With Al Etihad Credit Bureau (AECB) in place, every mortgage lender looks at your credit report to check the current financial situation and borrowing history, which indicates them to work out how much they can lend, and whether they can trust you to pay it back. It also empowers to have superior pricing of loans, to those who ensure a decent credit score.

Altogether from meeting the conditions for a credit card, personal, auto loan to getting a mortgage will now ride on how good your credit scores are. It’s always great to know your credit scores and comprehending the credit history is an essential first step in your home finance, as it helps to determine the rate and conditions on a mortgage loan. If your credit scores are high, lenders will consider your application as a low-risk investment profile and will process the application faster with favorable conditions. Whereas, if the scores are lower the lender might place your application in a riskier investment category while keeping it on the apparent risk or decline the application. Therefore, once strongminded that you’re ready to buy a home, you are essentially required to figure out how lenders count on your creditworthiness.

Credit Score

A Credit Score is a three-digit numerical expression grounded on the individual’s credit file analysis, which epitomizes his/her, credit health. Credit score numbers are based on the credit report statistics that envision how well you settle up each of your debt onuses. Al Etihad Credit Bureau (AECB) is the credit agency who maintains the credit report in the UAE, and clusters all the information about your credit from diverse sources. Here the score ranges from 300 to 900 which are calculated using copious factors including nationality, age, outstanding balances, credit exposure, and the average credit age.

To ascertain if the applicant is a conscientious borrower, the lender needs a credit history to appraise the past debt performance and the loan exposure get calculated based on a bank’s risk appetite for every individual. These three digit numbers help financial institutions to offer the speedier approvals, lower costs of borrowing and other advantages.

Improve or Maintain a Healthy Score

There are always means to boost the credit health. Give a cautious look to your financial habits and recognize where you can improve- Pay your bills on time, loan installments or credit card repayments on time. To calculate the score, the agency gets the information checked from numerous sources for instance banks, finance, and telecoms companies, so make sure to fix entire overdue amount by the due date to entitled yourself for a better interest rate. Furthermore, to build or maintain healthy credit it requires years practice and efforts. Having the right balance with your borrowing habit can escalate your credit rating.

Good Credit Score

 In UAE credit score ranges from 300 to 900, where 900 is the best score you can obtain and 300 being the lowest. If the score is above 700, it is generally reflected as a credit healthy. Consequently, the closer you are to 900, the more assurance the financial lender will have in your competence to pay off the loan and hence, it gives better prospects for your application getting accepted.

Buying a home is still a goal for many, but surging interest rates will make affordability even bigger factor, along with the massive market movement. Just a slight variance can create or halt the planning, depending on the amount of the loan you ask for. However, it’s worth seeing whether you can afford a big-ticket house or not. Ensure your credit score is acceptable enough in order to achieve the best rate and keep your debt payments wieldy.

To acquire the report, one can visit the Al Etihad Credit Bureau’s customer service centers with valid Emirates ID and the passport copy. A standard credit report for individuals or establishments costs AED 100, while the document with a score is an additional AED 50.  For corporate, the standard report cost AED 180, or with a score, it’s AED 220. Furthermore, to have precise information on the system functioning, visit the Credit Bureau website.

So, do keep an eye on your credit to get access to a better rate and terms with the financial institution to build your dream house. And even consult with your mortgage advisor to have a better understanding as per your credit situation.

Connect with 4C Mortgage Consultancy certified consultant, and let them help you to plan your investment in Dubai. 4C Mortgage Consultants provide best mortgage consultancy for a resale property, new purchase property, mortgage refinance, off plan purchase, construction mortgage, project finance, commercial mortgage, buyout, equity release, Non-UAE Resident mortgage in Dubai. Follow us on Twitter, Facebook, and LinkedIn and keep yourself updated with more home buying tips.