Two bankers: “The Report” is improving by paying obligations and reducing the number of unpaid funds and balances
Multiple finances and “cards” and the frequency of using their full limit reduce the “credit rating”
Reducing the limit on unused credit cards contributes to an improvement in the credit assessment.
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Tamer Abu Bakr: “Delaying the payment of card payments, even if one dirham is less than the required amount, is considered a default by the customer.”
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Two bankers said that the multiplicity of finances and credit cards, delaying the payment of their monthly payments, or using credit cards to their full limit, frequently, all of this reduces the credit rating of individuals.
They confirmed to "Emirates Today" that the credit rating is dynamic and can change according to the latest information in the credit report, and there are several things that help improve the credit assessment, for example, paying obligations, on or before their due date, and reducing the number of finances and cards. and outstanding balances, as well as reducing the limit on unused credit cards.
In detail, the head of the Individual Finance Unit in the Credit Risk Department at Abu Dhabi Islamic Bank, Sultan Ali Al Marzouqi, said that “the purpose of the credit assessment provided by (Al Etihad Credit Bureau) is originally to assess the financial solvency of the company or individual, which is a document that includes information about The personal identity of the individual or company, detailed information about his cards, the financing and other facilities granted to him, the history of payments and returned checks, and other information.
Al-Marzouqi explained that "repeated default or delay in making payments beyond the due date, and the presence of a large number of finances and cards, or the use of the entire card limit, frequently leads to a reduction in the credit rating."
He added: “Therefore, we recommend the necessity of clearly dividing the creditworthiness factors into personal and financial factors, in order to accurately assess creditworthiness, as well as identifying some personal factors such as reputation, among the personal factors, and that any creditworthiness model includes the most important personal factors, which is the relationship with Banks, sovereign bodies, and banking inquiries.
He pointed out that according to Al-Etihad Credit Bureau, the credit rating is dynamic and can change according to the latest information in the credit report, pointing out that there are several things that may help improve the credit assessment, including paying financial obligations on or before the due date, and avoiding bounced checks. Reducing the number of funds and cards, reducing unpaid balances and the ceiling of unused cards.
He said: "The aforementioned elements mainly contribute to improving the credit behavior, which is positively reflected on the evaluation, as the final evaluation is calculated through approved equations that take into account several model variables according to the best international approaches, in addition to specific data and patterns in the UAE market and legislation. related to.
We also always advise our customers, who believe that the report contains incorrect information, to contact the bank to correct the false information.”
For his part, the banker, Tamer Abu Bakr, said that “the delay in recurring payments, as well as exceeding the credit limit of the card, and the multiplicity of cards reduce the customer’s credit evaluation number, and negatively affect his ability to take various funds.”
He added, “Delaying the payment of credit card payments, even if one dirham is less than the required amount, is considered a default by the customer and his irregularity in paying his payments at the required time. This is due to the reduction of the credit score.
And he indicated that “the period of the customer’s delay in making credit card payments also appears in the credit report, where the delay is classified from (zero to 30 days, and from zero to 60 days) and so on, and any arrears negatively affect the credit assessment number,” noting that “Using the full credit card limit, and exceeding this limit frequently, lowers the customer’s credit rating, so you should pay attention not to exceed this limit per month, as well as not to use it completely.”
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