In the UAE, a strong AECB credit score is one of the most important factors in getting personal loans in UAE approved with low interest rates. Your score directly impacts loan eligibility, approval speed, and the terms offered by banks and financial institutions.
Whether you are applying for a new loan or refinancing an existing one, lenders will carefully check your credit history, payment behaviour, and debt-to-income ratio to assess your creditworthiness and risk profile. A higher score can save you thousands of dirhams over time by unlocking better rates on best credit cards in UAE, home loans, and car loans.
In this guide, you'll discover practical steps to increase your AECB score, reduce outstanding debt, and maintain a healthy financial profile. Whether you’re a first-time borrower or looking to restructure your existing loans, following these strategies can make you a preferred customer in the UAE lending market in 2025.
Understanding Credit Scores in the UAE
A credit score is a numerical representation of your creditworthiness, helping lenders decide how risky it is to lend you money.
In the UAE, credit scores are managed by the Al Etihad Credit Bureau (AECB), the official credit bureau that collects and analyzes your financial data.
How credit scores are calculated:
- Payment history (timely loan and bill repayments)
- Credit utilization (amount of credit used vs. available)
- Length of credit history
- Types of credit accounts (loans, credit cards)
- Recent credit inquiries
The typical credit score range in the UAE is 300 to 900. A higher score (usually above 700) means you are a low-risk borrower, increasing your chances of loan approval and better interest rates.
Regularly monitoring your UAE credit report helps you maintain a strong financial profile and unlock favorable loan options.
Key Factors Affecting Your Credit Score in UAE
Understanding what impacts your credit score in the UAE is essential to improve it. Several key factors influence your credit rating, which lenders use to assess your loan eligibility.
Main factors include:
- Payment History: Timely repayments of loans and bills show reliability and boost your score.
- Credit Utilization Ratio: Keeping your credit card balances low relative to your limits helps maintain a healthy score.
- Length of Credit History: A longer credit history shows your experience with managing credit responsibly.
- Number and Types of Credit Accounts: Having a mix of loans and credit cards indicates good credit management.
- Recent Credit Inquiries: Frequent loan or credit card applications may lower your score, signaling higher risk to lenders.
By focusing on these factors and practicing responsible financial habits, you can steadily improve your UAE credit score and qualify for better loan offers.
Practical Steps to Improve Your Credit Score in the UAE
Improving your credit score in the UAE takes time and disciplined financial habits. By following simple, practical steps, you can boost your creditworthiness and unlock better loan options with favorable interest rates.
1. Pay Your Bills and Loans On Time
Consistently making timely payments on your loans, credit cards, and utility bills is one of the most effective ways to improve your credit score.
Late or missed payments negatively affect your credit history, signaling risk to lenders.
2. Reduce Outstanding Debts and Avoid Maxing Out Credit Cards
Keeping your debt low is crucial. Aim to use less than 30% of your available credit limit.
High credit utilization can lower your score and make lenders hesitant to approve loans.
3. Avoid Multiple Loan or Credit Applications in a Short Time
Each loan or credit card application generates a credit inquiry, which can temporarily reduce your credit score.
Multiple inquiries in a short period suggest financial distress and increase risk.
4. Keep Older Credit Accounts Open
The length of your credit history positively impacts your score. Avoid closing old accounts even if you don’t use them often, as they show your long-term credit management.
5. Regularly Check Your Credit Report for Errors
Errors on your UAE credit report can unfairly harm your score. Monitor your report regularly via Al Etihad Credit Bureau and dispute any inaccuracies immediately.
6. Use a Mix of Credit Types Responsibly
Having a balanced mix of credit, such as personal loans, credit cards, and car loans, shows lenders you can manage different types of credit responsibly, which can boost your score.
By following these practical steps, you can steadily improve your credit score and become a more attractive borrower to banks and financial institutions in the UAE.
A strong credit score not only helps you get loan approvals but also secures lower interest rates, saving you money in the long run.
Our 2025 UAE Credit Score Roadmap
Improving your AECB credit score in UAE is the key to unlocking better personal loan eligibility, low interest credit cards, and attractive financing options in 2025. Follow this roadmap to strengthen your credit profile and secure the best loan terms from UAE banks and financial institutions.
