You can know why credit score affects the application process, what information banks verify while processing the application, and the minimum credit score required to get loan approval.
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AECB Credit Score is linked to a unique mobile number
AECB Credit Score is a three-digit number (300 to 900) that predicts how well you have managed credit, like a home loan or personal Loan on time. AECB Credit Score plays a critical role in the Loan Approval Process. The higher the Score higher your chances of Loan Approval.
In the UAE, you can get your AECB credit score by visiting Al Etihad Credit Bureau (AECB) website AECB.gov.ae, or by downloading the app, available in Google Play and Apple Store. Your scores help lenders determine the credit risk associated with loaning you money. In the UAE, scores range between 300 and 900.
Al Etihad Credit Bureau AECB is a committed financial institution that collects credit data from individuals, banks and financial institutions. It is a Public Joint Stock Company, owned and operated by the Federal Government of UAE. It is in charge of collecting financial and credit information from all organisations in UAE and using it to prepare AECB reports and AECB credit scores. People and companies can obtain their AECB credit scores with a small fee.
Getting your AECB credit score and AECB report from the AECB comes with a small fee. A fee of AED 84 plus VAT to generate your AECB report from AECB for individuals. A fee of AED 157.5 plus VAT is applicable to generate AECB reports for companies. This fee is applicable every time you generate your AECB credit score. However, you can get your AECB report and credit score for free from Policybazaar UAE when applying for a credit card and/or credit score for personal loan as an individual.
Category | Score & Credit Report | Online Price (AED) | Walk-In Price (AED) |
---|---|---|---|
INDIVIDUALS |
Credit Report and Score | 84 | 105 |
Score | 10.5 | 21 | |
ESTABLISHMENTS |
Credit Report and Score | 84 | 105 |
Score | 10.5 | 21 | |
COMPANIES |
Credit Report and Score | 157.5 | 189 |
Score | 10.5 | 21 |
Your AECB credit score in UAE is calculated based on an aggregation of the following factors:
The payment history on the credit card is undoubtedly the most important parameter to determine the AECB credit score of an individual. It is an objective record of all the payments that you have made timely or missed, and up to how recently payments have been made or missed. Obviously, the score improves with a greater proportion of on-time payments. In case there is a significant delay in the payments extending to over 30 days, it is liable to be reported by the lender and it shall adversely impact the credit score.
A good score is reflective of a history of making timely payments. Models that construct your score look at the average age of your credit when factoring in credit history.
Having a mix of accounts, whether they be retail or credit cards, would help improve your AECB credit score.
If the person has opened multiple accounts in recent times or submitted applications to open accounts, they could potentially come under the scanner. This can be perceived to be a sign of financial trouble, thus may lower AECB credit score.
The second most important parameter is the amount that has been accumulated by way of loans on the credit card. This shall be based on the entire amount that is owed, and the proportion of money owed to the amount of credit that lies available in the card account.
As explained before, AECB credit score are a direct reflection of an individual’s creditworthiness. This makes your score of utmost importance for lenders like banks and other institutions that either lend money or do business on a foundation of trust. Credit score can be used in the following ways by different entities:
Policybazaar.ae in collaboration with AECB gives you a chance to check your credit score for free. All you need to do is just enter a few basic details on our credit score UAE page to get your score for absolutely free.
In UAE, AECB credit reports issued by the authorities are used by applicants to understand the level of debt at which they are currently, and in order to have a clear understanding of the steps as well as the amount needed to break even on their accounts.
AECB credit score is a reliable parameter based on which the lender assesses the borrower. The ratings for the credit range in UAE can be described as follows:
Credit Score Range |
Stars Allotted |
Category Allotted |
---|---|---|
300 to 540 |
1 |
Very Low |
541 to 650 |
2 |
Low |
651 to 710 |
3 |
Medium |
711 to 745 |
4 |
High |
746 to 900 |
5 |
Very High |
Does having a good credit score make life easier for you? The answer is a resounding yes. The benefits of maintaining a good AECB credit score far outweigh the cost of neglecting the same. Mentioned below are some of the lifestyle advantages that will accrue to you if you maintain a good score with due diligence:
If you are a businessman who has to constantly handle substantial flows of money from one point to another, small differences in interest rate could make a significant difference to the amount that you owe to creditors. A good AECB credit score will entitle you to lower interest rates, and this is strategically desirable from a business point of view.
A “fair credit range” comes in handy when searching for apartments for renting in a new city, since it shows reliability on the part of the prospective tenant. For instance, as per reports in 2019, the Dubai Real Estate Centre has decided to use the credit reports furnished by the Al Etihad Credit Bureau to evaluate the financial standing of the tenants. FAB Properties, which is part of the First Abu Dhabi Bank group, and is the real estate management arm of the same, has also been using the AECB’s data to assess tenants.
