The bureau hopes the new system will see borrowers with good payment histories receive better rates when applying for a credit card or loan
Al Etihad Credit Bureau (AECB) launched a credit scoring system today, which could signal the end of blanket high credit card rates in the UAE.
Credit scoring, common in mature markets, is a three-digit number assigned to each borrower – in the UAE’s case between 300 and 900 – that represents their creditworthiness and future risk of default. The higher the number, the lower the risk.