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Prioritize On-Time Payments Across All Bills (35%)
Payment history has the biggest impact on your credit score for loans in UAE. Pay credit card bills, loan EMIs, utility bills, and telecom payments on or before the due date. Use auto-payments or reminders to avoid late fees and negative marks on your AECB credit report.
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Keep Credit Utilisation Ratio Low – Under 30% (30%)
Keep your credit utilisation ratio below 30 percent of your total credit limit. If your combined limit is AED 30,000, try to use less than AED 9,000. Split payments during the billing cycle or pay balances early to keep utilisation low and boost your score.
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Hold On to Older Credit Accounts (15%)
A longer credit history supports a stronger AECB score. Avoid closing older credit card accounts even if used rarely. They increase average account age and total available credit, which also lowers your utilisation percentage.
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Diversify Your Credit Types Wisely (10%)
A healthy mix of credit shows lenders you can manage different products responsibly. Consider a personal loan in UAE, a car loan, and the best credit cards in UAE only if you can comfortably manage repayments.
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Minimize New Hard Inquiries (10%)
Each new application for a loan or credit card triggers a hard inquiry that can slightly reduce your score. Limit new applications and choose pre-approved or pre-qualified offers when possible.
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Check Your AECB Report and Dispute Errors Regularly
Review your AECB credit report UAE via the official app or website. If you find incorrect payment history or closed accounts showing as active, raise an AECB dispute to correct them quickly.
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Use Strategies Like Fixed Deposits or Co-Applicant Loans
Consider a secured credit card against a fixed deposit to build credit. For larger loans, adding a co-applicant with a high credit score can improve approval chances and interest rates.
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Be Patient and Stay Consistent
Minor gains can appear within 2 to 3 months, while meaningful improvement usually takes 6 to 12 months of on-time payments, low utilisation, and responsible borrowing.
How to Monitor Your Credit Score in the UAE
Monitoring your credit score in the UAE is vital for managing your financial health and improving loan approval chances.
Staying informed about your credit helps you detect issues early and maintain a strong credit profile.
Key ways to monitor your credit score:
- Use Al Etihad Credit Bureau (AECB): Access your official credit report and score online or via the mobile app.
- Regular Credit Report Checks: Review your UAE credit report at least twice a year to identify errors or fraudulent activity.
- Banking and Financial Apps: Many UAE banks offer free credit monitoring tools with real-time updates.
By regularly tracking your credit score, you can spot changes early and take steps to improve your creditworthiness.
This proactive approach boosts your chances of securing personal loans, home loans, or car loans with favorable interest rates in the UAE.
Common Mistakes to Avoid That Can Harm Your Credit Score
Maintaining a strong credit score in the UAE means avoiding habits that can lower it quickly. Here are common mistakes that negatively impact your UAE credit report:
- Missing Payments: Late or missed loan and credit card payments severely damage your credit history and score.
- Closing Old Credit Accounts: Shutting down long-standing credit cards shortens your credit history, which can reduce your score.
- High Credit Utilization: Using too much of your available credit (above 30%) signals financial stress to lenders.
- Multiple Loan Applications: Applying for many loans or credit cards in a short period causes multiple credit inquiries, lowering your score.
- Ignoring Credit Report Errors: Failing to check and dispute inaccuracies can let errors harm your credit unnecessarily.
Avoiding these mistakes helps protect your creditworthiness. Staying disciplined and informed keeps your credit score in the UAE healthy, improving your chances for loans with better interest rates.
Improving your credit score is a long-term commitment, but it’s a crucial one if you want to access loans at favorable interest rates in the UAE.
By paying your bills on time, reducing outstanding debt, avoiding unnecessary credit applications, and regularly checking your credit report, you can improve your score and increase your chances of loan approval.
Stay disciplined with your finances and remember that small, consistent efforts can lead to significant improvements in your credit score.
With a good credit score, you'll be well-equipped to achieve your financial goals, whether that’s purchasing a home, starting a business, or buying a car.
Start taking steps today and watch your credit score improve over time!