What Does a 644 Credit Score Mean?

The credit score is a rating used to evaluate your creditworthiness. In the UAE, credit scores typically range between 300 and 900. The higher the score, the more likely you are to obtain credit as the better your creditworthiness.

Credit scores are crucial for various purposes in the UAE such as evaluation by lenders, landlords, employers, and insurance companies to determine financial responsibility. Credit scores can also affect the interest rates and terms offered to individuals on loans and credit cards.

644 Credit Score in the UAE - An Overview

In the UAE, a credit score of 710 or higher is considered good. Lenders typically view scores above this as excellent, while scores below 650 are considered bad. Getting loan and credit card applications approved, thus, can be challenging for individuals with a credit score of 644.

The approval of credit facility applications with a 644 credit score varies from one bank to another. If the lender is willing to take on customers with low creditworthiness, you may be able to access some credit facilities from them even with such scores. However, note that even if you are approved, you will likely be charged a higher interest rate compared to customers with better credit scores.

Refer to the following table to know the categorisations of different ranges of credit scores -

Credit Score (Range)	Category	Star Equivalent
300-540	Very low	1
541-650	Low	2
651-710	Medium	3
711-745	High	4
746-900	Very High	5

Credit Cards for 644 Credit Score

With a credit score of 644, you have the option to apply for both secured and unsecured credit cards. Generally, with a score of 644, the more accessible option would be secured credit cards, where financial institutions require you to deposit a collateral sum equal to the credit limit of the card.

This collateral serves as security for the bank if you are unable to make timely payments, in which case they can use it to cover your due credit card bill. While it's still possible to get approved for unsecured cards with a score of 644, it's likely that you will receive high-interest rates.

Personal Loan for 644 Credit Score

Compared to other credit products, obtaining a personal loan with a 644 credit score is relatively more straightforward. Lenders typically accept loan applications from individuals with lower credit scores.

However, you may be subject to higher interest rates due to the increased risk associated with lending to individuals with lower credit scores. Other factors, such as the amount of the loan, loan tenure, and monthly income, may also influence the approval of your personal loan application.

Homes Loans for 644 Credit Score

In the case of mortgage loans, financial institutions typically reject loan applications from individuals with low credit scores. Due to the higher loan amount associated with home loans, it is challenging to secure a loan with a low credit score of 644.

However, in rare cases, banks may agree to provide a mortgage loan but may require collateral, impose significantly high-interest rates, or offer lower loan amounts. Nevertheless, it is advisable to improve your credit score first to strengthen your chances of approval.

Auto Loans for 644 Credit Score

Obtaining a car loan with a credit score of 644 can be moderately challenging. Lenders typically offer higher interest rates and lower loan amounts for individuals with a 644 credit score. If you are struggling to get your car loan approved due to a below-average credit score, it may be worthwhile to wait and improve your credit score before applying for a loan. Additionally, you can search for financial institutions that offer car loans in exchange for collateral, which can increase your chances of loan approval and secure better loan terms.

Insurance Plans with 644 Credit Score

Although the impact of credit score on insurance premiums is less pronounced than credit/debt, insurance companies generally consider your credit score when determining the rate of your insurance premium. 

If you have a credit score of 644, you may be subject to higher premium payments. However, keep in mind that any improvement in your credit score can positively impact the prices of your insurance plans. 

Effective Tips to Improve Your 644 Credit Score

It is always advisable to maintain a good or excellent score to avoid any trouble in obtaining loans and credit cards. If you have a 644 credit score, here are some efficient ways to enhance your credit score: 

• Improve Your Bill Payment History - Bill payment history is a crucial factor in determining your credit score in the UAE, as it accounts for up to 35% of your overall score. This includes payments made towards credit cards, loans, mortgages, utilities, and other bills. It's essential to note that lending institutions consider the past five years of your payment history. A positive payment history demonstrates reliability and trustworthiness with credit. Late payments or bill defaults, however, can negatively impact your credit score and make it challenging to obtain credit in the future. To improve your bill payment history, make sure that all your payments, whether for credit cards, loan instalments, or utility bills, are made on time. 
• Optimise Your Credit Usage - Credit usage accounts for 30% of your credit score in the UAE. Your credit usage habits have a significant impact on your credit score. Missing payments, reaching the maximum credit limits, and having numerous outstanding accounts can lead to a lower credit score. On the other hand, using credit responsibly, making timely payments, and maintaining a low credit utilisation ratio can improve your credit score. For this, you can reduce your credit card usage or get a new credit card, which will increase your total limit and decrease your utilisation ratio. With that said, avoid getting a new credit card if you are barely able to manage your existing credit card bills.
• Clear Your Existing Debts and Loans - Paying off existing loans on time is crucial for improving credit scores, as it indicates your creditworthiness and can boost your credit score significantly. Clearing loans also reduces the amount of debt and improves the debt-to-income ratio, which also plays a crucial role when you apply for new debt. Reducing debt can free up more funds to achieve other financial goals. Moreover, paying off loans can help you establish a positive credit history, which is another significant factor in credit scores.
• Limit Your Loan and Credit Card Applications - By limiting your applications for loans and credit cards in the UAE (reducing the number of hard inquiries on your credit report, in turn), you can improve your credit score. Hard inquiries are made when a lender requests a credit report to assess the risk of lending to an individual. While an occasional hard inquiry doesn’t make much impact, having too many hard inquiries can lower your credit score. By reducing the number of applications for loans and credit cards, you can lower the number of hard inquiries and, consequently, avoid a reduction of your credit score. 
• Avoid Making Frequent Credit Inquiries - While it's wise to monitor your credit score regularly, excessive checking can potentially have adverse effects. It's advisable to review your credit score every three months or so to keep track of it.

How to Check Your Credit Score for Free?

The al etihad credit bureau (AECB) is authorised to release credit scores for all individuals and companies. If you wish to obtain your credit score via AECB, you must pay a certain amount, that is, AED 84, including VAT (for individuals) and AED 157.50 (for companies) - both inclusive of VAT. 

With policybazaar.ae, however, you can now check your credit score range for free.

Here are the steps to check your credit score via our digital platform -

1. On our website - policybazaar.ae - move to the ‘Banking Products’ drop-down menu.
2. Tap on the ‘Check Free Credit Score’ option.
3. Type in the required details and proceed with the on-screen prompted instructions.
4. Once generated, you would be able to see your credit score range.

In a Nutshell

For individuals with a 644 credit score, which falls in the category of a ‘low’ credit score, getting approvals for credit cards and loans can be difficult, especially when it involves larger debts like home loans.

While you may be able to get new credit with such a low score in a few cases (at considerably higher rates, though), it's advisable to first work on improving your credit score. For this, you can make timely payments, use credit cards wisely, limit your credit card/loan applications, and more. With patience and consistency, you will see a noticeable improvement in your score.

For any further queries on credit scores, you can get in touch with our customer support representatives via call or email.

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