Importance of Credit Score in the UAE: Everything You Need to Know
In the UAE, your credit score is one of the most crucial numbers that determine your financial credibility. Whether you’re applying for a personal loan, credit card, auto loan, or even a mortgage, banks and financial institutions check your credit score before approving your application.
In this guide, we’ll explain what a credit score is, how it is calculated in the UAE, why it matters, and how you can check and improve your score using the Al Etihad Credit Bureau (AECB).
What is a Credit Score?
A credit score is a three-digit number, usually between 300 and 900, that reflects your creditworthiness. The higher your score, the more likely you are to be approved for loans and credit cards with better interest rates.
In the UAE, the AECB (Al Etihad Credit Bureau) is the official body responsible for issuing credit reports and scores for individuals and companies.
How is the Credit Score Calculated in the UAE?
Your UAE credit score is calculated based on your:
- Payment history: Have you paid your bills, credit cards, and loans on time?
- Outstanding debt: How much debt do you currently have?
- Length of credit history: How long have you used credit products?
- Number of credit inquiries: How often do you apply for new credit?
- Types of credit: Do you have a good mix of loans, credit cards, and other facilities?
The AECB collects this information from banks, finance companies, and telecom providers to generate your score.
Why is Your Credit Score Important?
1️⃣ Loan Approvals:
Banks check your credit score to decide if you qualify for a personal loan, business loan, or mortgage. A low score can lead to rejection.
2️⃣ Interest Rates:
A higher score often means lower interest rates, saving you thousands of dirhams over time.
3️⃣ Credit Cards:
A good score can help you get higher credit limits and better benefits.
4️⃣ Rental Agreements:
Some landlords and real estate companies check your credit score before renting out properties.
5️⃣ Employment:
In some sectors, employers may check your credit report as part of the hiring process.
How to Check Your AECB Credit Score in UAE
It’s very easy to check your credit score online through the Al Etihad Credit Bureau:
👉 Check your AECB Credit Score here
You can download your credit report and score via the AECB website or the AECB mobile app. You’ll need your Emirates ID and registered mobile number to complete the process.
How to Improve Your Credit Score
✅ Pay bills and EMIs on time:
Always pay your credit card bills, loan EMIs, and utility bills on or before the due date.
✅ Limit your credit card usage:
Keep your credit card utilization ratio below 30% of your total limit.
✅ Avoid multiple loan applications:
Too many credit inquiries can lower your score.
✅ Monitor your credit report:
Check your report regularly to ensure there are no errors or fraudulent activities.
✅ Clear outstanding debts:
Try to pay off old debts and avoid accumulating unnecessary liabilities.
Your credit score is an essential financial tool in the UAE. Maintaining a good score can open doors to better financial products, lower interest rates, and higher credibility. Make it a habit to check your score regularly and adopt responsible credit habits to keep it healthy.