Your UAE credit score to soon improve faster

UPGRADED SCORING DESIGNED TO SPUR POSITIVE BEHAVIOUR

- BY NIVETHA DAYANAND Assistant Business Editor

Consumers who default on payments will soon be able to rebuild their credit scores much faster as the Etihad Credit Bureau prepares to launch a redesigned version of the UAE's credit scoring system.

Currently, individuals who default on loans or credit cards can remain in the “red zone” for up to 24 months before their scores begin to recover. Under the new system, scheduled for launch before mid-2026, that recovery period could shorten to as little as six months, depending on improved payment behaviour.

“This is a major shift from the old model,” said Marwan Ahmad Lutfi, Director General of Etihad Credit Bureau.

Better behaviour tracking

Lutfi said the upgraded scoring algorithm is designed to encourage positive financial behaviour rather than penalise borrowers for prolonged periods. “We don’t believe that penalising someone for years is the way to improve financial behaviour,” he said.