716 Credit Score – Is it Good or Bad?

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Analysing your credit score is crucial before you set out to apply for credit facilities like credit cards and loans in the UAE. A good or a bad credit score can significantly impact the important aspects of your credit facilities like approvals, interest rates, loan amounts, and so forth

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This piece will discuss what credit facilities are in store for borrowers with a 716 credit score and whether it is considered a good credit score in the emirates. 

Is 716 a Good Credit Score?

Credit Score (Range)

Category

Star Equivalent

300-540

Very low

1

541-650

Low

2

651-710

Medium

3

711-745

High

4

746-900

Very High

5

As per the AECB guidelines, a 716 credit score falls into the “high” credit score category, with the ‘high’ category credit scores being given a 4-star rating. Individuals with a 716 credit score are viewed as creditworthy candidates by the bank, with such a credit score representing that the individual in question has managed their personal finances as well as credit tools flawlessly till date. Banks almost instantly offer most types of credit facilities to such customers and at the minimum possible interest rates as well. 

What Can a 716 Credit Score Get You?

The availability of financial products as well as the rates at which they are approved can differ even with a particular score (as per the product). Discussed below are the prospects of individuals with a credit score of 716 with respect to loans, credit cards, and more.

Personal Loans with a 716 Credit Score:

Having a 716 credit score can be highly helpful if you plan to take a personal loan in the UAE. Personal loan rates are highly negotiable as per the profile of the customer. With 716 being a 4-star high category credit score, you will be able to negotiate interest rates for your personal loan and bring them down to the lowest possible for the category. 

Car Loans with 716 Credit Score:

Similar to personal loans, a 716 credit score can help you get low interest rates for car loans as well. While auto loan interest rates cannot be negotiated to a great extent, banks consider credibility when deciding the rates. A high 4-star credit score can positively influence the provider’s decision. 

Credit Cards with 716 Credit Score:

 Getting any credit card that you are eligible for in the UAE is easy with a 716 credit score. Credit scores are one of the several eligibility criteria credit cards come with. As long you qualify for all other criteria, your 716 credit score can help you secure any credit card that you desire. 

Home Loans with 716 Credit Score:
Credibility is of high importance for mortgage and property loans - having a low or even medium credit score can often lead to denied home loan applications. A high credit score is highly preferred by banks when handing out approvals for home loans. With a 716 credit score, thus, you can get the best home loan deals easily at manageable rates. 

Insurance Premiums and 716 Credit Score:

Credit score generally does not play a primary role in deciding the insurance premium of the plan you purchase. However, credit scores can still influence it.

A very high or very low credit score can have a lasting impact on insurance premiums. Just like loan instalments, the insurance premium is to be paid at regular intervals as well. As a customer with good credibility is likely to make all premium payments on time, a 716 credit score can help you score lower premium rates. 

How to Get a 716 Credit Score?

Increasing your credit score to 716 can take a while depending on your current credit score. While the time required for improving the score keeps increasing as the score goes lower, one can still follow a few tips given below to get a 716 credit score over time:

Irrespective of the type of bill that you are liable to pay, always make the payment before the deadline. The AECB studies all different types of bill payments while calculating your credit score, with all bills generated in your name taken into account. Consequently, it is advisable to have credit card bills, loan instalments, utility bills, and others paid on time.

Choose your credit cards wisely and avoid sending out applications in excess at a time. You should send your application only after conducting thorough research and confirming your eligibility. 

Once you have your card, stick with it for as long as you can. Frequently changing credit accounts does not bode well for your credit score. 

Try to use both revolving and instalment style credit, as diversifying your credit portfolio can contribute to getting a 716 credit score. It shows that you can skilfully manage different kinds of credits and handle your finances well. However, keep in mind that opening too many credit accounts at a time can negatively impact your credit score. 

Stay consistent with the timely payments and other tips mentioned above, as being consistent with all the measures is the key to bringing any significant change in your credit score. 

If your credit score falls into the low or very low category, it may take several months to bump it up. Thus, patience is of utmost importance when it comes to getting a 716 credit score. 

How to Check Credit Score for Free in UAE 

The most commonly-used platform to check credit scores in the UAE is the AECB website or mobile application. A small fee is applicable to check your credit score for both of these platforms. You can, however, check your AECB credit score for free when you apply for a credit card or personal loan from policybazaar.ae, our official website. We take your credit scores from the AECB itself and bear the fee for checking them, which ensures that authentic scores are available to users for free. 

Key Takeaways

Getting credit tools and facilities is easy in the UAE with a 716 credit score at your side. Paying your bills on time, using credit smartly, and diversifying your credit portfolio can help you increase your credit score significantly in the UAE. 

Keep in mind that patience and consistency are key to increasing your credit score and bringing it into the ‘high’ or ‘very high’ category. If your credit score is already 716, you can follow the same tips to increase it further and get even better credit facilities in the UAE.

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