850 Credit Score – Is It Good or Bad?
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Credit scores are one of the most important parts of the financial and banking world. Your AECB Credit Score helps lenders decide whether you can be trusted with the borrowed money. This means that having a good credit score is essential for getting proper credit services in not only the UAE but all around the world.
This piece will uncover whether an 850 credit score is good or bad, how to get an 850 credit score, and what you can get in terms of credit tools with it.
What Does an 850 Credit Score Mean?
AECB divides credit scores, spanning the range of 300 to 900, into 5 five categories in the UAE – very low, low, medium, high, and very high.
| Credit Score (Range) | Category | Star Equivalent |
|---|---|---|
| 746-900 | Very High | 5 |
| 711-745 | High | 4 |
| 651-710 | Medium | 3 |
| 541-650 | Low | 2 |
| 300-540 | Very low | 1 |
As evident from the table, all credit scores higher than 746 are considered very high credit scores. Having an 850 credit score means that you have a very high credit score, which denotes excellent credit management. A very high credit score can represent you as a highly responsible borrower who has rarely missed a bill payment due date so far, credit or otherwise.
How to Get an 850 Credit Score in UAE?
As credit scores are dynamic and keep changing as per your actions related to credit and finance management, you can aim for and achieve a credit score of 850 easily.
For this goal, you can keep the following aspects in mind:
Maintain Healthy Credit Utilisation Rate:
A credit utilisation rate of 30% or lower is recommended when you use your credit cards, with a healthy credit utilisation ratio contributing to increasing your credit score.
A key point to remember here is not using your credit card will not increase your credit score – responsible usage will. You can aim to use 10% to 30% of your credit limit each month to get an 850 credit score.
Pay All Bills on Time:
Each payment due in your name is tracked in the UAE and considered when your credit score is calculated. Thus, missing even a single bill payment can impact your credit score. To get an 850 credit score, pay all your bills on or before time. This includes both your credit account payments and generic monthly bills like utility bills.
Choose Credit Accounts Smartly:
You should take your time and select your credit tools smartly. Once you have chosen the type of credit account you want to open, stick with it for as long as possible. Moreover, if possible, you should also aim to diversify your credit portfolio and add both revolving credit and instalment credit products to it.
Be Patient & Consistent:
Getting a high credit score, while being fairly straightforward, is not a matter of a few days. While the steps for the same may be easy to follow, it takes a considerable amount of time to build up your score and take it to the very high category. Thus, you should consistently make timely payments, utilise your credit limit wisely, diversify your credit portfolio, choose credit accounts wisely, and perform all these actions consistently to have a tangible increase in your credit score.
What Can an 850 Credit Score Get You?
Discussed below are the products that can be easily availed with an 850 credit score in the UAE as well as some other aspects regarding the same:
Credit Card with 850 Credit Score:
As long as you clear the basic eligibility criteria, your 850 credit score will allow you to get practically any credit card you desire. Remember that most credit cards come with unique minimum salary requirements and other individual eligibility criteria. Once you clear them, you can easily get the card you want.
Personal Loans for 850 Credit Score:
Personal loans are the most flexible loans available out there. They are also the only kind of loans where you can negotiate interest rates as per your customer and risk profile. Since an 850 credit score showcases exemplary financial management skills, you can easily negotiate and bring down your personal loan interest rates.
Auto Loans for 850 Credit Score:
Credit scores play an important role when it comes to deciding the interest rates for auto loan applications, with your credibility determined by your credit score in the UAE. With an 850 credit score, you can expect some of the lowest possible interest rates for your car loan.
A key thing to remember here is that other factors may still influence the final rate of interest you get. Other than that, it may be possible for you to get a higher loan amount without significantly increasing your interest rate if your credit score falls under the very high category.
850 Credit Score Home Loans:
Mortgage loans are the longest available loans out there. Since the tenure can spread over 25 years in most cases, credibility is given higher importance while approving applications. Having an 850 credit score can put you at the top of the approved pool of home loan candidates. Additionally, you can also get exceptionally low interest rates for your loan.
Insurance Plans & 850 Credit Score:
Credit scores are not among the primary influential factors for insurance premiums in the UAE. However, a noticeable difference can be observed if the score lies on either of the two extreme sides – very low and very high. Given the fact that an 850 credit score lies in the very high category, you will be able to score significantly lower premium rates for any kind of insurance plan you purchase in the emirates.
Check Your AECB Credit Score for Free
A small fee is required to check your credit score using online portals provided by the AECB. You can either use these portals to get your AECB credit score or check your credit score for free from the Policybazaar UAE website. A free credit score check is available when you start your personal loan or credit card disbursal journey with us.
Key Takeaways
Having an 850 credit score bodes well for you as a borrower. You can get most credit tools and products that you desire and at favourable interest rates too. Nevertheless, even if you already have an 850 credit score, maintaining it is necessary by making payments on time and using your credit tools smartly. If you are striving to increase your score, make payments on time, use only up to 30% of your credit limit, and be consistent with timely repayments.
| 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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