Everything you need to know about Credit Score in UAE

By PolicyBazaar
  | Published: 02 April 2020 | Last Updated On: 29 December 2020

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A few years ago, the government of UAE announced the introduction of credit rating in this jurisdiction. Before this, there was no official credit report of residents which makes it difficult for financial institutions and banks to assess the creditworthiness of an individual in UAE. If you are an expat residing in the UAE you might be familiar with the concept of credit rating. 

The primary objective of credit rating in the UAE is to provide adequate information about the creditworthiness of an individual. When an individual applies for a personal loan, home  loan or a credit card, the bank uses this information to decide whether the loan application should be accepted or not.

The concept of credit rating was introduced in 2014, which since then has been a standard all across the UAE. UAE residents should lay emphasis on managing their finances to ensure that their credit rating is not affected. 

If you’re wondering how credit rating affects the acceptance of a loan application, how is credit rating calculated? Don’t worry! We are here to help. We will help you to get a firm understanding of credit rating and its importance in the UAE, so stay tuned. 

What is Credit Rating/ Score?

A credit score in UAE or rating is a numeric figure that evaluates and assesses the creditworthiness of a borrower in a given jurisdiction. Financial institutions use it to analyze the probability that the borrower will repay the outstanding debt. The credit score in UAE typically varies from 300 to 850 based on the credit history of an individual. Higher the credit score, the more financially trustworthy the individual would be.

Consumers can maintain a healthy credit score by making timely repayments of their outstanding debts and keeping the amount of their outstanding as low as possible. A credit score in UAE is an extremely crucial detrimental factor taken into consideration by financial institutions while approving loan application requests.

Although different financial institutions and creditors have a distinct criterion to classify the credit score of an individual in the UAE. Here’s a quick rundown depicting average score ranges.


 Rating Value


800 - 850

Very Good

740 - 799


670 - 739


580 - 669


300 - 579

Factors Affecting Credit Score

Financial Institutions consider the following five factors while evaluating the credit score in UAE. To maintain a healthy credit score individuals should focus on these factors. 

Payment History

Payment history approximately accounts for a 35% credit score and depicts the worthiness and punctuality of a borrower in making timely repayments of the outstanding debts. 

Total Amount Owed

The total amount owed by borrowers account for 30% and mainly takes into consideration the percentage of the credit that has been made available to a borrower, which is commonly called as credit utilization of an individual. 

Length of Credit History

Length of credit history accounts for about 15%. Longer credit histories are considered less risky as the financial institution has more data to assess and analyze the payment history of the borrower in the UAE. 

Types of Credit

Types of credit approximately account for 10% of the total credit score in UAE and are used to identify the types of credit that an individual has opted for. If an individual has opted for a car loan, credit card, and mortgage they are more prone to disturbances in credit score in comparison to those who have single credit. 

New Credit

New credits in your financial portfolio account for 10% of the credit score in UAE. New credit basically includes the number of new accounts that have opened by an individual, which results in a credit inquiry when the latest account was opened and activated for usage. 

AECB Credit Score in UAE

The official authority responsible for running a credit score in UAE is the Al Etihad Credit Bureau (AECB). It was established by the government of the UAE in the year 2010. The major responsibility of AECB is to gather credit-related information from financial and non- financial organizations in the UAE. Once the information is gathered the data analysts analyze the reports and come with accurate credit ratings that depict the creditworthiness of an individual in UAE.

AECB primarily is dependent on financial institutions for gathering information related to the financial obligations of an individual in the UAE. The exact number of financial obligations along with the total outstanding loan amount would be listed on the report sent by your bank to AECB. Your expenditure and spending patterns are also analyzed which helps AECB to obtain valuable insight into your financial portfolio. 

Apart from gathering information from financial institutions AECB also collects information from non-financial institutions like internet providers and telecom providers. If you’ve been missing out on your broadband bill it will be mentioned in your report as well. 

How to Check Credit Score in UAE?

Checking your credit score is a very simple process. Individuals willing to see their credit score can visit the AECB office in Dubai or Abu Dhabi and provide their documents i.e. Valid Emirates ID, passport and pay the required fee. Once you are done with submitting your documents along with fee AECB will pull your details and notify you about your credit score in UAE. The fee for credit score evaluation is AED 150 plus VAT. Getting your credit score assessed helps you to have a rough idea about your creditworthiness. Furthermore, it helps to identify your financial problems and the scope of effectively countering them. 

Improving Bad Credit Score in UAE

If you are having a bad credit score there are multiple steps that you can take in order to improve your credit score in UAE. The first and the most important tip to improve the credit rating of an individual is to identify the issues that have led to a reduction in your credit score. Once you are done with identifying the reason behind your dropping credit score you need to look for ways to keep your repayments on top and ensure that all your financial obligations are met timely. 


Your credit score in UAE is a numeric figure that can cost you a lot or help you to save a lot. A good credit score in UAE allows investors to get low rates of interest that will help you to save loads of money. Maintaining a healthy credit score not only helps you to save money in the form of interest but it also diversifies the access to credit in the future if you need it.