Al Etihad Credit Bureau was launched in 2014, it is a Federal Government company which collects, collates and disseminates credit reports on everyone who is credit-active in UAE. If a person has a credit card, car loan, personal loan, mortgage, overdraft facility or any other form of credit in UAE, the person will be included in the database.
When you are looking for credit the lender will look into your credit report and decide if you are eligible for the loan and if you have any loans pending or if you have settled them, etc. It is more likely that the lender will reject your application if your credit score is low.
What is a credit score?
Credit score is a 3 digit number that is based on accurate algorithm that will predict your future credit behaviour. Credit score is the new measure of your financial strength and you need to maintain a high score by practicing good credit habits. The credit score determines how easily you will get a loan. It also determines the rate at which you get the loan. If you have a high credit score, you are in a better position to negotiate the terms and conditions as well as the interest rate. You are the most eligible customer and the bank can trust that you repay your loans on time and have good credit habits.
A good credit score can be maintained by:
- Paying bills on time.
- Not just paying the minimum balance but clearing out the entire credit card balance each month.
- Not taking too many credit.
- Not have more than 2 credit cards.
- Accumulating asset and not just creating debt.
- Never missing a due date.
- Never settling a debt.
- Using credit only when needed after having explored other forms or raising funds. You can borrow from your friends or dig into your savings or taking a secured loan instead of unsecured loan.
If you are unable to repay a loan, talk to your lender and ask for more time or try and get the interest rate decreased or you can consider consolidating your loans to make it easier for you to repay the loans.
What is a credit report?
Credit report is a historical credit data accumulated from various utilities, government, financial institutions, etc. on companies and individuals in UAE. The credit report includes the following:
- Record of previous and current credit facilities. The amount you have borrowed and the repayment term chosen and the interest to be paid.
- Payment history for the last 2 years. There is detailed payment history section in your report that will mention the amount paid each month towards each loan.
- Overdue payments will also be mentioned. If there are any payments overdue as you missed paying them, then it will be mentioned in the credit report.
- Record of default, if any. If you have defaulted on your payment, it will show in your credit report. This is one of the major factor that leads to your loan application rejection. You must never default your loans. If the interest is high and you can’t afford it, negotiate the terms with your lender so that the loan doesn’t become a bad credit.
How to obtain a credit report?
If one wants to obtain his or her credit report, he or she must visit the Customer Service Center at Al Etihad Credit Bureau and apply for the credit report. The individual will have to submit certain documents to avail the credit report.
The documents required to obtain a credit report for an individual is as follows:
- Original Emirates ID card of the applicant.
- Old and new passport copy of the applicant.
- Duly filled Credit Report Application Form for an Individual.
For authorisation, an individual must bring the following:
- Copy of valid Emirates ID card.
- Copy of passport of the customer that is the owner of the report card.
- The authorised person's original Emirates ID card.
- Duly filled individual’s authorisation letter.
- Original notarized Power of Attorney which is acceptable to the Al Etihad Credit Bureau or Authorisation Letter that includes authentication of the customer's signature from a bank.
The documents required to obtain a credit report for a corporate is as follows:
- Establishment owners or the company’s authorised signatory’s original Emirates ID card.
- Establishment or Company Trade Licence.
- Original Articles of Association of the Company.
- Duly filled Credit Report Application Form for a company.
For authorisation, the corporate must bring the following:
- Establishment owners or the company’s authorised signatory’s valid Emirates ID card.
- Authorised person's original Emirates ID card.
- Company or Establishment Trade Licence.
- Original Article of Association of the Company.
- Original notarized Power of Attorney which is acceptable to the Al Etihad Credit Bureau or Authorisation Letter that includes authentication of the corporate’s authorised signatory from a bank.
- Duly filled Authorisation letter for Corporates.
Credit reports price list
The following are the different types of credit report and its prices:
|Report type||Price per report in AED|
|Short credit report for individuals establishments||70|
|Long credit report for individuals establishments||110|
|Short credit report for Corporates||150|
|Long credit report for Corporates||180|
For queries, you can call on 600566662.
If the individual or commercial entities suspect that the data is wrong or incorrect, they can dispute the data present in the credit report.
The following is the report information dispute process:
- Customer should register a dispute with documents that prove that the data provided in the credit report is incorrect. Customer can provide banking statements relevant documents and utility bill statement.
- The customer service representatives will then raise a dispute flag in the system.
- The data management team will verify the dispute with the credit provider. The credit provider will be given a maximum of 20 working days to resolve the dispute and update the system with the revised data.
- The customer service representative will then contact the customer and provide feedback regarding dispute.
Document required to file a dispute
Following are the document required to file a dispute by an individual:
- Original credit report.
