A healthy credit score can be the key to unlocking everything from lower interest rates to quicker loan approvals. Whether you’re applying for a mortgage, buying a car, seeking a personal loan, or even signing up for a postpaid mobile plan, your credit history plays a major role in how lenders and service providers assess your risk level.
But what exactly goes into your credit score—and how can you improve it?
Two financial experts, Joseph Dahrieh, Managing Principal at Tickmill, and Vijay Valecha, Chief Investment Officer at Century Financial, break down the basics and offer actionable advice.
Where to check your credit score
Unlike other countries that may have multiple private credit agencies, the UAE has a single federal authority managing credit information: the Al Etihad Credit Bureau (AECB). This centralised structure makes it easier to understand your financial profile and track your progress.
As Joseph Dahrieh explains: “In the UAE, credit scores and reports are provided exclusively by the Al Etihad Credit Bureau (AECB), a federal government-owned entity.” The AECB aggregates data from banks, finance companies, utility providers, and telecom operators to create individual and corporate credit profiles.
According to Vijay Valecha, “The best and fastest way to check an individual’s credit score is to go to the Etihad Credit Bureau’s website and pay a minimal fee of AED 10.50 to obtain it.” He also notes that credit scores can now be accessed through the DubaiNow app for added convenience.
What counts as a good credit score?
Your credit score in the UAE is a three-digit number that ranges from 300 to 900. A higher score indicates lower risk to lenders, which can significantly influence the terms of any financial product you’re offered.
Dahrieh points out: “A score of 700 or above is widely considered as good in the UAE financial landscape.” He adds that “scores from 711 to 745 are typically classified as ‘Low Risk,’ making loan approvals highly likely,” while scores above 746 are deemed “Very High” or “Excellent.”
Valecha offers a more detailed scale: “Within the UAE, a credit score in the range of 300 – 540 is considered ‘Poor’; 541- 650 is considered ‘Fair’; 651 – 710 is considered ‘Good’; 711 – 745 is considered ‘Very Good’; and 746 – 900 is considered ‘Excellent’.”
Factors that affect your score
Credit scores are not static. They change over time based on financial behaviour. Several key factors play into the AECB’s scoring model, and understanding them is critical for improvement.
Dahrieh explains: “Payment History tracks if loans, credit cards, utility bills, and phone bills are paid on time. A single late payment or bounced cheque can significantly lower the credit score.”
He also highlights Credit Management and the number of credit lines as crucial elements.
Valecha concurs and elaborates further: “Credit Limit Management – This shows how well an individual manages credit limits… Going past this limit can bring down creditworthiness.”
He also cautions that “Frequent applications and rejections can reflect poorly and may lower their credit score.”
Other red flags include bounced cheques and high outstanding balances.
Starting fresh: tips for new residents
For those new to the UAE, it’s possible to begin building credit from day one. Dahrieh advises: “The most fundamental first step is to ensure these bills are paid punctually every month to establish a baseline of reliability.”
Valecha outlines a more detailed roadmap: “The first step for an individual to start building a credit score is to open an account with a well-known bank and apply for a credit card.”
He explains how secured credit cards—which require a deposit—can be an effective starting point.
He also suggests that new residents:
- “Make small purchases and pay them off quickly”
- “Monitor Credit Utilisation Rate” (aiming to stay under 30%)
- “Get credit for paying bills on time” by making sure utilities and telecoms are paid promptly
The bottom line
In an economy as dynamic and credit-reliant as the UAE’s, understanding and maintaining your credit score is essential. Fortunately, the system is transparent, accessible, and responsive to good financial behaviour.
By following these strategies, residents—whether seasoned or new—can take control of their financial profile and position themselves for better financial opportunities.
