Category: Popular

There can be several reasons why a credit card application may be declined. The specific reason for your application being declined can vary depending on the credit card issuer and their evaluation criteria. Here are some common reasons for credit card application rejections:

Low Credit Score: One of the primary factors considered by credit card issuers is your creditworthiness, as reflected in your credit score. If your credit score is low, indicating a history of late payments, high debt, or other negative factors, the issuer may deem you as a higher-risk borrower and reject your application.

Insufficient Income: Credit card issuers often evaluate your income to ensure that you have the financial means to make the required payments. If your income is below the issuer’s minimum threshold or you have significant existing debt obligations, they may determine that you have insufficient income to handle additional credit and reject your application.

High Debt-to-Income Ratio: Your debt-to-income ratio is the percentage of your income that goes towards debt payments. If your existing debt levels are high in relation to your income, it may raise concerns about your ability to handle additional credit. A high debt-to-income ratio can lead to a credit card application being declined.

Limited Credit History: If you have a limited credit history or no previous credit accounts, the credit card issuer may have difficulty assessing your creditworthiness. Without a track record of responsible credit use, they may choose to decline your application to mitigate the risk.

Inaccurate or Incomplete Application: Mistakes or omissions in the credit card application can result in rejection. Ensure that all information provided is accurate, complete, and matches the supporting documentation.

Recent Negative Credit Events: Recent instances of late payments, defaults, bankruptcy, or other negative credit events can significantly impact your creditworthiness and lead to a credit card application being declined.

Employment Stability: Some credit card issuers consider your employment stability as a factor in the application evaluation process. If you have a short employment history, frequent job changes, or are currently unemployed, it may affect the decision.

Previous Credit Card Issues: If you have a history of defaulting on credit card payments, consistently exceeding credit limits, or engaging in fraudulent activities, it can lead to future credit card applications being declined.

It’s essential to carefully review the issuer’s eligibility requirements and evaluate your own financial situation before applying for a credit card. If your application is declined, you can contact the credit card issuer to inquire about the specific reasons for the rejection. They may provide further insights or suggestions to improve your chances in the future.

The consumer lending approval process in the UAE has certain unique aspects compared to other countries. Here are a few factors that make the UAE consumer lending approval process distinctive:

Emphasis on Salary Transfer: In the UAE, many banks require applicants to have their salary transferred to a bank account with the lending institution. This practice ensures that the bank has direct visibility and control over the borrower’s income, enhancing their confidence in the borrower’s ability to make repayments.

Debt Burden Ratio: The UAE Central Bank has set guidelines to regulate consumer lending, including a maximum debt burden ratio. This ratio is the percentage of the borrower’s monthly income that can be allocated towards debt repayments. Banks evaluate an applicant’s debt burden ratio to determine their capacity to handle additional debt.

Salary Multiple: Lenders in the UAE often use a salary multiple to assess an applicant’s creditworthiness. This is the multiple of the applicant’s monthly salary that determines the maximum loan amount they are eligible for. The salary multiple varies among banks and is influenced by factors such as the applicant’s income level, job stability, and existing financial commitments.

Company Listing: Banks maintain a list of approved companies from which they accept salary transfer for loan applicants. Some banks limit lending to specific companies or industries, considering the stability and reliability of the employer in assessing the borrower’s repayment capability.

Credit Bureau Reporting: The UAE has a credit bureau, Al Etihad Credit Bureau (AECB), which collects and maintains credit information of individuals and companies. Banks rely on the credit report generated by the AECB to assess an applicant’s creditworthiness, repayment history, and existing debt obligations.

Islamic Financing Options: Islamic financing, compliant with Sharia principles, is widely available in the UAE. Islamic banks and financial institutions offer alternative products such as Murabaha, Ijarah, and Takaful, which follow Islamic financing principles of profit-sharing and avoiding interest-based transactions.

It’s important to note that while these factors influence the lending approval process in the UAE, specific lending practices can vary among banks and financial institutions. Each institution may have its own internal policies, risk assessment methodologies, and eligibility criteria for consumer lending.

Al Etihad Credit Bureau (AECB) is the official credit reporting agency in the United Arab Emirates (UAE). It was established in 2014 under the federal decree issued by the UAE government. The primary role of Al Etihad Credit Bureau is to collect credit information from various financial institutions and maintain a comprehensive credit database for individuals and companies in the UAE.

