Curious about your credit score in the UAE? Now, you’ll need to be more careful not to miss any bill payment as this affects your credit score in the country. Credit scores determine interest rates of auto, personal, and home loans.
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Two of the UAE’s major telecom providers, Etisalat and du, announced that they will rely more on Al Etihad Credit Bureau’s (AECB’s) reports and scores to assess an individual’s or company’s ability to meet future payments.
Al Etihad Credit Bureau: Bill Payment Delays Affects Your Credit Scores in the UAE
The two telecom firms are the largest entities in the UAE to provide outstanding bills and payment history on a regular basis on individuals and companies in the UAE to the AECB (Al Etihad Credit Bureau).
With the addition of du and Etsalat’s data, the AECB’s customer information database now stands at 9 million individuals and 600,000 companies.
According to Marwan Ahmad Lutfi, CEO of AECB: “With both Etisalat and du historic and current bill payment information submitted to the AECB, it is now critical for both individuals and companies to maintain timely payment schedules and avoid defaults … Essential telecommunications services payment patterns are going to show on credit reports and will undoubtedly impact one’s creditworthiness and ability to avail the attractive products and services offered within the industry.”
Moreover, credit score also becomes highly crucial when residents opt for personal, auto, or home loans as banks charge interest rates based on the credit score. That said, better credit scores result in lower interest rates and vice-versa.
The AECB manages credit data from banks, finance companies, telecom operators, water and electricity companies and courts.
“All banks and finance companies in the UAE use credit reports and credit scores to support their decisions in assessing applications for credit facilities,” said Lutfi.
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