Car owners with good scores have a better chance of receiving good offers on their car insurance premiums. Conversely, obtaining affordable car insurance with a poor score might turn out to be a challenge in some cases.
Employers might inquire about the credit score of the job seeker among other things. A poor credit score might reflect a lack of financial discipline on the personal front, as well as a lack of seriousness when it comes to financial matters. A low credit score might reveal that the job seeker is in debt, and is struggling financially, which could affect their performance at work.
Read: Benefits of a good credit score |
A credit score might be adversely affected by the following behaviors:
A credit bureau is an organisation that keeps a track of borrowers’ credit histories, to generate aecb reports and scores. A credit bureau collects credit information from different sources and then sells them to financial institutions like banks. The financial institutions use this information to generate the credit score of individuals which represent their creditworthiness. Loans are disbursed as per the creditworthiness of the individual. Credit bureaus also generate credit score independently for both individuals and companies as an entity.
As mentioned earlier, a credit bureau’s primary function is the collection, retention, and professional disclosure of credit-related information about companies as well as individuals. At a practical level, in case a person decides to apply for any form of loan from a premier banking institution. There is a certain decision that needs to be taken, usually, there are specific criteria mentioned in the loan policy’s terms and conditions. To ensure that these criteria are being met, and there is no obfuscation on the part of the applicant, the bank shall check for the credit history of the individual. This is where the credit bureau shall be consulted. The profile of the applicant shall be forwarded to the credit bureau, which is responsible for conducting the necessary credit check. The credit bureau maintains a record of classified data of credit information about the consumers. The information is based on its own aggregated data along with any information available in the public domain. However, the final decision of whether to lend or not lies with the bank.
The legal provision that shall be applicable for the regulation of the credit information collection, as well as dissemination activities of the Al Etihad Credit Bureau, is Federal Law no. 6 of 2010. In addition, a legislation that has recently been issued namely the Cabinet Resolution no. 16 of 2014, shall be responsible for governing the operational aspects of the AECB.
Credit Score for different types of Loan | |||
---|---|---|---|
Credit Score for Personal Loan | Credit Score for House Loan | Credit Score for Car Loan | Credit Score for Student Loan |
The Al Etihad Credit Bureau, located on Sheikh Zayed Road, in Dubai is the principal agency entrusted with the aggregation as well as dissemination of credit information in the United Arab Emirates.
Credit Score |
Credit Rating |
Credit Report |
---|---|---|
The credit score is a three-digit index ranging between 300 to 900. It is denoted using a number in this range. |
A credit rating is expressed in terms of alphabetical ratings such as AA, BB, CC and so on. |
The credit report is an extensively detailed report of your credit score that’s available for reference in a tabular format. |
Applies only to individuals. |
Applies to businesses and governments as well as individuals. |
Corporations can also have credit reports which act as an index of their ability to approach financial institutions for loans. |
Some of the key terms to be mindful of when reading your AECB credit report are:
Credit monitoring refers to the routine checking of your credit history, in order to keep an eye out for any suspicious activities or discrepancies. You can do this either by checking your AECB credit report online or requesting routine mobile alerts regarding the same.
Following are some of the steps that you may take to improve your credit score in UAE:
How to Improve Your Credit Score |
As per developments in 2021, Policybazaar UAE has entered into an official partnership with Al Etihad Credit Bureau to facilitate real-time checks for your credit score, based on the AECB credit score. Customers of Policybazaar UAE can apply for credit cards based on their AECB score, which shall be pulled automatically from the system. Policybazaar.ae bears the responsibility of managing the costs of accessing the score. So, it’s absolutely free for you.
Financial institutions and experts explain that there is no pre-mixed formula to better your credit score in UAE and reach a higher number. However, there are a few things that you can try and improve to shoot up the Etihad credit bureau score:
While the AECB credit report is an essential financial indication that is professionally managed by the AECB, there is always the possibility that there might be some wrong quotations of facts and figures. The credit card holder should know that they are fully within their rights to dispute any perceived inaccuracies on their AECB report since it is their professional reputation that is at stake. You may contact the AECB Contact Centre at 800-287-328. Alternatively, you may visit one of the two AECB customer experience centres in Dubai or Abu Dhabi.
For raising a dispute, the cardholder needs to duly submit a valid copy of their original Emirates ID, and fill out the concerned ‘dispute form’. The customer shall also be required to submit a copy of the latest credit report. It may be noted that this implies that the complaint, or the dispute, will be entertained only regarding the latest reports. The allotted time for redressal of grievances thus raised is usually considered to be twenty working days. For the process of the resolution of disputes, the AECB works with the relevant lending institutions. Once the matter has been resolved, or some diagnosis of the contradiction has been reached, AECB representatives shall contact the customer and provide the solutions.
Discussed below are some of the myths that are commonly believed about AECB credit score:
Having no credit score in UAE means that you do not have a specific number tied down to your credit profile. The reasons for this could simply be that you have not used your credit options in quite some time, or that the new line of credit that you have recently acquired has not been officially registered yet.
