CREDIT SCORE EXPLAINED

What is a credit score?

In the UAE your credit score is a number generated by the Al Etihad Credit Bureau, which represents your credit worthiness – in other words, your risk of defaulting on any debt repayments. In this country, the number is between 300 and 900. A low score indicates a higher risk of default, while a high score indicates you are a low risk.

Why is it important?

Financial institutions will use it to decide whether or not you are a credit risk. Those with better scores may also receive preferential interest rates or terms on products such as loans, credit cards and mortgages.

How is it calculated?

The credit bureau collects information on your payment behaviour from banks as well as utilitiy and telecoms providers.

How do I know if my score is low or high?

By checking it. Visit one of the credit agency’s Customer Happiness Centres with an original and valid Emirates ID, passport copy and valid email address. Liv. customers can also access the score directly from the banking app.

How much does it cost?

A credit report costs Dh100 while a report with the score included costs Dh150. Those only wanting the credit score pay Dh60. VAT is payable on top.

How can I improve my score?

By paying your bills on time and not missing any repayments. It is also wise to limit the number of credit cards and loan applications you make.