Al Etihad Credit Bureau presents the “Expense to Salary Ratio” indicator within the credit reports

Al-Etihad Credit Bureau announced that the credit reports now include the "Expense to Salary Ratio" indicator, which shows the individual's financial obligations against the monthly salary provided to the company by banks, making it an additional measurement tool for banks and financial institutions to study creditworthiness and the ability to bear expenses for individuals.

Speaking about the new feature, Marwan Ahmed Lutfi, CEO of Al Etihad Credit Bureau, said: “The credit reports of banks and financial institutions show the individual’s attractiveness and patterns of behavior in committing to financial payments, as they are also important for other parties such as real estate management companies and telecom companies. The addition of the “expense to salary ratio” indicator to the credit reports provided by Al Etihad Credit Bureau is a new step in our efforts to provide useful data-driven insights to assist lenders in the process of assessing the creditworthiness of individuals, taking into account their monthly bank and non-bank financial obligations, such as bills Electricity, water and telecommunications utility bills.

This new feature in our credit reports helps to know the extent to which individuals can bear the expenses by providing valuable information about the monthly obligations as a percentage against the monthly salary provided to the company by the banks.”

The "expense to salary ratio" appears in credit reports as an indicator of a percentage ranging between 0% and +100%, and represents an individual's financial obligations against the reported salary.

The information on the “expenses-to-salary ratio” takes into account the payments due to the existing credit facilities, part of the existing credit card limits, in addition to the bills for telecommunications, water and electricity services, in return for the individual’s salary, which is provided periodically within the framework of regular information supply operations to the Al Etihad Credit Bureau. .

Lutfi added: “While the “expense to salary ratio” indicator provides a new view for financial institutions and credit report users about the spending behaviors of individuals, it also represents a useful measurement tool for individuals themselves to measure and review their spending behaviors and habits, and to search for more financially responsible alternatives. When the percentage of their monthly expenses is high for the monthly salary they receive.

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