Here’s what you need to know about Al Etihad Credit Bureau:

Credit Reporting: Al Etihad Credit Bureau collects credit-related information from banks, financial institutions, and other entities in the UAE. This information includes credit card payment history, loan repayments, outstanding balances, and other credit-related data. It compiles this information into credit reports that provide a snapshot of an individual’s creditworthiness.

Credit Scores: Al Etihad Credit Bureau calculates credit scores based on the credit information it collects. A credit score is a numerical representation of an individual’s creditworthiness and is used by lenders to assess the risk associated with extending credit. Higher credit scores indicate a lower risk of default, while lower scores suggest a higher risk.

Access to Credit Reports: Individuals can request their credit reports from Al Etihad Credit Bureau to review their credit history and understand how lenders perceive their creditworthiness. Regularly checking your credit report allows you to identify any errors or discrepancies and take appropriate measures to correct them.

Credit Report Monitoring: Al Etihad Credit Bureau provides credit report monitoring services that allow individuals to receive alerts when there are changes or updates to their credit report. This helps individuals stay informed about their credit status and detect any potential fraudulent activities.

Credit Report Usage: Financial institutions, such as banks and lenders, use the credit reports and credit scores provided by Al Etihad Credit Bureau to assess the creditworthiness of individuals and make informed decisions on loan approvals, credit card applications, and other credit-related services.

Credit Information Protection: Al Etihad Credit Bureau is responsible for ensuring the confidentiality and security of the credit information it collects. It follows strict data protection protocols to safeguard the personal and financial information of individuals.

Dispute Resolution: In case of any disputes or discrepancies in the credit information, individuals have the right to raise a dispute with Al Etihad Credit Bureau. The bureau investigates the matter and takes necessary actions to rectify any inaccuracies.

It’s important to note that the information provided here is based on the general knowledge available up until my last update in September 2021. For the most accurate and up-to-date information on Al Etihad Credit Bureau and its services, it’s recommended to visit the official website of Al Etihad Credit Bureau or contact them directly.

In the UAE, credit scores are determined by the Al Etihad Credit Bureau (AECB). The credit score is a numerical representation of an individual’s creditworthiness and is used by lenders to assess the risk associated with extending credit.

Here are some key points to know about credit scores in the UAE:

Credit Score Range: The credit score in the UAE ranges from 300 to 900. A higher credit score indicates a lower risk of default and signifies better creditworthiness.

Factors Affecting Credit Score: Several factors influence an individual’s credit score in the UAE. These factors include payment history, credit utilization ratio, length of credit history, types of credit used, and recent credit inquiries. Timely payments, low credit utilization, and a mix of different credit types can positively impact the credit score.

Access to Credit Scores: Individuals in the UAE can access their credit scores from the Al Etihad Credit Bureau. By obtaining their credit scores, individuals can better understand how lenders perceive their creditworthiness and take appropriate steps to improve their credit profiles if needed.

Impact on Creditworthiness: Credit scores play a significant role in determining an individual’s creditworthiness. Lenders use credit scores as one of the factors to assess the risk associated with extending credit. Higher credit scores may result in more favorable loan terms, lower interest rates, and higher credit limits, while lower scores may result in stricter lending terms or potential loan rejections.

Credit Report Monitoring: Regularly monitoring your credit report and credit score is important to identify any errors or discrepancies and take corrective actions if needed. Al Etihad Credit Bureau offers credit report monitoring services that can help individuals stay informed about changes to their credit profiles.

It’s worth noting that credit scoring models and algorithms may vary between different countries and credit bureaus. The information provided here is based on the general knowledge available up until my last update in September 2021. For specific details about credit scores and creditworthiness in the UAE, it is recommended to consult the Al Etihad Credit Bureau or visit their official website for the most accurate and up-to-date information.

To obtain a credit report in the UAE, you can follow these steps:

Visit the Al Etihad Credit Bureau (AECB) website: Go to the official website of Al Etihad Credit Bureau at https://www.aecb.gov.ae/.

Register for an account: If you are a first-time user, you will need to create an account on the AECB website. Look for the registration or sign-up section and provide the required information, which may include your Emirates ID, personal details, and contact information. Follow the instructions to complete the registration process.

Authenticate your identity: After registering, you may need to visit an AECB customer service center or an approved partner center to verify your identity. This step is necessary to ensure that the credit report is accessed by the authorized individual.

