What does a 680 credit score mean?

Given the popularity of credit tools like loans and credit cards, it has become essential to Check your credit score and maintain it at a certain level. Good credit scores in UAE are essential if you wish to get your desired financial products at favourable interest rates. 

Let’s understand where a 680 credit score will fall on this scale and what it can get you in terms of credit. 

Is 680 Credit Score Good or Bad?

As per the categorical division provided by the Al Etihad Credit Bureau, a 680 credit score is considered a medium-strength credit score or a good credit score. Most banks accept medium-strength credit scores when providing their credit products. 

AECB gives a 3-star rating to medium credit scores. Being only a medium-level score, a 680 credit score represents that while you are generally capable of managing your finances well, occasional lapses may happen with you. These errors can occur in the form of delayed utility bill payments or overdue credit card bills. 

Getting approved for loans and credit cards with a 680 credit score is not difficult. However, you may not be able to get as low interest rates as you expect. 

What can a 680 Credit Score Get You?

Credit Cards for 680 Credit Score:

There are three major types of credit cards available in the UAE – secured credit cards, unsecured credit cards, and special benefits credit cards. A candidate with a 680 credit score can easily get approved for all three kinds of credit cards. However, interest rates may be a bit higher in the case of unsecured and special benefit cards. Getting a secured card, however, will be easier here. Moreover, it will come with low interest rates and may also help you increase your credit score as well. 

Personal Loans for 680 Credit Score:

680 credit score personal loans are among the most diverse and dynamic credit tools available in the UAE. Getting a 680 credit score personal loan is mostly a straightforward process as this score is considered good for this type of loan. You may, however, get a higher interest rate compared to other applicants with a high credit score. 

Home Loans for 680 Credit Score:

While getting a 680 credit score mortgage in the UAE is possible, it will happen with its own set of challenges. As home loans are the longest available loans, extra precaution is taken when it comes to determining the credibility of the applicant. 

To cover the higher level of risk you present as a borrower, you may get higher interest rates although you won’t face any major challenges in getting approval for a 680 credit score mortgage. 

680 Credit Score Auto Loans:

Car loans are unsecured loans that are fairly easy to get, especially if you have a medium-level or higher credit score. Getting a 680 credit score auto loan is also a good way to increase your score significantly. The interest rate that you will be getting will be decent (not too low or high). Approvals will also be given if you qualify for the other basic eligibility criteria of the loan.  

Insurance Plans with 680 Credit Score:

Unlike the previous products, the credit score is not a primarily influential factor when it comes to insurance premium rates. However, as you will be liable to pay your premiums, insurance providers consider your creditworthiness nevertheless. 

A 680 credit score can help you get decent premium rates for your insurance plans in the UAE. Moreover, if you improve score in UAE, the rates may further go down in the future.

Tips to Improve Your Credit Score from 680

• Stay On Top of Bill Payments: Whether it is your credit card bill or the monthly utility bill, make sure to always pay all your dues in time. It should be kept in mind that defaulting on or missing even a single payment can lead to a dip in your credit score. 
• Stick with Credit Cards for Long: It is advisable to avoid switching credit cards too often. Choose your cards carefully after proper comparison and stick with them for as long as possible. Changing cards frequently or keeping too many credit card accounts open will have a negative impact on your 680 credit score. 
• Maintain Healthy Credit Limit Utilisation: You should use your credit card carefully and only utilise your credit limit up to a healthy level. As per experts, it is recommended to make use of only 15% to 30% of your credit limit. You can slightly increase your utilisation if you have an important expense coming up. However, make sure that these occurrences are occasional at best. 
• Stay Consistent: Practising healthy credit utilisation and timely bill repayment consistently is an easy way to attain significant improvement in your 680 credit score. As it takes a significant amount of time for credit scores to change (be it increase or decrease), you should be patient with your practices. 

How to Check Your Credit Score for Free?

Checking your credit score in the UAE comes with a small fee when you use AECB official website for it. However, you can get your scores for free when you apply for a loan or a credit card from the Policybazaar UAE website. 

To help you check your credit score accurately and conveniently, we bear the credit score fee for you and use the AECB official platform to make the calculation. 

In a Nutshell

A 680 credit score can be considered decent as per UAE standards - this means that you can easily get any credit card or loan that your desire as long as you fulfil other eligibility requirements. However, getting your desired interest rate will not be so easy with a 680 credit score with respect to personal loans or credit cards. Thus, if you have such a credit score in the UAE, you should consider practising the tips mentioned in the article to propel your score into the ‘high’ or ‘very high’ category.