spending). However, processing such requests can take time.
  • Make a larger than minimum payment on your credit card: This can help lower your credit utilization ratio, but the update on your credit report might not be reflected immediately.

What’s the ideal credit score according to UAE credit agencies?

In the United Arab Emirates (UAE), credit scores range from 300 to 900, as calculated and reported by the Al Etihad Credit Bureau (AECB). The higher the score, the more creditworthy a borrower is considered by lenders. While the AECB does not officially define an “ideal” credit score, scores are generally interpreted as follows:

  • 300 – 619: Poor – Indicates a high risk to lenders and may result in loan applications being rejected or offered at higher interest rates.
  • 620 – 679: Fair – Considered acceptable, but not in the optimal range. Borrowers may receive loans but not at the most competitive rates.
  • 680 – 730: Good – Reflects reliable financial behavior and good credit management, resulting in favorable loan terms.
  • 731 – 900: Excellent – Demonstrates exceptional creditworthiness, offering the best chance for loan approval at competitive interest rates.

Ideal Credit Score in UAE

While any score above 680 is generally considered good in the UAE, aiming for a score above 730 is advisable to be in the “Excellent” range. This range signifies to lenders that you are a low-risk borrower, often leading to better loan conditions, lower interest rates, and higher chances of approval for credit applications.

It’s important to note that the “ideal” credit score can vary depending on the lender’s criteria and the type of credit product. Some financial institutions may have specific scoring models or additional requirements for loan approvals beyond the credit score itself.

Key Factors Influencing Credit Scores in the UAE:

  • Repayment History: Timeliness in bill and loan repayments is crucial.
  • Credit Utilization: The ratio of your current credit card balances to your credit limits.
  • Length of Credit History: The duration over which you’ve maintained credit accounts.
  • Types of Credit: A mix of credit types, including credit cards, personal loans, and mortgages, can affect your score.
  • Credit Inquiries: The number of times you’ve applied for credit.

Unique to the UAE is the consideration of Islamic financing products, which adhere to Sharia law, and the challenges expatriates face in building a credit history due to their potentially transient status.

Building and Improving Your Credit Score

For Newcomers or Those with Limited Credit History:

  1. Start Building Credit Early: Apply for a credit card or a small loan to begin establishing a credit history.
  2. Utility Bills: Ensure utility bills are in your name and paid timely, as these can sometimes be included in your credit report.
  3. Monitor Your Credit Score: Regularly check your credit score through the AECB to understand where you stand.

For Those Improving an Existing Score:

  1. On-time Payments: Always pay loans and credit card bills on time. Late payments have a significant negative impact on your credit score.
  2. Lower Credit Card Balances: Aim to keep your credit card balances below 30% of your limits.
  3. Limit New Credit Applications: Each new application can lower your credit score slightly, so apply for new credit sparingly.

Credibility and Resources

Reliable data from the UAE Central Bank and the AECB provide insights into credit trends and behaviors. For personalized credit score checks and advice, the AECB’s official website and affiliated financial advisors offer invaluable resources.

Credit Score Myths in the UAE: Fact vs. Fiction

Understanding credit scores is crucial in the UAE, but many myths can create confusion. Here’s a breakdown of some common myths and the actual facts:

Myth #1: Checking Your Credit Score Lowers It

Fact: Checking your credit score, also known as a “soft inquiry,” has no negative impact. In the UAE, you can access your credit report through the AECB for a fee. This allows you to monitor your score and identify any errors.

Myth #2: Your Salary Directly Affects Your Credit Score

Fact: While a good salary might suggest financial stability, it doesn’t directly influence your credit score. The AECB focuses on how you manage credit, not how much you earn. Factors like payment history, credit utilization ratio, and credit history length play a bigger role.

Myth #3: Only Lenders See Your Credit Score

Fact: The credit score you see online might be different from what lenders see. The AECB offers various credit scores depending on the purpose (e.g., loan application, credit card application). Lenders might use specialized credit scores tailored to their risk assessment.

Myth #4: A Single Missed Payment Ruins Your Score Forever

Fact: While a missed payment can hurt your score, it’s not the end of the road. Consistent on-time payments over time will gradually improve your score.

Myth #5: You Need a High Credit Score to Get Any Credit Card

Fact: There are credit cards in the UAE designed for people with limited credit history or lower credit scores. These cards might have higher interest rates or lower credit limits, but they can be a good starting point to build your credit score with responsible use.

Myth #6: Debt Consolidation Hurts Your Score

Fact: Debt consolidation, when done strategically, can actually improve your score. By combining multiple debts into one loan with a lower interest rate, you can simplify your finances and improve your payment history. However, ensure you manage the consolidated debt responsibly.


Q: What is my credit score if I’ve never had credit?
A: Without any credit history, you will not have a credit score until you engage in financial activities that are reported to the credit bureau.

Q: What is the minimum credit score required for a loan in the UAE?
A: Lenders prefer a score above 680 for better loan terms, but requirements can vary.

Q: Can I check my credit score for free in the UAE?
A: Generally, there’s a fee to check your credit score with the AECB, though there may be occasional promotions for free checks.

Q: How is a credit score calculated in the UAE?
A: The AECB calculates scores based on payment history, credit utilization, credit history length, credit types, and new credit inquiries.

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