Al Etihad Credit Bureau (AECB) Credit Report
Al Etihad Credit Bureau fulfills a crucial role by gathering and consolidating credit information for individuals and institutions, empowering creditors to make well-informed lending decisions. As a public joint-stock company wholly owned by the UAE Federal Government, Al Etihad Credit Bureau requires financial and non-financial institutions in the UAE to furnish credit information. This data is utilized to generate Credit Scores and Credit Reports for individuals and businesses in the UAE.
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The Al Etihad credit bureau report includes the following information:
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Credit history, both current and previous
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Detailed payment history for the past 24 months
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Defaulted payments
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Visit the AECB's Official Website here:
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How does Al Etihad Credit Bureau work?
To gather and process financial data, AL Etihad Credit Bureau looks for individuals who have -
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borrowed
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used credit cards
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engaged in financial transactions.
These activities provide key insights into the borrower's financial responsibility. The bureau also checks utility bills and tenancy histories if necessary. Notably, specific wages are only considered later in the data collection process. Both credit and financial transaction records are necessary to compile a comprehensive credit report.
In collaboration with Ras Al Khaimah, Abu Dhabi, and Dubai's federal courts, the AECB records subsequent rulings against individuals for payment issues. However, it's important to note that AL Etihad Credit Bureau doesn't decide whether an individual will be granted credit. Instead, lenders use the information provided by the bureau to make their own decisions based on the collected and synthesized data.
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In addition to selling credit information to lending institutions, AL Etihad Credit Bureau also offers credit information directly to individuals. This allows individuals to access their own credit information and stay informed about their financial standing.
UAE Credit Reports and Scores
Accessibility of Official Credit Reports:
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Official credit reports are readily accessible to both individuals and companies operating in the UAE.
Impact on Financial Decisions and Benefits:
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Credit scores serve as critical metrics examined by institutions during financial product applications.
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Many UAE banks prioritize customers with fair or good credit scores, making loan approval more likely.
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A good credit score brings various benefits, including favorable fees, interest rates, and other financial perks.
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Stress on the necessity of reviewing detailed information in both credit scores and AECB credit reports for informed financial decisions.
Range of Credit Scores
The AECB (Al Etihad Credit Bureau) assigns individuals a three-digit credit score, a crucial metric examined by financial institutions when assessing applications for various services. The credit score range spans from 300 to 900, with lower scores signaling a higher risk for timely repayment, and higher scores indicating a lower risk. Although there aren't rigid categories of 'good' or 'bad' credit scores, individuals typically strive for a score within the range of 680-700 or higher.
Importance of Credit Score
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AECB credit scores impact more than just application approvals, influencing factors such as loan amounts, credit card limits, and interest rates.
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Beyond financial institutions, employers, landlords, and insurance providers consider credit scores for decisions on job offers, rental agreements, and insurance policies.
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AECB credit reports provide a comprehensive view, assessing financial ratings based on debt levels, due loans, and financial history.
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Individuals can use these scores for better financial management and strategic planning for future borrowing.
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The dynamic nature of credit scores is highlighted, reflecting fluctuations with each transaction and repayment.
Al Etihad Credit Bureau Report: What Information is Included?
​Information gathered from a variety of sources, including financial institutions, utility companies, and government agencies, is meticulously collected and analyzed to formulate the credit report score for an individual. The comprehensive credit report provided by Al Etihad Credit Bureau encompasses the following key details, supplementing the credit score:
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Record of Credit Facilities: This section includes information about both current and past credit facilities utilized by the individual. It provides a historical overview of the individual's borrowing activities.
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Payment History (Last 24 Months): A detailed account of the individual's payment history for the past 24 months is outlined. This includes information on timely payments as well as any instances of delayed payments.
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Delinquent Payments: Instances of delinquent payments are specifically highlighted. This section brings attention to payments that were not made within the stipulated time frame.
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Defaults and Uncleared Cheques: The credit report includes information about any defaults on payments and the presence of uncleared cheques. This offers insights into the individual's financial obligations and potential areas of concern.
