AURA FINCORP LIMITED

03

Aug

UAE Credit Score Explained: How to Check, Improve, and Use Your AECB Report

2023-08-03 06:24 AM

UAE Credit Score Explained: Range, Requirements, and How to Improve ItIn the UAE, your credit score is more than just a number—it’s the foundation of your financial credibility. Managed by the Al Etihad Credit Bureau (AECB UAE), this three-digit score ranges from 300 to 900 and is used by banks, lenders, and even telecom providers to assess your creditworthiness.Whether you’re applying for a loan, credit card, or mortgage, understanding your UAE credit score is essential. This guide explains the UAE credit score range, what affects your AECB score, how to check it, and practical ways to improve it.What is a UAE Credit Score? A credit score in UAE is a three-digit number ranging from 300 to 900. This score is calculated by AECB, and if you have a higher score, it shows your trustworthiness in timely loan repayment and meeting other financial commitments. Generally, a score above 700 is considered good, and as it shows you’re more likely to fulfil commitments made to lenders, this increases your chances of loan approval with better terms. Banking and finance service providers in the Emirates use this score to assess an applicant’s ability to repay the loan. You can check this score on the official AECB website or on the TAMM portal. Not only does a higher credit rating help you get loan approval more easily, but it also increases the chances of securing favorable interest rates. However, a low score only leads to rejections. The Authority Behind Credit Score in UAEAs mentioned above, the authority behind the UAE credit score is AECB. This federal entity is fully owned by the Emirati government and is responsible for calculating credit scores. From collecting and providing credit information through several sources to generating reports with all the details, this authority scores or provides credit ratings to individuals and companies in the country. It collects the necessary details from banks, telecom companies, and other resources, and after analyzing them, creates a single report. While some banks operating in the country only share their customers’ data occasionally, others, like Union National Bank, provide updates on a daily basis. The reports provided by the authority contain personal identity information, details about credit cards and loans, and a detailed record of payment history. Moreover, details regarding any cheque that has bounced and information on court-ordered payments are included in the report. Not only does this report have information on current loans, but it also shows past loans and their application status details, like whether they are approved or rejected. What is a Good UAE Credit Score?Before understanding the factors that influence the AECB credit score, let’s first learn what a good credit score is and its impact on your financial health. As we discussed above, this ranges from 300 to 900, and if you have a higher score, your chances of securing a loan approval increase. Anyone having a credit score above 700 is considered good, and it shows your reliability to the borrower. If you have a score between 300 and 540, the lender will disapprove your request or might lend you money at a very high risk. Moreover, scores between 541 and 650 and 651 and 710 are considered bad and fair risk, respectively. Generally, anyone with a score of 711-745 is considered a reliable borrower; however, with a score between 746 and 900, your profile can secure a place under the excellent or very low risk category. How is the UAE Credit Score Calculated?Are you paying your bills late or defaulting on loans? You’re damaging your credit rating, which can cause irreparable financial damage. You must already be aware that the factors that are used to calculate this score differ in each country. However, for Emirati residents, it’s calculated based on the following factors: 1. Bill Payment HistoryIf you’re living in the Emirates and have not paid any bill before its due date, it has already affected your credit score negatively. Paying bills on time is one of the major factors used by AECB to calculate this score. You must understand the importance of clearing your bills on time, as the payment history accounts for 35% of the AECB credit score. 2. Effect of Credit Card BalancesThe level of debt shows the balance you need to repay on your credit cards. In simple words, it is the difference between your card limit and the amount you have spent. If you regularly spend more than the maximum credit card limit, it negatively affects your AECB credit score, as this factor makes up nearly 30% of your score. If you want to improve credit score UAE, you need to understand that a good bill payment history and low debt level are the two most important points to focus on. 3. How Long You’ve Had CreditAnother factor that is used to calculate UAE credit score is the credit history age, which shows how long you have been using credit, like credit cards or loans. Generally, the average age of all your accounts and your oldest account is considered. This factor is important, as it makes up nearly 15% of your total credit score. If you’ve managed a good credit score for a long time, your score will be higher. 4. Types of Credit AccountsYou might be aware that the kinds of credit accounts you have also matter for your credit score calculation. If you have managed your accounts well, it will help you secure a higher score. This factor contributes to nearly 10% of your total score. In addition to this, your age, nationality, and overall financial activity also play a significant role in credit score calculation. 5. Credit ApplicationsIf you have applied for multiple loans and credit cards in a short period, it negatively affects your credit score. As each credit application creates a hard inquiry, it shows lenders that you’re not reliable and might not fulfill your responsibilities as a trusted borrower. So, you should only apply for loans or credit cards when necessary. 6. Credit Report AccuracyIf any wrong information is found on your credit report, your chances of getting a good credit score can be reduced. From inaccurate balances to information about accounts that don’t belong to you, any error can negatively affect your AECB credit score. To avoid this mistake, you should regularly check your credit report, and if you find any inaccurate details, you should contact your bank or directly report it on the authority’s official site. How to Improve Credit Score UAENow that we have learned the factors affecting the calculation of your credit score, next we need to discuss the ways to improve it. Here are some useful tips to secure a good UAE credit score: 1. Check Your ReportAs we discussed above, you must regularly review your credit report from AECB. If you find any incorrect information, you must not ignore it. The incorrect details on the report can lead to serious problems, so you should report it immediately to the authorities.2. Pay Bills on TimePayment history is the main factor in credit score calculation, so make sure you make all bill payments and loan EMIs timely. You can schedule alerts to ensure you never miss the deadlines to pay loans or utility bills. 3. Limit New ApplicationsYou should only apply for a new credit card when you really need it, as requesting several in a brief time is considered a sign of financial instability. 4. Manage Credit Cards WiselyAmong the effective credit score-improving tips, managing credit cards wisely is important. If you have an old account with well-maintained credits, you should not close it, as a longer credit history positively affects the credit score. You must try to always use less than 30% of your total available credit limit.Take Control of Your UAE Credit Score with Hisab TaskmasterMaintaining a good UAE credit score shows your reliability as a borrower. You need to understand the factors that can negatively affect this score and implement tips to achieve financial stability. You can get your credit report and check your score from the official site of AECB or through the TAMM portal. However, it might be difficult to monitor your credit.With HISAB Taskmaster CA Advisors, you can get expert support to manage a good AECB credit score. Our professionals have in-depth knowledge of factors that affect credit rating, and can help you by providing reliable solutions. From monitoring your report to identifying areas to improve, we can help you with everything needed to make better financial decisions and improve your credit score.

