How to check your credit score in UAE

Aug 31, 2022

How to check your credit score in UAE
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One of the most crucial indicators of your financial health is your credit score. It is essentially a measure of your probability of repaying a loan, and as such, it is an indication of your ability to obtain credit and the expenses associated with it. A high credit score suggests that you are likely to repay any money borrowed, whereas a low or poor credit score indicates that lenders will see you as a risky possibility and will be hesitant to lend you money. If you want to get a loan, rent an apartment, or buy something on credit, your credit score will almost definitely come into play. As a result, it's in your best interest to learn how credit scores function and how to check your credit score in the UAE.


What is a credit score and how is it calculated?

A credit score is a three-digit figure that sums up your credit report's details and credit worthiness. The better your credit score, the more perks you'll be able to take advantage of, such as faster processing, reduced paperwork, competitive interest rates, higher loan amounts and credit limits. Your credit score is calculated by taking a snap of your credit report for analysis to generate your credit score. Your credit report is divided into different categories. Payment history is the most important category as it includes the due amount, the due date, transactions made and the current outstanding amount. 


Why is it necessary to check your credit score?

The Al Etihad Credit Bureau (AECB) in the UAE issues credit scores. It compiles data from loan, mortgage, credit card, and phone bill activities to create a credit report for financially active residents in the country. If your credit score is low, you may be compelled to pay a high-interest rate, making repayment difficult or possibly prohibiting you from borrowing money. Even if your credit score isn't very low, it's worth checking to ensure that it's accurate, because even little changes to your credit score can have a significant influence on your ability to obtain credit. Therefore, to prevent being turned down for a personal loan in UAE, make sure your credit score is excellent before applying.


How to achieve a good credit score?

There is no simple recipe for improving your credit score, but there are three essential elements that can help: reducing the number of credit cards you have, continuously reducing outstanding balances, and making payments on or before the due date. Even if you can't afford to pay off your entire credit card payment in one month, make sure you pay at least the minimal 5%. Avoid utilizing more than 30% of your authorized credit card limit to keep your credit utilization low, because healthy financial practice will result in a healthy credit score.


How to check your credit score in UAE?

Visit AECB's official website and get registered. Once you’ve registered and logged into your account, you will be able to view your credit score, along with the details that make up your credit report. Ensure you monitor your credit score and make changes as needed to optimise the amount of credit you can obtain and to get the best potential interest rate. 


Furthermore, using an online loan eligibility calculator is a simpler approach to evaluating loan eligibility. The BanqMart loan eligibility calculator not only helps you calculate the amount you are entitled to borrow and obtain attractive loans, but it also assists you in obtaining the perfect credit card that’s ideal for your needs.

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