🔢 UAE Credit Scores: The hidden bank calculations that can get you rejected

Kacper Duda
Aug 13
5 min read

We’re always on the lookout for the best financial deals in the UAE – but there’s a catch. To take advantage of some of them, you’ll need to be in strong financial shape and have a credit score that lenders like.

The good news? You can prepare in advance. Today, we’ll show you how to strengthen your Etihad Credit Bureau profile so you’re ready when opportunity knocks. Read on to find out:

What are credit scores, and how do you check them
How does the Etihad Credit Bureau calculate them?
The hidden calculations that can cause you to be rejected
In the news: How to get 4 black points removed from your UAE license

A pencil on a sheet of maths calculations.

What are credit scores?

In the UAE, your credit score is a three-digit number (between 300 and 900) that sums up your financial reputation. It’s issued by the Etihad Credit Bureau and is based on your past and present financial behaviour. The higher your score, the more trustworthy you appear to banks and other lenders when it comes to paying back what you borrow.

Think of it as your financial “trust rating.” A strong score can open doors to better credit cards, lower loan interest rates, and higher approval odds for bigger borrowing like mortgages. A weak score can cause rejections - even if you think you can afford the repayments.

How do you check your credit score?

Checking your credit score is very simple, and you have two options.

We included links to the Etihad Credit Bureau websites for each, but you can also use the TAMM app or the AECB CreditReport app (both use UAE Pass to authenticate you):

Score only – a quick snapshot of your number, for AED 10.50.
Full credit report + score – detailed history of your credit facilities, payment patterns, and salary records, for AED 84.

If it’s your first time checking, go for the full report. It’s the only way to see what’s behind your score and spot anything that shouldn’t be there.

What does my credit score mean?

Your UAE credit score ranges from 300 (very poor) to 900 (excellent). It’s essentially a risk rating – the higher the number, the lower the perceived risk for lenders. While each bank sets its own cut-offs, here’s a general guide to how scores are viewed:

731 and above - Excellent: A very good score with high chances of approvals and access to the best rates.
680-730 - Good: Solid standing with most lenders, though you may not always get top-tier deals.
620-679 - Fair: You might get approved, but expect stricter terms or higher interest.
300-619 - Poor: High risk in the eyes of lenders. Approvals will be rare without improving your score first.

So, how are credit scores calculated?

The exact scoring model is complex and confidential; however, it is largely aligned with similar international credit scoring systems. The following are key factors that determine your credit score:

Payment history (~ 35% weight): This is the most important factor, tracking whether you pay your obligations on time. Be careful, as these are not just loans and credit cards, but also telecoms and utility bills!
Credit utilisation (~ 30% weight): Looks at how much of your available credit you are using. If you’re maxing out your credit card every month, this will impact it negatively. Aim to keep your utilisation below 30% for a healthy score, and avoid going over 50% unless absolutely necessary.
Length of credit history (~ 15% weight): The longer your clean record, the better. It shows you can manage credit responsibly over a period of time, so keep your oldest accounts open if you can to maintain this part of the score.
Credit mix (~10% weight): A mixture of instalment-based lending (e.g. personal, car loans or mortgages) and revolving credit (e.g. credit cards) shows you can manage both types of repayments. Having both is not critical, but it helps.
Credit inquiries (~ 10% weight): Applying for a lot of credit in a short timeframe can make you look desperate, which is a warning sign for banks. It’s best to keep “shopping around” for deals limited to 2-3 providers at a time.

These percentage weights are based on industry estimates, as the credit bureau does not publish the exact scoring formula.

Other hidden calculations that cause rejections

Your credit score is not the only thing at play when it comes to lenders deciding if they can give you a credit card or loan.

There are other less-known metrics you need to be aware of:

Debt Burden Ratio (DBR) - This is a limit set by the UAE Central Bank, dictating that no more than 50% of your monthly income can go towards debt repayments. If the repayments of a new loan could cause the DBR to breach the 50% limit, the bank will refuse to lend, as it would be violating UAE regulations.

It’s worth noting that even if you repay your credit card in full every month, its credit limit still impacts your DBR. Banks usually treat any outstanding balances or 5% of the credit limit (whichever is higher) as the repayment amount in DBR calculations.

Special cases apply for retirees or people nearing retirement (where the limits are lower) and joint applications (e.g. a mortgage in two people’s names).

All debt payments are considered in DBR calculations, covering mortgages, personal loans, credit cards, car loans, etc.

DBR = (Total monthly debt payments ÷ Total monthly income) × 100

Personal Loan Amount Cap - Another regulatory limit applies to personal loans and caps them at 20 times your monthly income. This means the total loan amount (combined with any other existing personal loans) cannot exceed 20x your salary. The maximum tenure of a personal loan is set at 4 years.

Personal loan cap = 20 x Total monthly income

Final words

Building a strong credit score is a long game – but the earlier you start, the easier it gets. Check your report now, fix any errors, and build good habits so you’re ready when opportunity knocks.

And if you want tips on how to improve your credit score, check out our previous article on 5 ways to improve your UAE credit score.

IN THE NEWS - How to get 4 black points removed from your license

You may ask: what's that got to do with my finances? If you recall our recent article on car insurance renewals, your insurance premium is linked to your driving record. And yes, that includes black points.

With the government's initiative anyone that maintains a clean driving record on 25th August (i.e. the first day of school) can have 4 black points wiped from their record. That's particularly helpful if your renewal is coming up!

All you have to do is sign up to the safe driving pledge in advance. Read more about it in this Khaleej Times article.

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.