In the United Arab Emirates (UAE), knowing your credit score is important, especially if you want to be smart with your money. But, many myths that need to be clarified are out there that can make things unclear. This guide is here to help clear up those misunderstandings. We’ll take you through the myths and explain the truth so you have the correct information to look after your credit score correctly. Consider it as friendly advice to help you stay on top of your financial game. 

Myth 1: Checking Your Credit Score Lowers It

Fact: Many people believe that if they check their credit score, it might decrease. This is a myth. When you look at your credit score, it’s called a ‘soft inquiry.’ Unlike ‘hard inquiries’, which happen when a lender checks your score, a soft inquiry doesn’t affect your score. It’s completely harmless. In reality, regularly checking your credit score is a wise decision. It helps you understand your financial health. 

You can spot any unexpected changes or errors by keeping track of your score. This way, you can address issues early on. So, don’t hesitate to check your credit score. It’s a smart step towards managing your finances better. Remember, staying informed about your credit score is beneficial and won’t harm your credit rating.

Myth 2: Your Salary Influences Your Credit Score

Fact: Many people think that the amount of money they earn, like their salary or income, impacts their credit score. However, this is a common misconception. In reality, your income doesn’t directly change your credit score. Credit bureaus, the organizations that create credit scores, focus on different things. They look at how you use your credit, such as how much of your credit limit you use and if you’re using it responsibly. They also consider your payment history, like if you pay your bills on time. Other credit behaviors, such as the length of your credit history and your credit types, are also important. 

So, even if you earn more or less money, it won’t directly affect your credit score. Remember, managing your credit well is key to a good credit score, not how much you earn.

Myth 3: You Only Have One Credit Score

Fact: Did you know that you don’t just have one credit score? It’s true! There are several credit bureaus in the UAE, and each one might give you a different credit score. Why? Because they all use their unique ways to calculate it. Each bureau looks at your financial history – like how you use your credit card and pay bills – but they mix these details in their special way to get a score. This is why your score can vary slightly from one bureau to another. It’s important to know this because your credit score affects things like getting a loan. So, always keep your financial habits healthy to maintain good scores across all bureaus!

Myth 4: Closing Old Credit Cards Boosts Your Score

Fact: Closing old credit card accounts might seem like a good way to boost your credit score, but this needs to be clarified. Your credit score, which shows how reliable you are with money, can be affected negatively if you close these accounts. Here’s why: Part of your score is based on how long you’ve had credit. Older accounts show a longer history, which is positive. 

Also, you reduce the total credit available when you close an account. This can increase your credit utilization ratio – the amount of credit you use compared to what’s available. A lower ratio is better for your score. So, keeping old accounts open can be beneficial even if you’re using them sparingly. It’s important to manage credit wisely for a good financial future.

Myth 5: All Debts Are Bad for Your Credit Score

Fact: Debt is sometimes good for your credit score. Think of it like a tool: used wisely, it can help you. For example, if you have a home loan or a credit card, these can be good for your credit history. The key is to manage them properly. How? By making sure you pay back what you owe on time. Each time you do this, it’s like giving your credit score a little boost. It’s telling lenders, “Hey, I’m good at paying back what I borrow!” So, while it’s important to be careful with borrowing money, remember that not all debt is harmful. As long as you stay on top of your repayments, some debts can work in your favor, helping to build a positive credit history.

Understanding Credit Scores in the UAE

The Al Etihad Credit Bureau (AECB) provides credit scores in the UAE. Your score is a number between 300 and 900. Higher scores indicate better creditworthiness, essential when applying for loans, credit cards, and some rental agreements.

Want to read more about credit scores & reports? Visit our blog about ‘What is a Credit Score in the UAE, and How Does It Work?

How is the Credit Score Calculated?

  • Payment History (35%)
  • Amounts Owed (30%)
  • Length of Credit History (15%)
  • New Credit (10%)
  • Credit Mix (10%)

The Role of AECB in the UAE

The Al Etihad Credit Bureau plays a critical role in the financial system of the UAE. It collects and maintains credit information from financial and non-financial institutions, providing a comprehensive credit report that influences your credit score.

Improving Your Credit Score in the UAE

Here are steps to boost your credit score:

  • Timely payments: Ensure all your bills and loan payments are on time.
  • Low credit utilization: Aim to use less than 30% of your available credit.
  • Credit applications: Apply for new credit sparingly.
  • Credit report checks: Regularly review your credit report for inaccuracies.

Credit Score and Financial Opportunities

A good credit score opens various financial opportunities in the UAE, like favorable loan terms, lower interest rates, and easier approval for renting properties.

Dealing with Credit Issues

If you’re facing credit issues:

  • Contact your creditors to discuss payment plans.
  • Consider credit counseling services for guidance.
  • Avoid high-interest loans as a quick fix.


In conclusion, debunking misconceptions about credit scores in the UAE is pivotal for astute financial planning. Your credit score, a reflection of your financial health, is not just a number but a gateway to numerous opportunities and economic benefits. Understanding the mechanics of credit scores and how they impact your financial journey is crucial. By managing your score with responsibility and awareness, you can unlock doors to better loan terms, lower interest rates, and even influence your eligibility for certain jobs and housing options. 

Regularly monitoring your credit score and being proactive in your financial decisions is not just advisable; it’s essential. Embrace this knowledge as a tool for financial empowerment, leading you toward a path of stability and success in the ever-evolving economic landscape of the UAE. For detailed information on credit scores and reports in the UAE, visit the Al Etihad Credit Bureau’s official website.

About Author

Rizalie Gumalog

About Author

Rizalie Gumalog is a digital storyteller known for her eclectic writing styles that captivate audiences. With her almost 3 years of experience, she crafts engaging articles that build meaningful connections between brands and their audience. Drawing inspiration from nature and music, Riza is committed to creating enriching experiences and is always ready for new digital explorations.