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You might have thought there will not be any exam, test or critical evaluation to deal with in upcoming life but, you were wrong. Life is full of tests, and evaluation you are being constantly judged on numerous levels by some scores or the other. This article will talk about one such score that is, Credit Score. Check out this article to know everything about credit score in UAE.
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To understand credit score, first, let us look at the meaning of credit report. It can be defined as a detailed breakdown of an individual's responsible repayment of debts. It is prepared by an authorized government organization by gathering a person’s credit history from numerous sources such as banks, credit card providers, lenders etc. In the UAE, the concerned organization is the Al Etihad Credit Bureau (AECB). The organization was set up by the federal government of the UAE in the year 2010 and allows the people to check their AECB credit score.
Let’s understand the credit score now.
Credit score is an advanced version of a credit report that was introduced by AECB in the year 2018. It is a statistical number that evaluates a consumer's creditworthiness. In simple words, AECB score is a three-digit number that predicts how likely an individual is to make credit card and loan repayments. The number ranges from 300 to 900. Higher the score, less risky you are to lend.
Credit Score UAE is primarily used to assess the potential risk posed by the lender while lending money to the borrower. This evaluation helps the lending company mitigate its losses due to bad debt.
In other words, evaluation of credit score helps financial institutions make better-informed decisions to process loan and credit card applications at a faster pace. It also let the financial institutions provide preferential benefits for those with high scores.
Credit Score in UAE is calculated by the Al Etihad Credit Bureau (AECB). It is a dynamic number that is calculated by analysing an individual’s credit history. AECB accesses credit history through various sources such as banks and finance companies. Depending on the recent AECB report, the score may change from time to time.
A few factors that may impact an individuals’ credit score are:
One common question that people ask in regard to the credit score is how to check Etihad Credit Bureau Score?
To check your credit score in the UAE, you may contact the AECB office either in Dubai or in Abu Dhabi. To request for credit score you will need to provide your Emirates ID and other Identification documents along with a request form.
AECB charges AED 60 + VAT to provide you with your credit score. The procedure of AECB credit score check is pretty simple and convenient.
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You can easily improve your credit score. It just requires careful planning. Just follow the following steps:
Now that you know all about the credit score you can’t deny the importance of having a good score and credit report UAE. So, if you are having a low credit score, start improving it right now.