In the UAE, your credit score is the roadmap for your financial well-being. Whether you’re applying for a home loan, financing a new car, or setting up a business, you’ll find that approval lies in your credit report. Lenders look at your credit score to gauge how trustworthy you are when it comes to paying back money you’ve borrowed. Even employers will check it to see if you’re in good standing financially as a pointer to your responsibility and reliability.
However, many UAE nationals and expats don’t realize how vital credit can be for future endeavours. At Remitly, we’re all about fostering financial health, and in our latest guide, we’ll help you navigate the credit check process. Discover how to check your credit in the UAE, along with actionable steps to improve, build up, and protect your financial credibility.
Understanding UAE credit reports: what’s inside?
Have you ever wondered how banks and other lenders decide whether or not to extend credit? It all starts with your credit report.
What is a credit report?
A credit report is a detailed summary of your history of repaying bills and debt. It looks at different sources—such as your bank account information or public records —to assess how well you manage your financial obligations.
Every loan, credit card, and even bounced cheque plays a role in your report, and ultimately, your credit score.
Credit report vs. credit score: what’s the difference?
When looking at your credit report, you’ll see a breakdown of your overall financial behavior. But your credit score is a number that summarises this behavior, demonstrating to lenders the risk of doing business with you.
Scores are calculated through analysing your credit behavior, including factors such as:
- The length of your credit history
- How much you owe
- Whether you make payments on time
- The types of credit you use
- How often you apply for new credit
Weighing these elements ensures fair and balanced scoring, giving lenders a clear picture of your creditworthiness. Every country places varying importance on each, resulting in different scoring systems. In the UAE, for example, payment history is the primary consideration, closely followed by your credit utilisation.
If you regularly apply for credit or have a high balance on your credit card, this can negatively affect your score. Low scores are often a result of numerous negative marks on your report.
However, your score will be higher if the report is pristine, with no record of defaults and a healthy debt-to-payment ratio.
What information is in a credit report?
Understanding what’s in the report can help you either maintain your current score or build it up.
Your UAE credit report includes the following data:
- Personal information: Your full name, Emirates ID, contact details, and address history.
- Credit accounts: All active and closed credit cards, loans, and other credit facilities.
- Payment history: On-time and late payments, payment patterns, defaults, and delinquencies.
- Outstanding balances: Current debts and available limits.
- Credit enquiries: Records of when banks or institutions checked your credit.
- Legal or default entries: Any bounced cheques, court judgments, or bankruptcies.
With these factors, regulatory bodies can generate a credit score that lenders and employers will look at when evaluating your financial capabilities.
If your current credit score is low, consider reviewing your report thoroughly, either alone or with the help of a qualified professional. Checking the details can help you notice what’s negatively impacting your score or if any mistakes need to be fixed.
What negative marks on credit reports mean
Every bounced cheque or late payment is considered a mark against your record. Credit bureaus check with all agencies, institutions, and banks in the UAE about your debt and monthly bills so that they can put together an accurate report of your financial history. With this information, they can create credit reports with concrete information going back three years.
However, negative marks, such as defaults and delinquencies, can stay on your report for up to five years. So, if you’re prone to paying your phone or utility bills past their due date, even by a day, this will reflect negatively on your credit score.
Changing habits that affect your score will be the number one way to get your credit to a higher rating.
Official ways to check your credit in the UAE
How you check your credit score is as important as the score itself. In the UAE, almost everyone uses the Al Etihad Credit Bureau, as it’s often the most comprehensive source, but there are other options you can consider, too.
Al Etihad Credit Bureau (AECB)
The AECB is the official credit report agency for both businesses and individuals throughout the UAE. Government-run and trusted by banks, you can get your credit report and score quickly and safely through this agency.
You can check your score using the AECB website or app. All you need to register is to provide your name, email address, Emirates ID, or UAE Pass. Some might be wary about providing all these details, but don’t worry: AECB prides itself on keeping personal or proprietary data safe. It’s run by the federal government, supervised by the UAE Central Bank, and subject to local cyber protection laws to ensure safety and security for all parties.
Once you’ve supplied all the necessary information, you’ll be able to access your report and even receive tips on how to improve your score. Each credit report costs 84 AED, while credit scores are 10.50 AED. After payment is received, your requested document will be generated in no time. For example, credit reports can be ready in up to eight hours.
Emirates NBD: For easy access to scores
UAE banks don’t offer AECB data directly on their sites. However, Emirates NBD, the government-owned national bank, gives customers instant access to their credit score through Liv, its digital bank geared toward millennials. While you won’t get the full report, this product provides a clear idea of where you stand financially.
