638 Credit Score – Here’s What You Need to Know

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As one may be aware, a credit score is a three-digit figure provided by Al Etihad Credit Bureau that indicates your creditworthiness and the likelihood of making mortgage and credit card bills on time. These scores, lying between 300 and 900, can help lending institutions and banks figure out whether to approve your application for a loan or credit card in the UAE.

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A 638 credit score, falling under the lower score category, implies a higher chance of your loan or credit card application getting rejected. But does that mean that you cannot apply for the same at all with your 638 credit score? The following sections in the article will help you get the answer to these questions and other key aspects of such a credit score. 

What Does 638 Credit Score Mean?

Tabled below are the credit scores in the UAE as per their category and star equivalents:

Range of Credit Score


Star Equivalent


Very low












Very High


If your credit score is between 638, lying between 541 and 650, it will be considered low and have a 2-star rating. Such a credit score indicates that you face difficulty in managing your finances. This could include late EMI payments, delays in paying your credit card bills, utilisation of your credit card to the maximum limit, multiple credit card applications in a short span, and more - all such issues reflect on your aecb credit report in the UAE.

It must be noted that a 638 credit score can also show a lack of credit history. It could be more challenging for you to get a new credit card or finance application approved if your credit history shows evidence of previous credit issues like late or cancelled payments, or even little to no credit at all. 

What 638 Credit Score Can Get You?

It is essential to understand that even if your credit score is as low as 638, it does not always mean that your loan or credit card request will be rejected straight away. While you may be charged higher fees, you can still have several options regarding such financial products in the UAE. Let’s have a look at what a 638 credit score can bring you in terms of credit cards, loans, insurance, and more.

Credit Cards for 638 Credit Score

You can expect several difficulties in getting a credit card with a 638 credit score. However, even with such a score, you can always apply for secured credit cards in the UAE which could be your best alternative. Keep in mind that you will need to deposit a security amount when using a secured card, with your credit limit generally being determined by this security deposit. 

Secured cards are more easily accessible to those with a 638 credit score as they are less risky for credit card issuers. Moreover, such credit cards can be beneficial for individuals with low credit scores. If the lender informs the credit bureau about your timely payments and other credit activities, a secured card can help you increase your credit score.

Personal Loan for 638 Credit Score

personal loan options for individuals with a 638 credit score are fairly limited, as you may not be able to obtain your ideal personal loan plan with the lowest rates of interest with such a credit score. With a credit score of 638, you would instead get a personal loan at high rates of interest and additional costs (like origination charges and more). Consequently, an individual with the mentioned credit score could find a personal loan undesirable, especially if they wish to use it to pay off the high-interest credit card debt.

Home Loans for 638 Credit Score

While the general credit score requirements for home loans vary, one may find it quite difficult to get approval with a 638 credit score. The only option in such cases would be the mortgage offers with higher rates of interest, which could end up costing you a lot of money. It is crucial to think about the long-term financial effects of such a costly loan, and it can be worthwhile to wait and improve your credit score before applying again.

Auto Loans for 638 Credit Score

It could be challenging to obtain a car loan if you have a credit score of 638. And even if you get one plan for yourself, the chances are that it would be provided at significantly higher interest rates. Such excessive interest rates, applicable for individuals with a low credit score, can make the loan highly expensive even with the finest auto loans. 

You would be able to receive better rates with car loans if you take sufficient time to improve your credit score first. In case your requirement is urgent, you can consider getting a co-signer if you know someone with a high credit score and who is ready to share the burden of a car loan with you.

Insurance Plans for 638 Credit Score

Even though credit score has no direct bearing on insurance plans, insurance providers nonetheless use it to calculate the premium you will have to pay. With a low credit score of 638, you can expect greater premiums.

Tips to Improve Your 638 Credit Score

To improve your credit score from 638 and avail of the required loans or credit cards at manageable rates, you can consider following the measures discussed below –

  • Opt for a secured credit card
  • Pay all credit card and utility bills on time
  • Avoid using your credit card to the maximum capacity
  • Pay your loan instalments on time
  • Avoid applying for multiple loans or credit cards at a time 

How to Check Your Credit Score for Free?

Policybazaar UAE has collaborated with the AECB to enable UAE nationals and residents to check their credit scores for free. With Policybazaar UAE obtaining the score directly from the AECB and bearing the costs, you can check your credit score for free when applying for a credit card or loan from our website. 

Key Takeaway

A low credit score, such as 638, indicates a higher chance of your loan or credit card request getting denied. This is because such a low credit score shows that you find it difficult to manage your debts and finances, and have a record of paying your EMIs late or delaying the settlement of your credit card bill. 

It is crucial to realise that a credit score of 638 does not directly lead to rejection of loan or credit card applications – one may still get their desired product albeit at higher interest rates and fees. All this could be avoided by improving your credit score, which can be done by paying all your bills on time and managing your finances in a responsible manner.

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