How to Manage Missed Payments in the UAE: Hidden Costs on Your Credit Score

Dubai: Missed payments, maxed-out credit cards, and unpaid fines are significant threats to your credit score in the UAE, according to financial experts.

These common oversights can lead to serious long-term financial consequences.

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Late payments on credit cards, loans, and utility bills are reported to the Al Etihad Credit Bureau (AECB). Even a single missed payment can negatively impact your score if it remains unpaid for over 30 days.

Additionally, using more than 30% of your credit limit can signal financial distress, further lowering your rating.

Bounced cheques, especially for rental payments, can escalate into legal issues, compounding the damage to your credit profile.

Experts advise that even seemingly minor issues, such as unpaid parking fines or forgotten accounts, can lead to significant credit problems.

To maintain a strong credit score, experts recommend using credit responsibly, keeping balances low, and regularly checking your credit report for errors.

Building good financial habits is essential, as a strong credit score not only influences loan approvals but also affects rental agreements and insurance terms in the UAE.

As the credit system evolves, residents are encouraged to prioritize their credit health to ensure long-term financial stability.

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