UAE residents able to buy credit history report ‘in weeks’
ABU DHABI // Looking for a bank loan? Then make sure you have a clean credit history.
From next month lenders will be able to check that applicants are not already in too much debt and have kept up payments on previous loans.
Potential borrowers can also buy a copy of their own credit report to ensure that the information held by the new Al Etihad Credit Bureau is accurate.
“When operations commence in the first quarter of 2014, individuals will be able to register at the bureau and purchase their reports,” said Marwan Lutfi, the bureau’s chief executive.
Bank customers will also be advised about the importance of maintaining a good credit history as the bureau starts work in the next few weeks.
Hundreds of bank staff have been trained by the bureau to understand how the new system works and to explain to customers the value of a clean credit score,
The reports will cover only people’s credit history in the UAE, Mr Lutfi said. There will be no information about debt incurred abroad.
The bureau is intended to provide more stability to the financial system by giving banks more information about the creditworthiness of consumers and companies they are considering lending to. Commercial credit reports will be made available during the second phase of operations later in the year.
The final stage in the scheme will be credit scoring, the system used in most other countries with a credit bureau to determine a potential borrower’s level of credit worthiness. Credit scoring will be introduced at the end of next year.
“The credit score system is based on a combination of historical credit and demographic information,” Mr Lutfi said.
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