- Original Emirates ID card.
- Supporting documents such as payment receipt, bank statements, contract repayment schedule, or any other relevant document.
- Duly filled in Credit Report Data Dispute Form for individuals.
Following are the document required to file a dispute by a corporate:
- Original project report.
- Valid trade licence.
- Original Emirates ID card.
- Supporting documents such as payment receipt, contract repayment schedule, bank statements, or any other relevant document.
- Duly filled in Credit Report Data Dispute Form for Corporates.
Content of the Al Etihad Credit Bureau Credit Report
Your credit report will contain the following:
- CB Subject ID: This number is a unique number created by Al Etihad Credit Bureau. The first section will also include your title, name, gender, date of birth, nationality, and your resident flag.
- Score: Your credit score determine your overall creditworthiness. It also includes the total outstanding balance, total amount overdue, and the number of default contracts. The total outstanding balance is the total amount of liabilities that is due with your credit providers. The total amount overdue is the total missed and late payments for your credit facilities with all your credit providers. The number of default contracts are when you have crossed 90 days overdue.
- Documents: This includes your identification number that is your Emirates ID Card number, passport number, etc.
- Address: Your present and past address details will also be mentioned.
- Employments: Your employment details such as employment type, annual income, date of employment, date of termination, provider number and the date of last update will be mentioned.
- Contacts: Your phone number, provider number, and date of last update will be mentioned.
- Other income: Your other source of income, the annual income, provider number, and date of last update will be mentioned.
- Contracts: Contracts is the summary of the number of credit facilities requested. It includes the total number of records, total number of reporting data provider, credit facilities requested for instalment, non-instalments, credit cards and services, credit facilities refused, not taken up, active, and closed. This section includes details of total exposure, credit utilization rate on the credit cards, worst current payment delay, worst payment delay in 2 years, oldest contract start date, newest contract start date, number of enquiries in the last 90 days, total outstanding balance of guaranteed contracts, and total overdue of guaranteed contracts.
- Financial summary: This section is the summary of all the active contracts that belong or are related to you. It includes details of active contracts and if you are the main contract holder or a guarantor or a co-contract holder. The total monthly instalment amount due, total outstanding balance amount and total overdue amount information will be available for instalments, non-instalments and credit cards.
- Contract details: This includes the full details of the payment history for all the contract belonging or relating to you. It includes the details such as type of contract, phase, role, start date, date last updates, contract ID, outstanding balance, method of payment, currency code, total amount, total number of instalments, number of instalments remaining, payment frequency, payments amount, closed date, Islamic contract flag, secured contract flag, overdue amount, number of days payment delay, maximum overdue amount, maximum overdue amount date, maximum number of days of payment delay, maximum number of days of payment delay date, worst status, and worst status date. The contract details of the instalment, non-instalment loans and credit cards are available in this section.
- Application: This section lists out all the applications you have made for credit facility with the lending institutions. It mentions the type of contract, phase, role, date of last update, total amount, number of instalments, credit limit, and links.
The data contained in the credit report is supplied by various parties and it is collated from various sources. The Al Etihad Credit Bureau is not responsible for the correctness. If you find any discrepancies, bring it to the notice and get it fixed.
Benefits of a Credit Report
Credit reports are beneficial to lenders and banks, they get a clear picture of the individual who is applying for the credit. The credit report makes it possible for them to take an informed decision on if the person has to get the credit or not. The lenders and banks can study the past behaviour and draw conclusions through it.
This however seems like a bad deal for the customer. But, if the customer knows where he or she stands and where they are going wrong, they can work on it and fix it. The credit report will be made available to you for a price. The information gathered in the credit report makes it possible for a person to identify the credit rating if it is weak and the possible steps that can be taken to offset it. The credit report gives an unbiased view on the financial affairs of a person and this helps them understand the debt level and the financial obligation. This will help an individual plan the future borrowing and manage their finances in a better way.
Why must one review their credit report?
Most people think that what the credit report says makes no difference to you and that by having no credit you have an impeccable score. This is not true, having no credit simply means having no score and this will be a deal breaker with most lenders. Therefore it is important to have a credit and that you must keep a track of your credit, your credit score and the report. The following are the reasons why you must keep reviewing your credit score:
- To be sure if the information in the report is accurate.
- To be sure if there is no wrong information included in your report.
- Before taking a big loan, you need to check if there is anything in your credit report that might possible lead to the loan application rejection.
- To safeguard yourself against identity theft.
- To check if they are eligible to get a loan.
It is advisable to be aware of your credit score before you approach a lender for a loan as you will be in a better position to negotiate the rates and terms and conditions.