Log in to your account: Once your account is set up and your identity is authenticated, you can log in to your account on the AECB website using your registered credentials.

Request your credit report: Within your account, you should find an option to request your credit report. Follow the instructions provided to initiate the request. You may need to pay a fee to obtain the credit report.

Access your credit report: Once your request is processed and the payment is made, you should be able to access your credit report through your account on the AECB website. The credit report will provide details about your credit history, credit accounts, payment history, and any outstanding debts.

It’s important to note that the process and requirements for obtaining a credit report may be subject to change. Therefore, it’s recommended to visit the official Al Etihad Credit Bureau website or contact their customer service directly for the most up-to-date and accurate information on how to obtain a credit report in the UAE.

Credit Report Charges in the UAE

The charges for obtaining a credit report in the UAE can vary based on the services and options chosen.

As of my knowledge cutoff in September 2021, the Al Etihad Credit Bureau (AECB) provides two main options for accessing a credit report:

One-Time Credit Report: This option allows you to obtain a single credit report at a specific point in time. The fee for a one-time credit report is typically around AED 105.

Credit Report with Monitoring: This option includes access to a credit report as well as credit report monitoring services. With credit report monitoring, you receive alerts and notifications about any changes or updates to your credit report. The fee for a credit report with monitoring is typically around AED 250 for one year.

It’s important to note that the fees mentioned above are based on general information and may be subject to change. To obtain the most accurate and up-to-date information about the charges for obtaining a credit report in the UAE, it’s recommended to visit the official website of Al Etihad Credit Bureau or contact their customer service directly. They will be able to provide you with the specific fees and payment options available.

Contact your Credit Card Issuer: Immediately call the customer service number provided by your credit card issuer. Report the suspected compromise and provide them with details of any unauthorized transactions or suspicious activity. Follow their instructions on how to proceed.

Freeze or Cancel the Card: Depending on the severity of the compromise, you may need to freeze or cancel your credit card. Freezing the card temporarily suspends its use, while canceling permanently disables it. Your credit card issuer will guide you on the appropriate action based on the situation.

Review Account Statements: Thoroughly review your credit card statements for any unauthorized transactions or charges. Note the date, amount, and merchant name of each suspicious transaction. This information will be useful when reporting the unauthorized charges to your credit card issuer.

Dispute Unauthorized Charges: Inform your credit card issuer about any unauthorized charges you find on your account. They will guide you through the process of disputing these charges and help initiate an investigation. It is important to do this as soon as possible to protect your rights as a cardholder.

Change Passwords/PINs: If you suspect that your credit card information, including passwords or PINs, may have been compromised, change them immediately. Choose strong, unique passwords and PINs for enhanced security.

Monitor Credit Reports: Regularly monitor your credit reports from credit reporting agencies to check for any suspicious activity or accounts opened in your name without your knowledge. Report any discrepancies to the respective credit reporting agency.

Update Automatic Payments: If you had any recurring payments or automatic bill payments set up with the compromised credit card, make sure to update them with your new card details or alternative payment methods.

Stay Vigilant: Continue monitoring your credit card statements, bank accounts, and credit reports for any unusual activity. Be cautious of phishing attempts and avoid sharing sensitive information unless you are certain about the legitimacy of the request.

Report to Law Enforcement: If you believe your credit card information was compromised as part of a larger data breach or if you suspect fraud, you may want to file a police report. Provide them with all relevant information and documentation to aid in their investigation.

Remember, each credit card issuer may have specific procedures and guidelines for handling compromised cards, so it’s crucial to follow their instructions and cooperate with them throughout the process. Acting promptly can help minimize potential financial losses and protect your credit standing.

Here are the contact numbers for reporting credit card fraud to some of the major banks in the UAE. Please note that these numbers are accurate as of my knowledge cutoff in September 2021, and it’s always a good idea to verify them with the respective banks for the most up-to-date information:

 

Banks	Within UAE	Calling from Outside UAE
ADCB	600 50 2030	97126210090
FAB	600 52 5500
ADIB	600543216 / 800200( Priority Banking)/whatsapp +971 600 543216
ENBD	600540000
Citibank	971 4 311 4272/  971 4 311 4653 (Citigold)
Mashreq	800-2278	971 4 4246620
Rakbank	9714 2130000	9717 2064444
SCB	600 5222 88	971 600 5222 88
HSBC	600 55 4722	97142288007
DIB	971 4 609 2222
EI	600 599 995	971600599995

 

These are just a few examples of banks in the UAE, and other banks may have different contact numbers. If your bank is not listed here, we recommend visiting the official website of your specific bank or contacting their customer service helpline to obtain the accurate and up-to-date contact numbers for reporting credit card fraud.

