📝 UAE credit scores: How to check and improve them
- Kacper Duda
- Jan 28
- 3 min read
Continuing our early 2025 series of money fundamentals, this week we turn to credit scores. Read today's newsletter to find out:
How to check your credit score and why it's important
5 ways to improve your credit score
In the news: Changes to how UAE banks finance property purchases
What is your UAE credit score?
Your credit score in the UAE is calculated by the Etihad Credit Bureau and is an assessment of your creditworthiness. The score is calculated based on your financial history and aims to predict how well you can handle new credit obligations.
Your Credit Report contains up to 3 years of historical data on your financial obligations, debts, and salaries. Your financial obligations can be any form of credit, whether a mortgage, loan or even your telecoms accounts.
Your credit score is a number between 300-900. Anything above 680 is considered a good credit score, and if you can hit 731, it's considered excellent.
Why is a good credit score important?
Any financial institutions you approach for any form of credit will first check your credit score. You may think "so what, I don't need any credit". But credit scores cannot be built overnight and you don't know what will happen in the future.
You may want a credit card for amazing travel benefits, or get a new car on finance in the future, so it's important to know and build your credit score starting today.
Where do I check my credit score?
It's easy, you can obtain your credit score from the Etihad Credit Bureau for AED 10.50 or alternatively get a detailed credit report from them for AED 84. The website is very intuitive and offers a wealth of information as well.
5 ways to improve your credit score
So you've checked your credit score and think it needs some work? Here are 5 ways in which you can improve your credit score.
Pay everything on time - Missing payments isn't just about late fees - it's one of the fastest ways to damage your credit score. Banks report every late payment to Etihad Credit Bureau, and these marks can stay on your record for years. Make life easier by setting up automatic payments with your service provider. You'll never have to worry about forgetting a due date, and your credit score will thank you for it.
Watch your credit utilisation - Think of credit utilization as a delicate balance - you want to use your credit cards enough to show you can handle credit, but not so much that it looks like you're depending on them. Keep your total balance below 30% of your credit limit. If your credit limit is AED 10,000, try to keep your balance under AED 3,000. This sweet spot shows lenders you're a responsible borrower.
Maintain your credit history - A longer credit history gives lenders more data to assess your creditworthiness. Keep your oldest credit accounts active (provided there is no ongoing fee!), even if you don't use them much. A small monthly purchase is enough to keep the account alive. Just remember to pay it off each month to avoid any charges.
Keep your income-to-debt ratio healthy - Lenders look closely at how much of your monthly income goes toward debt payments. The lower this ratio, the better your creditworthiness. If you have multiple debts, consider focusing on paying down the ones with the highest interest rates first. This not only helps your credit score but also saves you money on interest payments in the long run.
Monitor your credit report regularly - Regular checks of your Etihad Credit Bureau report aren't just about spotting errors - they help you understand how your financial decisions impact your score. Make it a habit to review your report periodically (we recommend at least once a year). If you spot any inaccuracies, report them immediately to the bureau to prevent them from affecting your creditworthiness.
Remember, improving your credit score is a gradual process that requires consistency and patience. There aren't any shortcuts, but following these guidelines will help you build a strong credit profile over time.
IN THE NEWS - Changes to how UAE banks finance property purchases
If you're looking to purchase a property this year, you'll need deeper pockets. From 1st February, banks will no longer finance the 4% DLD fee or 2% broker fee, which means you will have to come up with the cash for these upfront.
On the positive side, this will reduce the amount of debt you take on and therefore also the monthly repayments. Read more about it on KT.
Disclaimer: Please bear in mind that this email does not constitute financial advice. Any choices you make you are solely responsible for. We always aim to provide highest quality, independent views but do your own research to ensure you’re comfortable with any changes you make to your personal finances.
