Need a loan? How to check and improve your credit score

improve your credit score

UAE: Need a Loan? How to Check and Improve Your Credit Score

When planning to apply for a loan or considering getting another credit card, understanding your credit score is crucial. Your credit score and report provide insight into how banks might perceive you as a customer. A higher credit score significantly increases the likelihood of loan approval, potentially leading to lower interest rates and faster processing times. Here’s everything you need to know about your credit score, including how it's calculated, how to check it, and ways to improve it.

### How Credit Score is Calculated

In the UAE, the Al Etihad Credit Bureau (AECB) is responsible for generating credit reports. The AECB collects your credit information by considering several factors:

-  Payment History : Your record of timely or late payments.
-   Credit Utilization: How you use your available credit limit.
-  Number of Credit Cards : The total number of credit cards you hold.
-  Bounced Cheques : The number of cheques you have issued that have bounced.

  Cost of Generating Credit Report

To check your credit score, you have the option of getting just the credit score or obtaining a comprehensive credit report that includes the score. The costs are as follows:

- Credit Score : Dh10.50
- Credit Report with Score : Dh84.50

How to Check Your Credit Score or Get a Credit Report

Checking your credit score and obtaining your credit report online is a straightforward process. Follow these steps:

1. Visit the Al Etihad Credit Bureau Website : Ensure the blue-colored tab highlights 'For individuals'.
2. Click on 'Get a Credit Score Now : This will direct you to a login page where you can log in using a previously registered ID or through UAE Pass.
3. Login and Select Option: After logging in, choose between getting just your credit score or a full credit report with the score.
4.  Purchase and Payment : Click on 'Buy now' and complete the payment to generate the report.

How to Improve Your Credit Score

A good credit score typically ranges between 400 and 700, with scores above 700 considered excellent. If your score falls below 400, there are several ways to improve it:

- Timely Payments : Always make payments on or before the due date.
- Avoid Bouncing Cheques : Ensure sufficient funds to avoid cheque bounces.
- Reduce Credit Cards and Loans : Minimize the number of credit cards and loans you hold.
- Lower Outstanding Balances : Reduce your outstanding balances and limit the utilization of your credit cards.

Reporting Errors and Raising Complaints

If you notice any discrepancies in your credit report, you can raise a complaint with the Al Etihad Credit Bureau. The AECB receives credit information from banks, finance companies, and telecom operators, so it will coordinate with the relevant provider to address your concern.

To report an error, fill out the Data Correction Request form available on the AECB website. You will need to upload your Emirates ID, the credit report, and any additional supporting documents.

Conclusion

Understanding and managing your credit score is essential for anyone planning to apply for loans or credit cards in the UAE. By regularly checking your credit report, making timely payments, reducing debts, and avoiding bounced cheques, you can maintain or improve your credit score. Should you encounter any errors in your report, the AECB provides a clear process for raising complaints and ensuring your credit information is accurate.