In the UAE, credit scores range from 300 to 900, and a higher credit score generally indicates better creditworthiness. While there is no specific threshold universally defined as a “good” credit score, a score of 700 or above is generally considered favorable and may increase your chances of getting approved for credit and obtaining more favorable terms from lenders.

However, it’s important to note that each lender may have their own criteria and standards for evaluating creditworthiness, so what is considered a good credit score may vary slightly depending on the institution.

Maintaining a good credit score is crucial for accessing credit facilities and obtaining favorable interest rates and terms on loans and credit cards. To achieve and maintain a good credit score in the UAE, consider the following practices:

Make timely payments: Pay your bills and credit card balances on time to demonstrate responsible financial behavior.

Manage credit utilization: Keep your credit card balances and overall credit utilization ratio (the percentage of your available credit that you use) as low as possible. Ideally, try to keep it below 30% to maintain a good credit score.

Maintain a healthy credit history: Maintain a longer credit history, as a well-established credit history can positively impact your credit score. Avoid closing old credit accounts unless necessary.

Diversify credit types: Having a mix of credit types, such as credit cards, loans, or mortgages, can demonstrate your ability to manage different types of credit responsibly.

Limit credit applications: Avoid making multiple credit applications within a short period, as it can negatively impact your credit score. Each credit application typically results in a hard inquiry, which can temporarily lower your score.

Remember that building and maintaining a good credit score takes time and consistent responsible financial habits. It’s also important to regularly monitor your credit report for any errors or discrepancies and take necessary steps to rectify them promptly.

Lastly, it’s important to note that credit scoring models and criteria may vary between different countries and credit bureaus. The information provided here is based on general knowledge up until my last update in September 2021. For specific details and guidance on credit scoring in the UAE, it’s recommended to consult the Al Etihad Credit Bureau or contact them directly.

A balance transfer is a financial transaction where you move the outstanding balance from one credit card to another credit card, usually with a lower interest rate. The primary purpose of a balance transfer is to save money on interest payments or to consolidate multiple credit card debts into a single account.

Here’s how a balance transfer generally works:

Eligibility: To initiate a balance transfer, you typically need to have a credit card account with an available credit limit. Additionally, the credit card issuer may have specific eligibility criteria, such as a minimum credit score or debt-to-income ratio.

Application: You apply for a new credit card that offers a balance transfer facility. This can be done through the card issuer’s website, by phone, or by filling out an application form. Make sure to read the terms and conditions, including any promotional interest rates, balance transfer fees, and the duration of the offer.

Transfer Request: Once your new credit card is approved, you inform the new card issuer about your intention to transfer a balance from an existing credit card. This is typically done by providing the necessary details, such as the account number and outstanding balance of the old credit card.

Approval and Transfer: The new credit card issuer reviews your balance transfer request. If approved, they will arrange for the transfer of the specified amount from your old credit card to your new credit card. This may take a few days to process.

Repayment: After the balance transfer is completed, you will owe the transferred amount to the new credit card issuer. You will have to make monthly payments to repay the balance, following the terms and conditions of the new credit card. It’s important to make timely payments to avoid any interest charges or penalties.

Balance transfers are great tools for those who are transactors/ paying only the minimum dues ( and not the full month dues). These customers can benefit from the interest free period offered by the bank to move their high interest cards to a lower interest card. The saves can be in the form of interest and fees.

While specific credit card offerings can change over time, here are some popular credit cards in the UAE that have historically offered balance transfer facilities:

Emirates NBD Balance Transfer Credit Card: This card from Emirates NBD often provides balance transfer options with attractive interest rates and promotional periods.

Citibank Credit Cards: Citibank UAE has a range of credit cards that may offer balance transfer options with promotional interest rates and tenures.

Standard Chartered Bank Credit Cards: Standard Chartered Bank has credit cards like the Standard Chartered Platinum Card that have provided balance transfer facilities with favorable terms.

HSBC Credit Cards: HSBC UAE offers a variety of credit cards that have featured balance transfer offers in the past, including the HSBC Cashback Credit Card.