Breakdown of Credit Report Terms
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Credit Score Section:​ The AECB credit score is located in the right corner of the credit report and is also represented by stars, with a maximum of five stars.This section includes ID proof, contact information, employment history, and the user's residence address.
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Credit Facilities Overview: Encompassing both past and current credit facilities, it details the number of credit applications made, accepted, and rejected.
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Subject ID: A unique nine-digit ID assigned by AECB for identification purposes.
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Credit Summary: Ratings on a 5-star scale, with five being the highest.
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Outstanding Balance: Reflects the total amount owed by the individual across all outstanding loans.
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Identification Details: Includes passport and Emirates ID details for comprehensive identification.
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Contact and Address Info: Presents present and former residential addresses, email addresses, and contact numbers.
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Employment Section: Provides details about the individual's current organization, designation, and income.
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Instalments Overview: Lists all loans, including personal loans, home loans, auto loans, along with details of respective instalments.
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Revolving Credit: Covers financial products like instalment credit, allowing payments at varying frequencies instead of strict monthly instalments.
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Cards Information: Encompasses key details about debit cards, credit cards, and other relevant card information.
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Application Details: Contains information on pending or rejected credit card or loan applications made by the individual.
What Information do Al Etihad Credit Bureaus not Consider?
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Savings and Investments: Direct records of investments are not directly relevant. However, if loans have been taken for investments like cars or homes, these are included in the AECB credit report.
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Personal Information:​ Marital status, past criminal records, and the level of education attained are not considered in the credit score evaluation.
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Medical Information: ​Credit bureaus are restricted from disclosing mental, physical, or medical health information. Nevertheless, medical payment data might appear on the credit report.
How can You Apply for a Credit Report?
1. Visit any AECB customer service center.
2. Present a copy of your Emirates ID card and passport to one of the customer service representatives.​
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Original Emirates ID card.
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A copy of the third party's Emirates ID card and passport
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A notarised Power of Authority or AECB authorisation form that includes verification of the signature of the third party by the bank
3. After furnishing all required details and documents, promptly complete the payment to obtain your credit report instantly.
Cost Involved in obtaining your Credit Report
Credit Report | Fees in AED |
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Only credit score | 10.5 (online) or 21 (offline) |
Credit score and report | 84 (online) or 105 (offline) |
Credit Score (Companies) | 10.5 if obtained online |
21 if obtained offline | |
Credit Score and Report (Companies) | 157.5 (applied online) or 189 (if availed offline) |
What if your Credit Report has False Information?
Though the likelihood of inaccuracies in your credit report is minimal, it's essential to promptly reach out to the relevant information provider if any inaccuracies are identified. If a resolution isn't achieved with the information providers, you can escalate the matter by attaching supporting documents to substantiate your claim and sending them to disputes@aecb.gov.ae. It's crucial to note that to initiate a dispute with AECB, you must furnish clear proof regarding the reported error.
Documents Required to Dispute Credit Report
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Documents supporting the claim with bank statements and payment receipts
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Dispute application form
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Identification documents like Emirates ID
Facts to keep in mind on Credit Report
New Credit Cards and Credit Scores:
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Introduction of a new credit card does not inherently lower your credit score.
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The impact on credit scores is generally tied to payment history.
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Potential for delays in payments may adversely affect your credit score.
Cost of a Low Credit Score:
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A low credit score may lead to denial of personal loan applications.
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Even if approved, financial products may come with high-interest rates.
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Maintaining a higher credit score is beneficial for long-term financial well-being.
Excess Credit Cards and Credit Scores:
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A common misconception is that having too many credit cards improves credit scores.
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While new credit cards may not immediately impact scores, having an excess can diminish each card's impact.
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Lowered credit scores can result in higher interest rates, potentially exceeding budget plans.
Credit Score Impact on Limits:
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Credit card and loan limits are significantly influenced by your credit score.
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Lower credit scores may prompt banks to lower limits due to perceived financial mismanagement.
Dynamic Nature of Credit Scores:
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Credit scores are not static; they can increase or decrease over time based on your actions.
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Timely payments can lead to score improvement, while delays in bill repayments may lead to a decrease in credit scores.