03

Aug

Indian Rupee Depreciation Boosts UAE Remittance Activity

2023-08-03 06:21 AM

IntroductionThe continuing depreciation of the Indian Rupee (INR) against the UAE Dirham (AED) is reshaping remittance strategies for NRIs living in the UAE. For many Non-Resident Indians, this shift presents an opportunity to send more money back home, supporting families while taking advantage of favorable exchange rates. Understanding how these fluctuations impact remittance decisions is crucial, particularly for those who regularly transfer funds to India. This article aims to delve into these changes and offer insights on how NRIs can adapt their strategies to maximize benefits.Background and ContextIn recent months, the Indian Rupee has seen significant weakening against the UAE Dirham, contributing to increased remittance activity. Historically, exchange rates have played a critical role in determining remittance volumes. When the Rupee weakens, NRIs find that their money stretches further, leading them to send higher amounts back home. This trend can be traced back through various periods of currency fluctuation, where remittance volumes surged in response to a stronger Dirham.Exchange houses have always been pivotal in this process, providing channels for transferring funds swiftly and effectively. As bridges between expatriates and their families, these institutions facilitate billions in transactions annually, with the UAE being a major hub for such activities. For NRIs, leveraging these services becomes even more strategic during periods of currency volatility.What Exactly ChangedThe Indian Rupee’s value has seen significant shifts recently, with key milestones marking its depreciation against the US Dollar and the UAE Dirham. On September 5, 2025, the INR hit an alarming low of ₹88.36 against the USD, setting the stage for further slides. By December 3, 2025, it weakened to ₹90 against the USD and ₹24.50 against the AED, marking one of the weakest positions in recent history.These changes have had a tangible impact on remittance volumes, with reports indicating a 15-20% increase in transfers. NRIs are capitalizing on these favorable rates, consequently boosting the inflow of funds into India. This upward trend can be attributed directly to the strategic remittance adjustments being made by NRIs in response to the changing rates.Impact on IndividualsFor NRIs, the current exchange rate scenario translates into increased remittance value. If you’re a salaried expat in the UAE earning AED 15,000, the weaker Rupee means you can send more money home without increasing the amount transferred from the UAE side. This excellent opportunity allows families to manage larger expenses, such as healthcare or education, more comfortably.Industry experts, like Ali Al Najjar, highlight the strategic advantage this presents. “NRIs can effectively boost their support for families by leveraging these exchange rate benefits,” he notes, emphasizing the value of financial planning during such periods. Families who might have been limited in funding education or healthcare are experiencing a respite, with more funds available due to the enhanced conversion rates.Impact on SMEsThe boost in remittance flows also positively affects Small and Medium Enterprises (SMEs) in India. Remitted funds often support local economies by enhancing consumer demand. This increase in disposable income enables families to spend more on local goods and services, thereby promoting business growth.The potential for sustained growth appears promising as these inflows contribute to higher cash flows for local businesses. Enhanced spending can lead to broader economic benefits, with local economies seeing a ripple effect as remittance-funded consumption creates new growth opportunities.What You Should Do NowFor NRIs, the current economic environment suggests the need to re-evaluate remittance timing. Strategically sending money home while rates are favorable can yield significant benefits. Engaging with financial advisory services can offer insights into optimizing these transfers, ensuring families get the most out of each transaction.Exchange houses, on their part, need to adapt as well. Enhancing customer service during high transaction volumes and introducing value-added services can distinguish them during competitive periods. For NRIs, leveraging these enhanced services could result in more efficient and rewarding remittance processes.Risks and ConsiderationsCurrency fluctuations remain a double-edged sword, offering opportunities but also posing risks. The potential for further volatility in the exchange rate could impact remittance values and should be monitored carefully. Economic and geopolitical uncertainties can influence currency stability, adding layers of complexity to financial planning.Additionally, regulatory environments could shift, with institutions like the Central Bank of the UAE and the Reserve Bank of India potentially introducing new guidelines. Staying informed about any such changes is crucial for NRIs to maintain effective remittance strategies.ConclusionThe depreciation of the Indian Rupee against the UAE Dirham presents both opportunities and challenges for remittance strategies. By understanding the current environment, NRIs can make informed decisions that benefit their financial health and support their families in India. Keeping a watchful eye on currency trends and adapting strategies accordingly will be essential. As the landscape continues to evolve, NRIs should remain proactive, ensuring their remittance strategies align with both current conditions and future expectations.

