What Does a 508 Credit Score Mean?

Credit Score
Get your AECB Credit

The cost of the AECB Credit Score will be borne by Policybazaar.ae. T&C apply *

  • Easy loan approvals
  • Credit limit Increased
  • Reduced Insurance Premiums

Check your Credit Score for Free in 2 Minutes


Check your Credit Score for Free in 2 Minutes

Enter the Mobile Number Registered with your Credit Card/Loan account. You will get the OTP on this number
By Clicking on "Check Credit Score", I declare that I am a resident of UAE and holding a valid Visa and agree to the website Privacy Policy and Terms of Use.

Credit scores in the UAE, lying between the lower and upper ends of 300 and 900, respectively, are crucial regarding the approval as well as sanctioned terms and conditions for your loan and credit card application. 

As one may observe, a credit score of 508 lies near the lower end. This has significant implications for individuals with such a score, as they may have to face the general consequences of low credit scores. 

This article will give you an overview of a 508 credit score, the possibility of obtaining your preferred financial product with it, and some actionable tips that you can use to improve this score.

Credit Score - Policybazaar uae

An Overview of a 508 Credit Score 

A credit score is a three-digit number calculated by the Al Etihad Credit Bureau (also referred to as the AECB). This score is calculated as per the information in your financial history regarding loans, credit cards, utility bills, and more in terms of repayment.

Banks and other lending institutions utilise credit scores to evaluate an individual’s creditworthiness and financial stability. As a result, this score plays a prominent role when a lending institution decides whether to approve a loan or credit card application.

In the UAE, the credit scores are generally interpreted in the following manner:

Credit Score Range


300 to 540 

Very Low

541 to 650


651 to 710


711 to 745 


746 to 90

Very High

As evident from the table, a 508 credit score falls in the ‘very low’ credit score category. With this score, you can expect most lending institutions to reject your credit or loan applications, while others may accept them but charge quite high interest rates. 

What a 508 Credit Score Can Get You

Personal Loan for 508 Credit Score

As personal loans are generally collateral-free, banks and loan providers specifically examine your credit score to assess your creditworthiness and the scope of risk in approving your application. Generally, you can expect most providers to reject your application with such a low score. 

It’s worth noting that one may still find several lenders for personal loans with such poor credit scores. However, there are two caveats here: the interest rates applied would be high and the approved loan amount will be lower. 

You can obtain a personal loan even if your credit score is 508 by taking advantage of the following methods:

a) Disclosing all income sources 

b) Applying with a co-applicant or a guarantor

c) Providing collateral

Credit Cards for 508 Credit Score

With a credit score as low as 508, most credit card providers may reject your applications. With such a low credit score, a secured credit card is generally the only option available for you. If you opt for a secured credit card, you may need to provide a certain amount as collateral. 

Secured cards are helpful even if you make minimal purchases as they can be favourable with respect to your credit history. Even if secured credit cards charge high interest rates, utilising them for small expenditures and repaying the bills on time can easily increase your credit score to at least the medium category. 

Once your credit score improves, you can close the secured credit card and choose the regular unsecured credit cards. 

Credit Score - Policybazaar uae

Home Loans for a 508 Credit Score

508 credit score is a deterrent for most providers in approving a home loan application. Individuals with 508 credit scores are considered risky, which could be perilous for the loan provider considering the long repayment tenure and the large loan amounts involved here.

In case a financial institution is ready to grant home loans to individuals with a 508 credit score, they can expect higher interest rates, reduced loan amounts, high processing fees, increased documentation, and so forth. 

Car Loans for a 508 Credit Score

Individuals with 508 credit scores are less likely to qualify for car loans. In case there is an urgent requirement, they may get the car loan of their choice at high interest rates as well as high down payment requirements.  

To get car loans with a credit score of 508, you can:

  1. Offer a large down payment
  2. Apply with a co-applicant 
  3. Buy a car within your budget

Insurance Plans with a 508 Credit Score

Although credit scores don’t affect the approval of an insurance plan (unlike loans and credit cards), a low credit score can have an impact on the premiums. With a 508 credit score, you can get your chosen insurance plan at higher premiums, besides the diminished scope of coverage. 

Tips to Improve Your 508 Credit Score

Keep the following tips in mind to improve your credit score:

 Pay your EMIs and Credit Card Bills on Time

When calculating a credit score, the AECB considers all the payments of your credit card dues and loan EMIs. Thus, you can strive to repay the credit card dues and loan instalments on time to improve or build a good credit score.

To help you avoid late payments and improve your credit score, here are steps that you can follow: 

  • Keep a monthly bill filing system (whether on paper or digitally)
  • Set up due-date alerts to keep you informed about forthcoming bills
  • Use your bank account to automate bill payments

 Low Credit Utilisation Ratio

The credit utilisation ratios show how much of your credit limit you are currently using. Besides payment history, this is another critical factor considered by the AI Etihad Credit Bureau for calculating your credit score.

You can pay off your monthly credit card balances regularly and make responsible spending to keep your credit utilisation low. While a good place to start would be to keep your outstanding balances below 30% of your total credit limit, you can aim for a 10% utilisation if you wish to improve your 508 credit score quickly.

Another way to improve a 508 credit score is to increase your credit limit without increasing your balance. A credit limit increase can usually be requested online or by phone.

 Apply for Only One Loan or Credit Card at a Time

Besides the factor of instalment or credit due repayments, even your applications for the same are noted by the AECB when assessing your credit score. In case you apply for multiple loans or credit cards at a time and face rejection in them, your credit score will face a significant drop. 

To avoid such consequences, one can first compare the best loans and credit card offers and verify their eligibility requirements as per their credit score, income, and other eligibility criteria. Instead of sending multiple applications, one can be more thorough with their research and apply only for one or two plans that they find suitable.

 Avoid Cancelling or Changing Credit Cards 

If you have been paying your bills on time, a card issuer may ask you to cancel your old credit card and offer attractive offers. Similarly, you may wish to cancel or change your old credit card for any other reason. This, however, can be avoided in order to improve your credit score.

The age of your credit lines is an oft-ignored factor regarding the calculation of your credit score. When you have an old credit card that is managed well, you actually showcase your ability to manage your finances for a long time without many issues. 

When you cancel an old credit card, however, the boost that it could give to your score also ends. Thus, you should first examine the reasons for cancelling your card and discuss other options with your bank. It is possible, for instance, that you may not want to pay a high annual fee; here, the bank can shift you to a card with a lower fee.

How Do You Check Credit Scores?

You can quickly check your credit score for free with Policybazaar UAE. For this, you can simply visit the ‘credit score’ page under the ‘credit cards’ category. 

Alternatively, you can check your credit score on the AI Etihad Credit Bureau website. Here, you can get a credit score as well as a credit report albeit with an applicable fee. 

The price list for the same is as follows:


Online Price (Inclusive of VAT 5%)

Offline Price (Inclusive of VAT 5%)


AED 10.5

AED 21


AED 10.5

AED 21


AED 10.5

AED 21

Key Takeaways

The credit score plays a vital role with respect to the chances of you getting your desired credit card or loan in the UAE. A 508 credit score is a low credit score, meaning that you will find it challenging to obtain a loan or any credit in the UAE. 

The key idea of maintaining a credit score is that lending institutions get a fair idea of the risk taken on by approving an applicant’s credit card or loan request. As your credit score tends to improve with financially responsible decisions, you will be able to avail yourself of more benefits and privileges with your chosen financial product! 

More From Credit Score