You should not assume that this situation automatically means that you have bad credit. Of course, without a score it is difficult to get credit, but not impossible to get a credit score. In case you don’t have a score, it is important to use the other forms of credit or loans to demonstrate your ability to make loan payments on time. Finally, there is the option of going for a secured card. You need to submit a security deposit to get the account initiated, and the amount deposited in your account shall be officially treated as the credit limit. With responsible usage of the credit limit, you should be able to get your deposit back after a certain period.
Were you taken aback by surprise to realize that your credit score in UAE have changed since the last time you checked them? You must diagnose the reason, in order to take the necessary steps to bring your score back up to the mark if it experienced a slump.
The following are some of the common reasons for getting a bad credit score:
It depends on the nature of the inquiry that is being placed regarding the credit score. As per common parlance, there are two types of credit score inquiries, namely hard credit inquiries and soft credit inquiries. AECB score shall not be affected in the case of soft inquiries, while it is likely to be affected in the case of hard credit inquiries. Hard credit inquiries are related to applications for a home loan, new debt, mortgage applications and so on.
The personal identification number, which is your phone number, in this case, is routinely demanded by creditors when applications for scores are routed to them. This is for verification purposes, as well as for reporting the result to the correct person, and ensuring that it does not fall into undesirable hands.
If you maintain your credit balances diligently, owning several credit cards should not tax the existing credit score. However, at a practical level, it really comes down to the financial habits of the user in concern. If the person is careless and incurs debt on multiple cards, there is no question that the credit score will be adversely affected. Conversely, if the user is smart, and uses multiple cards to divide his debts evenly, the credit utilization ratio will be low, which is beneficial for the credit score.
In the UAE, information about missed debt payments shall stay on your credit report for up to five years.
Consumers are fully within their rights to raise disputes about any discrepancies within the credit report. If they submit the relevant documents, they may be allowed to dispute any discrepancies within the latest report.
You should look up the provisions of the Federal Data Protection Law, for your knowledge. In addition, you need to routinely monitor the credit information and be on the watch out for any discrepancies.
There may arise situations whereby an individual or a corporation might need to access the credit score check of a different individual or a company for official purposes. With that objective, the Consent is an authentication form signed by the owner of the account, which authorises the inquiring entity to access the same official from the records of the Al Etihad Credit Bureau.
There is a fluctuation in the credit scores as per changes in other parameters based on which the score is tabulated. These are updated regularly by the credit bureaus, based on updates to the data by lenders, collection agencies and other sources.
The credit score range helps you to understand where you lie in terms of creditworthiness. If you are not in a comfortable range, it helps you to create a mental picture of where you want to reach in the scale, and you are able to take credit decisions accordingly.
Any credit score above 700 is considered to be an excellent score in the UAE.
These include payment history, the amount that is owed to retailers or other financial institutions, length of your credit history, applications for new credit and so on.
You need to get it rectified at the earliest to avoid lenders getting the wrong impression about your credit habits.
If you are yet to receive your emirates ID but need a credit score/report, contact the AECB customer helpline to generate a request.
Yes, bounced cheques are also a part of credit reports generated by AECB.
Since AECB credit reports are auto-generated and electronic, you do not have to add company stamps to them.
Defaulted payments are highlighted with a red marker in the credit reports.
Joint credit facilities are shown in credit reports of both the involved individuals separately.
The most recently updated personal information will be actively visible on the credit report. But you can also find your previous entries under the personal information history section.
In this case, your credit report will only include your phone number, address and other available personal details.
Financial data is supplied daily to AECB. Non-financial institutions update data and information monthly.
Yes, you can get your AECB score even when you are living outside of the UAE as long as you have the required documents. You will need your Emirates ID, passport and registered phone number for it. Use the AECB website to get your credit score.
Yes, you can have someone else obtain your credit score/report from AECB. All you need to do is get a delegation letter or a notarized power of attorney for it. The delegation letter can be obtained from AECB itself.
AECB or any other credit bureau require a minimum amount of credit information to generate a credit report or score for any individual or company.
If you are not able to get a concrete 3-digit number as your credit score, it may be due to one of the following reasons:
To be eligible for a credit card, you need to have a minimum credit score of 580. However, credit card approval depends on the bank's discretion. Any score above 700 is a direct reflection of an applicant’s creditworthiness. Hence it increases the chances of approval significantly.
A credit score is a normalised rating between 300 to 900 depicting your credit performance. A good score ensures easy loan processing and approvals from the banks in the UAE. A score above 580 make you eligible for applying loans, however, any score above 700 is considered good and helps you get loans with minimum hassles.
You need to simply log in to the official portal at AECB.gov.ae, and register your details online to complete the registration. You can then download the report, or receive the same via email. Alternatively, you can visit policybazaar.ae’s credit score section to get a free credit score.