What Does a 665 Credit Score Mean?

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A credit score is a three-digit figure indicating the worthiness of an individual's credit. The AECB (Al Etihad Credit Bureau) is a federal organization that provides accurate scores in the United Arab Emirates (UAE). Their scores are widely used as a yardstick to accurately estimate the consumer's ability to repay their debt on the agreed time. An AECB score ranges between 300 to 900. The higher a person scores, the better chance they have to get approval for debts and loans at favorable rates. On the other hand, lower scores show less debt-paying capacity. AECB scores are deployed by financial companies worldwide to predict the applicant's credit history along with various other information.

A credit score is determined by the applicant's behavior with debts, the total level of debts, past repayments, types and number of loan accounts, new application for credit, related risks, current unpaid debts, how much available credit is used, and more. So, most lenders and financial institutions use credit scores to evaluate the debt payment ability or creditworthiness of the consumer. Their primary goal is to ensure repayment of loans on time.

What is a Good Credit Score?

It is essential to have a good credit score to get approval for loans at lower interest rates. It can make or break the deal. A lender considers a good credit score as low credit risk. Good credit makes it easier for financial institutions to approve clients for loan applications, credit card insurance, and other types of financial assistance. As per the AECB rating chart, a good credit score ranges between 300 and 900, with 680 and above being good. So, a credit score is considered good if it's between 680 to 730. Is there anything beyond a good credit score? Yes. An excellent credit score is considered 731 or above. Typically, most applicants have a credit score between the range of 600 and 750. The scoring chart in UAE looks like below.

  • Bad Credit Score: Credit score between 300 and 619.
  • Fair Credit Score: Credit scores between 620 and 679.
  • Good Credit Score: Credit score between 680 and 730.
  • Excellent Credit Score: Credit score between 731 and above.

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There are many benefits of having good credit scores in the UAE.

  • Low-Interest Rate: One of the biggest advantages of having a good credit score is the availability of loans at low interest rates. For instance, having a score of 700 or above gives the benefits of low-interest rates along with an extension on credit limits. 
  • Loan Approval: The income of the applicant in UAE determines the loan limit, but a good credit score ensures the possibility of approval. Irrespective of income, a bad credit score is never helpful. A good credit score is a favourable condition for getting loans approved since it assures the lender of the applicant's capacity to pay. 
  • Employment Opportunity: How can credit score determine employment? A poor score is indicative of a careless lifestyle. It shows the financial institution's lack of financial responsibility. All of this can impair employment opportunities since many employers review their credit scores.

What is a 665 Credit Score?

A credit score of 665 comes between the range of 300 to 900. As per the aecb credit score chart, a 665 credit score comes in the fair-ranging category. As many as 28 to 30 percent of consumers have a fair credit score. This type of score is not bad, but it's not great either. A 665 credit score implies the following:

  • A high annual interest rate on personal loans
  • Non-approval or high interest rate on unsecured loans. 
  • Cards with a high rate of interest.
  • Having difficulty in finding apartments and cell phone connectivity. 

Is 665 a Good Credit Score or Bad?

It's neither. A 665 credit score is neither since the range of good is between 680 to 730, and bad is between 300 to 619. A 665 credit score comes under a fair credit score. It implies that even though lenders may not reject your application, they are not sure either.

Lenders in the UAE do not like such financial risks. They often see them as negative scores. Some can disapprove of the loans, while others can approve. Those who approve loans on fair credit scores have their own stipulations. For instance, they can impose higher fees and rates of interest and costs. A 665 credit score is impacted by various factors. Some of these factors are mentioned below:

  • Length of Credit History: The length of the credit history influences a significant percentage of your credit score. A consumer should always avoid destructive credit activity and behavior.
  • Public Information: There are public records and public reports on bankruptcies. These severely harm the reputation and affect the credit scores. 
  • Total Debt and Credit Mix: Having multiple credit accounts is beneficial for getting a loan approved. However, having a single account with a 665 credit score is unfavorable. Broadening the credit portfolio is necessary. 
  • Credit Utilization Ratio: The credit utilization ratio should be within 30 percent. It is best to keep the ratio within that since it lowers the credit scores. 
  • Payment Behavior: The 665 credit score can be further harmed because of missed or late payments and delinquent accounts. It has a huge impact, so pay your bills on time. 
  • Current Credit Activity: Some companies go with a hard inquiry. In this, they obtain the applicant's credit score to determine the credit approval. So, suppose your current credit activity involves a frequent application for credit cards and new loans. In that case, your credit score takes a hit.

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How To Improve Credit Scores?

Having a 665 credit score in the UAE is fair but can pose difficulty in various ways. This is why one should always strive to get good and excellent credit scores. There are various practical tips and ways to improve AECB credit scores. By following these simple steps, one can benefit immensely.

  • Payment history is the most critical factor in determining the credit score. Have a close eye on payment, and don't miss loan payments. Similarly, make regular credit card payments to increase credit scores. 
  • A high credit utilization rate can surprisingly hurt your credit scores. This happens regardless of whether you pay your bills on time or not. Having a high balance on credit accounts leads to a high credit utilization ratio. 
  • Avoid triggering hard inquiry. Opening new accounts leads to new credit applications. This results in a hard inquiry. 
  • A single delayed bill payment is acceptable for up to 7 days in the credit reports. However, more than that can cause a problem. Bring all your past-due bills to the current.
  • Customize your credit limit to restrict the utilization of the balance. Similarly, set automatic payments so as to avoid delay in the payments. 
  • Opt for loans that have long tenure repayments. The EMI will also be low, and payment will be on time.
Q1. What is AECB?

Ans: AECB is a federal organization offering credit scores in the UAE.

Q2. Can AECB delete or modify my reports?

Ans: AECB does not add, delete, or modify any data in a credit report.

Q3. Where do I get information regarding my credit score?

Ans: All information regarding AECB is on their website and mobile app.

Q4. How is the ACEB credit score calculated?

Ans: They use the globally applied methodology of modern predictive analytics to calculate scores.

Q5. Do AECB credit reports show credit facilities taken outside the UAE?

Ans: If laws permit, AECB will add data obtained from foreign information providers.

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