UAE residents should check credit history before applying for a loan

As more banks rely on a customers’ credit history to make decisions on loan applications, it will become extremely important to pay special attention to credit history and reports. Credit scoring, common in mature markets, is a three-digit number assigned to each borrower – in the UAE’s case between 300 and 900 – that represents their creditworthiness and future risk of default. The higher the number, the lower the risk.  

Your credit history combines records of your existing debts, including credit cards, personal, car and home loans and any missed loan/credit card repayments or bounced cheques will appear as well. All your current credit cards whether used or not will also appear on your credit report. These records (of the past two years) are provided by the banks to the Al Etihad Credit Bureau – the UAE’s official credit bureau.

Al Etihad Credit Bureau is a Federal Government organization that collects credit data, information and financial commitments from banks and financial institutions in order to provide accurate Credit Reports to individuals, financial institutions and companies in the UAE as allowed by the laws and regulations of the UAE

There is a law which says one’s debt repayments cannot be more than 50 percent of their income and your credit report will show how much of that 50 percent you have already used up. When you apply for a loan, your bank will go to the credit bureau to get your credit history details before it makes a decision on your application. The bank will have access to the information that all the other banks have provided, for example, the number of credit cards you have and their limit, the number of loans you have and any missed repayments in the past. This will allow the bank to check whether you have reached your debt burden ratio and check your repayment behaviour. Depending on the bank’s credit criteria of who it will lend to, your credit report will help it make a decision on whether to approve your loan and help it fix a rate.

Therefore before applying, it is a good idea to find out what is in your own report. This is possible by purchasing a copy from the Al Etihad Credit Bureau. The report takes 10 to 15 minutes to issue.

How do I get  Credit Score from Al Etihad Credit Bureau

Visit one of our Customer Service Centers and provide an original valid Emirates ID Card, Passport(s) Copy and a valid Email Address. You can pay with credit, debit or e-dirham cards.

How Much does the Credit Score Cost

Credit Report - Individual or Establishment -----------------AED100

Credit Report - Individual or Establishment with Score --AED150

Credit Report - Commercial  ----------------------------------  AED 180

Credit Report - Commercial with Score --------------------- AED 220

Credit Score  --------------------------------------------------------AED 60