Emirates NBD is currently the first and only bank to offer this service in the region. But it may pave the way for other Emirati financial institutions to make credit scores more easily accessible.
Nova Credit: Designed for expats
As an expat, you can now transfer your credit history from your home country to the UAE. This unique service is supported through a partnership between the AECB and Nova Credit, the biggest cross-border credit bureau.
Through this facility, you can leverage past credit history when applying for financial services once you’ve arrived in the Emirates. AECB-trusted and accredited organisations like Nova Credit can help you localise your credit score so you’re not starting from scratch.
How to read your credit report
The AECB credit score is a three-digit number that predicts your credit management skills. Scores typically range from 300 to 900, but what does each tier mean?
| Credit Score Range | Star Rating | Category |
| 746 to 900 | 5 | Very High |
| 711 to 745 | 4 | High |
| 651 to 710 | 3 | Medium |
| 541 to 650 | 2 | Low |
| 300 to 540 | 1 | Very Low |
It’s good to remember that no score is final; yours can change based on your payments or new loans taken out. If you have a low score, you can improve it and create a healthier financial standing for yourself with enough time and consistency.
Common credit report issues and how to fix them
Even official systems can have glitches. Errors in your report, like duplicate accounts or incorrect late payments, can unfairly lower your credit score.
Checking your score twice a year will ensure that these types of errors don’t remain in the system and affect your credit for too long.
Some common errors might include:
- An account that has been closed, but the credit report is still open
- An account that has been inaccurately reported as “in default”
- Identity errors, such as the spelling of your full name or address
If you spot any mistakes, AECB allows you to submit corrections for any reports you’ve purchased within the last thirty days for free. But you’ll need to provide the necessary documentation to prove the inaccuracies, such as:
- Confirmation of account closures
- Receipts for payments that were paid on time
- The correct spelling of your name
- Your billing address.
AECB usually follows up with an email containing the updated data within seven days. However, if more than ten days pass and you haven’t received this confirmation, it’s a good idea to contact them to check for any issues or discrepancies with your corrections.
Practical tips to improve your UAE credit score
Rebuilding your credit score takes time, but consistent effort will help you turn things around. Use these strategies to undo the damage of negative marks from the past and improve your financial health.
- Set a budget: Unfortunately, many people fail to budget when they get paid, so there isn’t enough money to go around when the bills come in and rent is due. But breaking down your expenses ensures you can see exactly where your funds are going and keep up with your responsibilities.
- Pay every bill on time: Payment history is one of the most essential components of your score. Missing even one loan installment can cause your score to drop. So, use a monthly budget planner to pay every bill on time. Also, consider setting up autopayments so you don’t miss any deadlines.
- Keep credit utilisation low and limit credit increase requests: Say your credit limit is 10,000 AED, and you’re consistently at the credit limit every month. Even if you pay on time and in full, it can still signal you as a risk and negatively affect your score. Requests for credit increases on top of high utilisation can also negatively impact your report, so keep both to a minimum.
- Limit new credit card applications: New credit applications will require enquiries on your credit, but too many can lower your score.
- Monitor your credit: Your credit score won’t change overnight, so monitor it continuously and check in twice a year to see how you’re doing. Knowing which improvements to make can help you build up your score further.
Don’t wait: take control of your financial future
Credit reports can often be the key to your financial future. If your credit is currently low, building it up will open opportunities that might otherwise be out of reach. If your score is already high, maintaining it will help ensure you’re approved for future loans and homes, whether you’re a citizen or an expat planning to settle long-term.
Credit reports can also be invaluable if you decide you want to build a business in the UAE.
There are many ways credit reports play a vital role in your life, but these instruments are often forgotten when dealing with everyday matters. By applying some practical tips, you can boost your score and give yourself peace of mind.
FAQs
Can you check your credit for free in the UAE?
No. Applying for a credit report through AECB usually involves payments of at least 84 AED. You also have the option to purchase your credit score for only 10.50 AED.
Does checking my report affect my score?
Checking your own report doesn’t affect your score. However, enquiries by other institutions can negatively affect your score if they’re made too often.
How often should I check my credit?
Since your credit score won’t change overnight, checking it twice a year is a good way to monitor your progress and maintain any improvements.
Can expats access AECB credit reports?
Yes. Just like nationals, expats living in the UAE have the ability to build credit history and access reports from AECB.