638 Credit Score – Here’s What You Need to Know
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Are you struggling with a credit score of 638 and wondering what it means for your financial future? You’re not alone. Many people find themselves in a similar situation, facing challenges when applying for loans or credit cards.
A score in this range can raise concerns about your creditworthiness, leading to potential rejections and higher interest rates. But what does a 638 credit score really mean, is a credit score 638 good or bad, and how can you turn things around?
In this article, we’ll explore the implications of having a 638 credit score, the financial opportunities it can provide, and practical steps to improve your score. By the end, you'll have a clearer understanding of how to navigate your credit landscape and enhance your financial prospects.
Is 638 a Good Credit Score?
A credit score of 638 is generally considered ‘fair’, with a 2-star rating in the UAE's scoring system. It typically reflects issues such as late payments, high credit utilisation, or a limited credit history. Therefore, it raises questions about your creditworthiness. However, it’s important to note that even with a fair score, you can still access certain benefits.
What Can a 638 Credit Score Get You?
Despite the concerns associated with this aecb credit score, you can still apply for credit cards and loans. However, keep in mind that the interest rates can be a bit high as compared to those offered to individuals with excellent scores.
638 Credit Score Credit Card
While obtaining a standard credit card may be challenging with a 638 credit score, there are still various options available —
| Credit Cards | Minimum Income (AED) | Annual Fees (AED) |
|---|---|---|
| Dubai First Low-Rate Card | 5,000 | 300 |
| Dubai First Low-Rate Card for UAE Nationals | 5,000 | 300 |
| Emirates NBD Mastercard Titanium Credit Card | 5,000 | Free for life |
| Abu Dhabi Commercial Bank ADCB 365 cashback credit card | 8,000 | Free for 1st year |
| Emirates NBD Dnata Platinum Credit Card | 8,000 | 525 |
638 Credit Score Car Loan
Getting a car loan with a 638 credit score can be difficult, often resulting in high interest rates. If you need a car loan urgently, consider having a co-signer with a better credit score to improve your chances of approval.
| Car Loan | Minimum Salary (per month) | Fixed Rate (p.a.) | Reducing Rate (p.a.) |
|---|---|---|---|
| RAKBANK Car Loans | AED 5,000 | N/A | N/A |
| Abu Dhabi Commercial Bank Car Loan | AED 5,000 | 1.99% | 3.65% |
| First Abu Dhabi Bank Islamic Car Finance (UAE Nationals) | AED 7,000 | 3.19% | Starting from 5.99% |
| First Abu Dhabi Bank Islamic Car Finance (Expats) | AED 7,000 | 3.24% | 6.07% |
| HSBC Car Loan | AED 10,000 | N/A | N/A |
638 Credit Score Personal Loan
Loans options with this credit score in UAE are limited, and any loans you do secure are likely to come with high interest rates and additional fees. It's advisable to carefully consider whether the terms are manageable.
| Personal Loan | Minimum Income (AED) | Fixed Return (p.a.) | Reducing Rate (p.a.) |
|---|---|---|---|
| Deem Finance Loan | 5,000 | N/A | 15.99% - 34.99% |
| Emirates NBD Loans for Expatriates | 5,000 | N/A | Starting from 5.99% |
| Dubai Islamic Bank Loan | 7,000 | 4.90% | 5.99%-21.99% |
| Commercial Bank of Dubai Quick Loan | 8,000 | Starting from 7.60% | Starting from 14% |
| Abu Dhabi Islamic Bank Personal Finance | 8,000 | N/A | N/A |
How to Increase Your Credit Score From 638?
Improving the AECB credit score takes time, but it is achievable with consistent effort. Here are some effective strategies:
- Opt for a Secured Credit Card: Start rebuilding your credit by using a secured card responsibly.
- Pay Bills on Time: Ensure all credit card and utility bills are paid promptly.
- Reduce Credit Utilisation: Avoid maxing out your credit limits; aim to use less than 30% of your available credit.
- Limit Credit Applications: Don’t apply for multiple loans or credit cards simultaneously, as this can further lower your score.
It takes a little extra effort to improve your credit score and go from fair to excellent. If you are also determined to do that, read our detailed article on ways to improve your credit score in UAE.
Check Your Credit Score for Free
UAE residents can check their credit scores for free through Policybazaar.ae or you can also visit the official site of al etihad credit bureau.
This service enables you to obtain your score without any costs when applying for loans or credit cards.
By entering your basic information you can easily get your credit score in minutes.
FAQ's About 638 Credit Score
Ans: A 638 credit score is generally considered not okay; it falls into the ‘fair’ or ‘low’ category. This score indicates a higher risk for lenders, which can complicate your ability to secure credit or loans and may result in higher interest rates.
Ans: In the UAE, an acceptable credit score typically starts at around 651, which is classified as "medium." Scores between 651 and 710 are seen as more favourable for obtaining loans and credit products. Higher scores indicate better creditworthiness.
Ans: Yes, you can still get a loan with a 638 credit score, but your options may be limited. Loans may come with higher interest rates and less favourable terms. Lenders may also require additional documentation or collateral to mitigate their risk. It’s advisable to carefully assess the terms before accepting a loan offer.
| Credit Score for different types of Loan | |||
|---|---|---|---|
| Credit Score for Personal Loan | Credit Score for House Loan | Credit Score for Car loan | Credit Score for Student Loan |
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