- July 30, 2021
- Posted by: admin
- Categories: Blog, Loans
Having a good credit score is a vital phase for the residents of the UAE who want to obtain approval for credit cards and loans along with to procedure of other financial approval. The 3-digit credit score is based on many aspects. Many people want to know how to check credit score in UAE. Here, we collected all the essential information regarding checking the credit score. This information will help you to understand the ways to earn a good credit score and other vital information.
A Credit Score
The credit score is an improved version of a credit report which was presented by AECB in 2018. This is a statistical number that evaluates the credit worthiness of a consumer. Simply, the AECB score is a 3-digit number that predicts how likely a person is to make loan payments and credit cards. The numbers range from 300 to 900. The higher the score, the less risky you have to lend.
Calculation of Credit Score in UAE
The UAE credit score calculation is done by AECB. This is a dynamic number which is calculated by studying the credit history of a person. AECB accesses credit history by different sources like banks and finance institutes. Based on the current report of AECB, the score can alter from time to time. Some aspects that can impact the credit score of a person are:
- Bill Payment History – This determines about 35% of the credit score. Any delayed or missed payment can negatively affect the score.
- Level of Debt – This determines about 30% of the credit score. The total debt you can bear is determined by the credit card balance ratio to the card limit. It means that repeated exhaustion of the whole credit limit impacts your score.
- Age of Credit History – This determines approximately 15% of the credit score. Age is determined by considering the oldest account age and the age of your average account. Older age is a better credit score. It is as the age of older credit means that you have better experience in managing credits.
- Types of Credit Account – This determines about 10% of the credit score. There are two types of credit account – installment loans and revolving account. How better you handle both accounts reflects your experience in credit management.
- Number of Credit Inquiries – This determines about 10% of the credit score. One or more than one inquiry will not impact your credit score, but multiple inquiries over a short time period can lower your score.
The Process to Check Credit Score in UAE
If you are looking to check your credit score in UAE, then you need to download your credit score and credit report from the official website of AECB. The procedure is easy and smooth. You need to log in to the website, then get registered, give necessary details involving your passport number and Emirates ID, make the payment and that is all. You would get the credit report and score by your email within minutes of the request.
Improve The Credit Score in UAE
There are some components that can help you well score on your credit score assessment. A person who handles their credit cards in a good manner has not applied for many loans in a short span of time, pays their payments and bills on time, and tries best to decrease their volatile balances, have a better option to securing a high credit score UAE.
Keep in mind that this is vital not to miss the payments of your credit cards, loan installments, and other payments for any month. If you are not able to make the payment in one go, ensure that you have to pay at least 5% of the payment in one month so that the amount can be decreased and score better. In addition, users of credit cards should note that they do not utilize more than 30% of the credit card limit to avoid a bad score.
Also read, How To Get Loan With Bad Credit Score In UAE