03

Aug

Abu Dhabi Police recover Dh140 million from online fraud cases

2023-08-03 06:18 AM

Abu Dhabi: Abu Dhabi Police have recovered Dh140 million obtained through online fraud and returned the funds to their rightful owners over the past two years. The force has handled 15,642 cases of cybercrime, underscoring the growing scale of digital threats in the emirate.The announcement was made during a press conference attended by senior officials, including Brigadier Rashid Khalaf Al Dhaheri, Director of Criminal Investigations Department at Abu Dhabi Police, Colonel Saif Ali Al Jabri, Deputy Director of the Community Police Department, and other senior police officers.During the conference, Abu Dhabi Police launched a new edition of the "Be Careful" campaign to warn the public about the latest forms of cybercrime. The campaign is designed to raise community awareness about evolving forms of cybercrime. It also supports the National Cybersecurity Strategy through an educational programme that informs the public about digital threats and promotes confidence in government e-services.The campaign covers nine key areas of cyber fraud, including phone scams, fake links, risks of downloading remote access software, paying deposits for premium numbers or vehicles, fake job offers, accepting friend requests from unknown users on social media, misleading online advertisements, fraudulent property deals, and investment scams.Authorities emphasized that the proactive approach aims to strengthen community security, encourage preventative measures, and empower residents to protect themselves from increasingly sophisticated cyber threats.

