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There is a credit report issued by the bureau called Al Etihad Credit Bureau or AECB which includes an individual’s credit score. It consists of financial information of an individual collected from various sources and generates a report after analysis of the details. This report is then used by financial institutions and banks to determine the applicant’s capacity for loan repayment.
AECB gathers all the information of a person from sources such as financial institutions, banks, and telecom companies. After gathering this information it forms a single report.
Some of the banks in the UAE provide the information on their customers once every now and then, whereas, others such as the Union National Bank follow the approach wherein there is daily data submission from their end. This helps AECB in updating the reports of the individuals in a quick manner without any delay when required.
The credit report consists of relevant financial information such as the number of loans he or she has taken up, the individual’s credit card in UAE, the due date and any delayed payments by the individual, any skipped payments, the utilization of the limit on his or her credit card in UAE, any bounced cheques, the number of debit cards he or she holds, etc.
Along with a summarized number of pre-existing personal loans, it also details the previous loans and details on the number of applied loans and the status on these applications i.e., if the loan has been rejected or accepted by the lenders.
All these details combined in a single report will generate a score that is commonly known as the credit score.
AECB along with providing the credit analysis of individuals in the UAE also provides it for the companies that are based in UAE.
This commercial credit score helps the various banks in the approval of loans that are applied for by the companies. The businesses in UAE can obtain their credit score by visiting any of the centers of AECB along with their trade license and a letter signed by the manager, owner or partners of the business requesting a credit score of the same.
It should also be signed by an authorized bank based in the UAE.
There are certain fees and charges involved in obtaining credit reports. AECB charges an amount of AED 105 for providing a credit report including the credit score. Individuals can also just obtain a credit score exclusively for an amount of AED 31.50 and a credit report for an amount of AED 84.
The credit score for companies or the commercial credit score can be obtained by paying an amount of AED 220.
Note: The fee and charges are subject to changes.
In case an individual is applying for a secured loan, banks offer credit based on guarantor or collateral. However, it can be slightly riskier in case you are applying for an unsecured credit option, such as a credit card in UAE, or a personal loan in UAE, etc.
Therefore, in order to determine the creditworthiness of an applicant, financial institutions or banks ensure to get a financial background check on the applicant which can be determined by obtaining a credit report.
So any individual that is applying for a loan or a credit card in UAE should be sure that they have a good credit history and score in order to avoid their application being rejected.
As it was mentioned above, a credit score that is above the benchmark of 700 is said to be a good credit score. Some tips that can help an individual in maintaining a good score are:
Earlier one could get their credit report by visitng any of the centers of AECB or by filling the form online on the website. However, now AECB has launched its mobile app wherein individuals can log in and access their reports.
A credit score has become an extremely crucial factor. None of the financial institutions or banks in the UAE process a loan without analyzing the applicant’s credit report. So you should always aim at getting a good credit score and to maintain it.