Mashreq Bank Credit Cards: Mashreq Bank has several credit cards that have featured balance transfer offers in the past, such as the Mashreq Platinum Elite and Mashreq SmartSaver Credit Cards.

ADCB SimplyLife Credit Card: The ADCB SimplyLife Credit Card offers balance transfer facilities at competitive interest rates and flexible repayment options.

It’s important to note that availability and specific terms of balance transfer offers can change, so it’s recommended to check with the respective banks for the most up-to-date information on their credit card offerings. Additionally, carefully review the terms and conditions, including any applicable fees, interest rates, and promotional periods before opting for a balance transfer.

Balance transfers offer several potential benefits, including:

Consolidating Debt: Balance transfers allow you to consolidate multiple credit card balances into a single account. This can simplify your finances by reducing the number of payments you need to make and potentially lowering your overall interest payments.

Lower Interest Rates: One of the primary advantages of balance transfers is the potential to obtain a lower interest rate on the transferred balance. Many credit card issuers offer promotional periods with 0% or low-interest rates for a specified period, which can help save money on interest charges.

Interest Savings: By transferring your balance to a credit card with a lower interest rate, you can reduce the amount of interest you pay over time. This can be especially beneficial if you have a high-interest rate on your existing credit card.

Pay Off Debt Faster: With a lower interest rate, more of your payment goes towards reducing the principal balance. This can enable you to pay off your debt faster and potentially save money in the long run.

Simplified Payments: Consolidating your balances through a balance transfer means you only have to make one payment to a single credit card issuer, which can be more convenient and easier to manage.

Potential Rewards or Benefits: Some balance transfer credit cards may offer rewards programs, cashback incentives, or other benefits that can enhance the value of transferring your balance. This allows you to potentially earn rewards while paying off your debt.

It’s important to note that while balance transfers can offer significant benefits, there are also some considerations to keep in mind. These include balance transfer fees, promotional period limitations, potential impact on your credit score, and the need to make consistent payments to fully take advantage of the benefits.

Before opting for a balance transfer, it’s essential to carefully review the terms and conditions of the new credit card, including any fees, interest rates after the promotional period, and other factors. Assess your financial situation and determine if a balance transfer aligns with your repayment goals and overall financial strategy.

To perform a balance transfer on a credit card, you can follow these general steps:

Review Terms and Conditions: Understand the terms and conditions of your credit card, including any specific rules or limitations regarding balance transfers. Check if your credit card allows balance transfers and if there are any associated fees or promotional offers.

Identify the Transfer Amount: Determine the amount you want to transfer from one credit card to another. This can include the entire outstanding balance or a portion of it.

Compare Balance Transfer Offers: Research credit cards that offer balance transfer facilities and compare their terms, interest rates, fees, and promotional periods. Look for credit cards that provide favorable terms for balance transfers, such as low or 0% introductory interest rates.

Apply for a New Credit Card: If you don’t have a credit card with a balance transfer feature, apply for a new credit card that offers this service. Ensure you meet the eligibility criteria and provide all the required documents during the application process.

Gather Account Information: Collect the necessary information from the credit card you want to transfer the balance from, such as the card number, outstanding balance, and the account details of the issuing bank.

Initiate the Balance Transfer: Contact the credit card issuer of the new credit card (where you want to transfer the balance) through their customer service hotline or online banking platform. Inform them of your intention to perform a balance transfer.

Provide Details: Provide the required information, including the credit card number, outstanding balance, and account details of the existing credit card. Additionally, you may need to specify the transfer amount or any specific instructions.

Verify Transfer Terms: Confirm the terms and conditions of the balance transfer, including any associated fees, interest rates, promotional periods, and repayment terms. Clarify any doubts or questions you may have before proceeding.

Await Processing: The credit card issuer will process the balance transfer request. This may take a few days or longer, depending on the issuing bank’s procedures.

Monitor Progress: Keep track of the balance transfer process. Ensure that the balance transfer is completed as expected and that the outstanding balance is reflected on the new credit card.

Repayment and Management: Once the balance transfer is successful, make regular payments according to the terms and conditions of the new credit card. Consider developing a repayment plan to manage the transferred balance effectively.

Remember, the specific process and requirements for balance transfers may vary depending on the credit card issuers and their respective policies. It’s important to carefully review the terms and conditions of both credit cards involved and contact the respective customer service if you have any questions or need assistance with the balance transfer process.