29

Jul

Rev Up Your Journey: A Guide to Car Loans

2023-07-29 11:32 AM

I wouldn’t say it’s harder to get a mortgage if you’re self-employed, but it’s less straightforward than for an employed person. You’ll find that lenders will ask you for more documentation. They’re potentially going to look at your income a little bit more closely, compared with an employed person who will just have to provide payslips and maybe some bank statements.One of the outcomes of Covid last year was that it took a while for mortgage providers to start lending to more self-employed clients. There were minimum deposit restrictions in place. Some lenders still have these – they will ask for a 25% deposit if you’re self-employed.But most are going back to the norm now.Lenders vary in terms of how much they will lend self-employed people and the type of self-employed clients they will accept. That just means you need to do a bit more research before you apply to a lender.What if I only have one year’s accounts?You should still be able to get a mortgage with just one year’s accounts. The majority of lenders usually want two years’ history as self-employed, but some will accept a year’s self-employed income.There are even lenders who in some scenarios would accept the self-employed from day one. For example if someone who had one year’s accounts as an accountant decided to be a self-employed builder, they might struggle because there’s no work experience history. But an employed accountant moving to become a self-employed accountant is more likely to be accepted with a year’s accounts.Imagine a doctor that has worked for the NHS for five years is buying into a local, established practice. Many lenders would consider that from day one because the practice already has history. So it is definitely possible to get a mortgage with one year’s accounts, and sometimes less.As brokers we’re here to help. We’ve got a really good understanding of which lenders are most suitable for every type of client.Are self-cert mortgages still available?Thankfully not, but we have seen some companies try to set up self-certs abroad. I would avoid those companies like the plague.Self-cert mortgages are not a good idea – back in 2008 a major factor in the credit crunch for the mortgage world was self-cert, and so they’re not available anymore.Can you get a joint mortgage if one person is self-employed?It does help to have someone else on the mortgage who’s employed, particularly when it comes to credit scoring. It will also increase the amount you can borrow, because the lender will base the loan on your combined incomes.One thing to do before you apply for a mortgage if you’re self-employed is to have a look at your credit score and register on the electoral roll. Some lenders might score you more harshly when you’re self-employed as the risk to them is higher.With mortgages for the self-employed a broker really comes into their own – we can look at all the different options.What’s the difference in mortgages for a sole trader and a limited company director?A lot of this is to do with how the lenders treat you – firstly in terms of how they calculate your income. If you’re a sole trader or running a partnership, the lender will usually take two years worth of your tax returns. They’ve got various names: tax calculations or SA302s. The lender will usually work off your net profit, which is your income after your expenses. They will usually take either an average of your last two years’ net profits or use your latest year if there’s a steady increase.The main difference for a limited company is that even though you’re self-employed, you’re actually employed by your limited company and receive your income via salary and dividends. The majority of lenders will use your two years’ salary and dividend figures from your tax calculations.But there are also lenders that will disregard your salary and dividends and go for your net profits instead – that will often allow you to borrow a lot more. So, as a limited company the way lenders can view you will vary considerably.How much can a self-employed person borrow on a mortgage?Where affordability can vary is whether the lender uses the average of your last two years or your latest year. The average income might work out at, say, £25,000 but if your latest year is £40,000 that could be quite a big difference.But it’s with limited companies that we see the biggest difference in affordability. A limited company director may have taken a salary and dividend of say £40,000 – some lenders will take that as the income. But perhaps their net profit is £100,000 a year. Other lenders will take that as your income – which means a massive difference in how much you can borrow. NatWest or Halifax will use salary and dividends while Coventry and HSBC, for example, will use the £100,000.If you want a rough idea of how much you could borrow, the very general rule is about 4.5 times your income, up to a maximum of about 4.75 and, in some very rare instances, up to 5 times.

29

Jul

Unlock Your Dream Home: Explore Our Home Loan Options.

2023-07-29 11:29 AM

28

Oct

USA mortgages: ‘How did a $42,500 loan turn into a $477,000 debt?’

2020-10-28 12:57 AM

Cooper’s parents died in 2021, and their house was last year valued at $750,000, so – as things stand – he and his sister will have to hand over most of that to the bank. He says he feels certain his late parents did not realise that that $42,500 loan could spiral to close to $500,000 and “cost their kids their inheritance”.However, the bank says it recommended at the time that customers took independent financial advice to ensure they understood the product and that it was right for them, and adds that in this case, solicitors were instructed by the borrowers.The Coopers are among hundreds – probably thousands – of families whose lives have been blighted by shared appreciation mortgages (Sams). This was a type of home loan that was only on sale for a brief period, between 1996 and 1998, and only available from two banks, Bank of Scotland and Barclays.These loans were ostensibly aimed at helping “asset-rich, cash-poor” older people release some of the value locked up in their homes. They typically allowed people to borrow up to 25% of the property’s value, and usually there were no repayments to make during the lifetime of the loan.In return, people were required to pay back the original amount when the mortgage was repaid, or when they died and the house was sold, plus a share of any increase in the value of their home.This share was usually worked out on a three-to-one basis – so if you borrowed 25% of the value, you would be in line to hand over 75% of the future growth in value.Of course, in the years since those mortgages were sold, house prices have rocketed, leaving people facing massive repayments if they want to move – or, as in the case of Cooper, leaving the offspring of those who signed up with a huge and costly headache.

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