Credit scores and credit reports

Long before you apply for a car loan, a flat or even some phone contracts, a lender will look at your credit history. Knowing how scores work in the UAE and the UK lets you build a strong record from your very first card or bill.

The AECB: the UAE's credit bureau

• The Al Etihad Credit Bureau (AECB) is a UAE federal government-owned institution and the national store of credit information on residents.
• It collects data from banks, finance and takaful companies, telecom operators, utility providers, courts and government entities.
• The AECB credit score is a three-digit number from 300 to 900. Higher scores mean lower risk, and banks use the score when reviewing loan and credit card applications.
• Under CBUAE rules, lenders must report your credit information to the AECB at least monthly.

What is in a UAE credit report

• Your personal identity information.
• Your credit cards, loans and other credit facilities.
• Your payment history and any bounced cheques.
• Obligations and payment history for the past three years, plus your most recently reported salary.

What helps and harms an AECB score

• Paying credit cards and finance on time, every time.
• Keeping total outstanding debt manageable.
• Using a small share of your credit limits rather than maxing them out.
• Not holding more cards and finance facilities than you need.
• Never writing a cheque that bounces, which appears on your report.

Checking your own report in the UAE

• Go to the AECB website or app and sign in with UAE Pass or your Emirates ID details.
• Choose a score-only report or a full credit report, verify your identity, and the report is issued as a PDF.
• Checking your own score is a soft enquiry and does not affect it. A formal application for credit triggers a hard enquiry, which can affect it temporarily.

Credit reports in the UK

• MoneyHelper lists four UK credit reference agencies: Experian, Equifax, TransUnion and Crediva. Each may hold different information, so check all of them before a big application.
• Checking your report is free. Correct mistakes straight away; even a typo in your address can affect an application.
• Being on the electoral register at your current address can help, if you are eligible to register.
• Too many applications in a short time can harm your score, and missed payments usually stay on your report for six years.
• Disputes with an agency should be investigated within 28 days. Avoid paid 'credit repair' firms, since you can do everything yourself for free.
• UK student loans do not appear on credit reports, though lenders may consider them in affordability checks.

Building a record from zero

• Pay every bill on time; automatic payments help.
• If you take a first credit card, keep the limit low and pay the full balance every month.
• Space out applications rather than applying for several products at once.
• Check your report once a year and before any major application.