Credit Score in the UAE: What It Is, Why It Matters, and How to Improve It

Your credit score in the UAE plays a critical role in your financial life. Whether you’re applying for a personal loan, credit card, car loan, or even a mortgage, lenders assess your creditworthiness before approving your request.

In this guide, we explain what a UAE credit score is, how it’s calculated, why it matters, and practical steps to improve it.

What Is a Credit Score in the UAE?

A credit score in the UAE is a three-digit number ranging from 300 to 900 that reflects your creditworthiness. The higher your score, the lower the risk you represent to lenders.

Credit scores in the UAE are issued by the Al Etihad Credit Bureau (AECB), the federal entity responsible for collecting and maintaining credit information across the country.

Your score is generated based on your credit report, which includes:

• Credit cards
• Personal loans
• Auto loans
• Mortgages
• Overdraft facilities
• Payment history
• Bounced cheques
• Court judgments (if any)
• Telecom and certain utility payment records (where reported)

What Is Considered a Good Credit Score in the UAE?

While each bank has its own approval criteria, market practice generally interprets scores as:

• 300–619: Low / High Risk
• 620–679: Fair
• 680–739: Good
• 740–799: Very Good
• 800–900: Excellent

A score above 700 is typically viewed positively by most lenders in the UAE.

However, final approval decisions also depend on factors such as income level, existing liabilities, debt burden ratio (DBR), and each bank’s internal credit policy.

Why Your UAE Credit Score Matters

Your credit score can directly impact:

1. Loan Approvals

Banks use your credit score as one of the key factors in deciding whether to approve or decline your application.

2. Interest Rates

A higher score may help you qualify for more competitive interest rates, potentially saving significant amounts over the life of a loan.

3. Credit Limits

Stronger credit profiles may receive higher credit card or loan limits, subject to bank policy and income eligibility.

4. Faster Processing

Applications supported by a strong credit history often move more smoothly through the underwriting process.

How Is Your Credit Score Calculated?

The exact scoring model used by AECB is proprietary. However, key contributing factors include:

1. Payment History (Most Important)

• Making payments on time supports your score.
• Late or missed payments reduce it.
• Bounced cheques negatively affect your record.

2. Credit Utilization

This refers to how much of your available credit you are using.

Example:
If your credit limit is AED 50,000 and you’ve used AED 45,000, your utilization is 90%, which may negatively impact your score.

As a general best practice, keeping your credit utilization below 30–40% is considered healthier for your credit profile.

3. Length of Credit History

A longer, well-managed credit history can positively influence your score.

4. Number of Credit Applications

Submitting multiple credit applications within a short period may lower your score, as it can signal potential financial stress.

5. Credit Mix

Responsibly managing different types of credit facilities may contribute positively to your overall profile.

How to Check Your Credit Score in the UAE

You can obtain your credit report and score directly from the Al Etihad Credit Bureau through:

• The AECB website
• The AECB mobile application
• Selected partner bank channels

A fee typically applies for accessing your credit report and score. Prices may vary and are subject to change.

Regularly checking your credit score can help you:

• Identify and correct errors
• Track improvements over time
• Prepare before applying for new financing