What Is the Lowest Credit Score in UAE

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All of us have some sort of relationship with the financial world, whether we are bankers, doctors, artists, or government workers. We all encounter several banking-specific terms because we are involved in the banking and finance industries. The credit score is one such important concept.

Credit scores are numerical indicators that help lenders, banks and other financial institutions determine whether a borrower can be relied upon to repay the loan (and on time). Given its importance, it is safe to state that your credit score has the power to make or break your chances of obtaining credit products with low-interest rates.

If you are wondering about the lowest possible credit score in the UAE, please read through the following sections. 

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How is credit score calculated in the UAE?

AECB Credit scores are calculated by computer systems referred to as scoring models. Using scoring algorithms, it is possible to predict the likelihood that a borrower will be 90 days late past the due date on a payment during the next 24 months. 

In the UAE, a person's credit rating is determined by the AECB or al etihad credit bureau. The AECB acquires data from various organizations pertaining to the borrower and sends a consolidated credit report based on the available information.

The credit score, which is displayed as a three-digit figure, falls between the ranges of 300 to 900. A high credit score indicates that you are trustworthy when it comes to repaying loans. On the other hand, a very low credit score shows that you struggle to pay back loans as well as other obligations like phone and energy bills. The lowest credit score is determined on a scale of 300-900. If you are on the higher side of the scale, you are managing your money and loans well. However, if you are stuck at the bottom of the scale, don’t worry. We have all the relevant information and solutions for you in this article.  

Your credit score can be affected in a number of ways. To ensure that your credit score in the UAE does not go below 700, you must be knowledgeable about these aspects. In the UAE, the AECB categorizes credit scores into five main groups:

  • Very low
  • Low
  • Moderate
  • High
  • Very high

The number of stars assigned to each category ranges from 1 to 5, with 1 denoting the lowest star and 5 the highest. 

If you apply for a credit card or a personal loan through our website, you can also get a free AECB credit score check. AECB is the only organization in the UAE responsible for creating credit scores for residents and citizens, unlike other countries where many organizations are involved. 

Factors considered in credit score calculation 

There are quite a few major and minor factors that play an instrumental role in determining your credit score. The factors are outlined below.

  • Credit history: All details about your present and past credit accounts, the credit balance, the duration of each account, and your overall history of payment of financial obligations are taken into consideration.
  • Ongoing debts: Banks check to see if a person already owes money or has a mortgage, as well as their current repayment status. If you have unpaid loans, this will have an adverse impact on your credit score.
  • Loan rejection rate: Your credit score will be impacted if you request a loan repeatedly and have it rejected each time.  Applying for a loan in proportion to your salary is always a smart option.
  • Existing credit cards and bank accounts: Too many credit cards make it difficult to manage them all at once. Similarly, managing multiple bank accounts is difficult and calls into doubt your ability to handle your money. If you want to maintain a healthy credit score, it is wise to stick to a limited number of credit cards and bank accounts.

The following list is a quantitative analysis of the factors. Each factor has a fair share to play in consolidating the final credit score. The list will help you understand the concept better.

  • Your payment history (35%), such as whether you consistently make on-time payments or have had missed or late payments in the past
  • Your credit line's total utilization rate (30%) shows how much of it is currently being used
  • How regularly (15%) do you use credit
  • Your current and previous credit product diversity (10%)
  • How many "hard inquiries," or most recent credit account applications and openings, have you made (10%)

Latest AECB credit score matrix

The lowest credit score in the UAE is determined solely by AECB. As per the latest matrix, 300 to 540 credit points fall in the category of ‘very low’ or the lowest credit score. Let us have a deeper insight into the AECB credit score matrix.

  • A 5-star rating indicates very high credit scores, which are defined as those with 746 or more points
  • The range for excellent credit scores with 4-star ratings is 711–745
  • When it comes to a 3-star rating, credit ratings between 651 to 710 are typically regarded as medium or moderate
  • The fourth category has ratings of 2 stars and falls between 541 and 650
  • Finally, a 1-star grade is given to credit ratings between 300 and 540, which are regarded as extremely low

For a better understanding of the UAE's credit score system, please refer to the following table.

Credit Point


746 and greater values

Very high (5-star)


High (4-star)


Moderate (3-star)


Low (2-star)


Very low (1-star)


In general, lower premiums are available with good credit, whereas you may need to settle for higher premiums with a bad credit score. 

How to improve your credit score?

If you are looking to improve your credit score, we have some simple solutions for you. You cannot increase your credit score overnight. However, if you follow the practices discussed below, you will see an exponential improvement in your credit score. 

Set an auto-debit option

Your credit score will never be permanent. You can raise your credit ratings over time by working on your money management practices. Even if you only pay the minimum amount due, paying your bills on time counts for 35% of your credit score. To prevent late payments, create an automated direct debit.

Reduce monthly utilization rate

You should be mindful of your credit utilization ratio as another significant credit-scoring factor. This considers how much of your overall credit facility you are actually utilizing each month. Reduce your utilization rate by concentrating on paying down your liabilities.

Replenish your credit account 

Add more funds to your credit account so that it has enough money to cover bill repayments as a quick and simple strategy to raise your credit score.

Apply for manageable loans

If you are looking to improve your credit score quickly, it is wise to opt for a smaller loan that you can easily repay. This will bring the credit score back on track. Moreover, the credit history will have a clean record and lenders will consider you a trustworthy borrower.  

Keep track of all your expenses and payments, and make sure you only spend money wisely. You can get help from our financial specialists with credit cards, mortgages, loans, and techniques for improving your credit score. You can always rely on Policybazaar UAE for assistance with managing your finances.

We offer you credit scores free of cost which is otherwise a chargeable service. You can simply create an account with us and apply for a new credit card or a loan. We will proactively maintain a credit report on your behalf. This will help you inspect your current standing and boost your overall credit score. In case you are having the lowest credit score, we have all possible solutions for you to improve it. Trust us today for a better tomorrow. 

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