{"id":591,"date":"2020-10-19T08:00:28","date_gmt":"2020-10-19T04:00:28","guid":{"rendered":"https:\/\/moneymall.ae\/credit-blog\/?p=591"},"modified":"2020-10-19T08:48:06","modified_gmt":"2020-10-19T04:48:06","slug":"improve-your-uae-credit-score","status":"publish","type":"post","link":"https:\/\/moneymall.ae\/credit-blog\/improve-your-uae-credit-score\/","title":{"rendered":"3 Brilliant Methods To Improve Your UAE Credit Score With Loans"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">Most of the banks in UAE, as of this day, base their interest rates on the borrower\u2019s <a href=\"https:\/\/moneymall.ae\/credit-blog\/a-good-credit-score-is-good-financial-health-true-or-false\/\"><strong>credit score<\/strong><\/a> but there is a handful of brilliant go-to methods that can help you improve your credit score with loans. How? Well,\u00a0 the credit history that you maintain eventually determines your credit score and a high credit score would mean a lower interest rate. It represents your credit-worthiness that reflects how much risk lenders perceive when giving you the money. <\/span><\/p>\n<h1><span class=\"ez-toc-section\" id=\"So_ensure_that_you_improve_your_UAE_credit_score_while_taking_out_your_loans_We_recommend_you_3_ways_to_do_so_Read_on%E2%80%A6\"><\/span><span style=\"font-weight: 400;\">So, ensure that you improve your UAE credit score while taking out your loans. We recommend you 3 ways to do so. Read on&#8230;<\/span><span class=\"ez-toc-section-end\"><\/span><\/h1>\n<figure id=\"attachment_1456\" aria-describedby=\"caption-attachment-1456\" style=\"width: 900px\" class=\"wp-caption aligncenter\"><a href=\"https:\/\/moneymall.ae\/credit-blog\/good-credit-score-in-uae\/credit-score-in-uae\/\" rel=\"attachment wp-att-1456\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-1456\" src=\"https:\/\/moneymall.ae\/credit-blog\/wp-content\/uploads\/2020\/09\/Credit-Score-in-uae.png\" alt=\"UAE Credit Score\" width=\"900\" height=\"559\" \/><\/a><figcaption id=\"caption-attachment-1456\" class=\"wp-caption-text\">UAE Credit Score<\/figcaption><\/figure>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_79 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a233718bcf82\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a233718bcf82\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/moneymall.ae\/credit-blog\/improve-your-uae-credit-score\/#So_ensure_that_you_improve_your_UAE_credit_score_while_taking_out_your_loans_We_recommend_you_3_ways_to_do_so_Read_on%E2%80%A6\" >So, ensure that you improve your UAE credit score while taking out your loans. We recommend you 3 ways to do so. Read on&#8230;<\/a><ul class='ez-toc-list-level-2' ><li class='ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/moneymall.ae\/credit-blog\/improve-your-uae-credit-score\/#Tips_to_build_your_UAE_credit_score_while_taking_out_a_loan\" >Tips to build your UAE credit score while taking out a loan<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/moneymall.ae\/credit-blog\/improve-your-uae-credit-score\/#Methods_to_improve_your_credit_score_with_loans\" >Methods to improve your credit score with loans<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/moneymall.ae\/credit-blog\/improve-your-uae-credit-score\/#Debt_consolidation\" >Debt consolidation<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/moneymall.ae\/credit-blog\/improve-your-uae-credit-score\/#Credit_builder_loan\" >Credit builder loan<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/moneymall.ae\/credit-blog\/improve-your-uae-credit-score\/#Smaller_loan\" >Smaller loan<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n\n<p style=\"text-align: center;\"><em><strong>Read More:-\u00a0<a href=\"https:\/\/moneymall.ae\/credit-blog\/lost-your-credit-card-in-uae\/\">What to Do If You Lost Your Credit Card in UAE ?<\/a><\/strong><\/em><\/p>\n<h2><\/h2>\n<h2><span class=\"ez-toc-section\" id=\"Tips_to_build_your_UAE_credit_score_while_taking_out_a_loan\"><\/span><b>Tips to build your UAE credit score while taking out a loan<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Before we discuss the methods to have a better credit score with loans, here are a few points that you should keep in mind to maintain and improve your credit score every time you avail a loan:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><b>Decide the loan amount carefully &#8211; <\/b><span style=\"font-weight: 400;\">Always make sure that you only borrow the amount that you need and not more. Do not borrow extra money to save the rest for other purposes or for future use.<\/span><\/li>\n<li style=\"font-weight: 400;\"><b>Make regular loan payments &#8211; <\/b><span style=\"font-weight: 400;\">To avoid missing your due date, set a reminder on your phone a few days beforehand or mark the date on your calendar. You can also adjust your online account settings so your bill is paid automatically on a certain day of the month through a direct bank draft.<\/span><\/li>\n<li style=\"font-weight: 400;\"><b>Do not close loans prematurely &#8211; <\/b><span style=\"font-weight: 400;\">Do not close the <a href=\"https:\/\/moneymall.ae\/credit-blog\/personal-loan-vs-business-loan-in-uae\/\"><strong>loan<\/strong><\/a> before the loan matures. A longer period of credit history is always considered better. If you keep making regular payments for a long time period, your credit score will grow better.<\/span><\/li>\n<li style=\"font-weight: 400;\"><b>Do not apply for multiple loans &#8211; <\/b><span style=\"font-weight: 400;\">Make it a point to only borrow what you can afford to pay back. It is always advisable to pay your old debts off before being subject to new ones.<\/span><\/li>\n<\/ul>\n<p style=\"text-align: center;\"><em><strong>Read More:-\u00a0<a href=\"https:\/\/moneymall.ae\/credit-blog\/a-good-credit-score-is-good-financial-health-true-or-false\/\">A Good Credit Score Is Good Financial Health. True or False?<\/a><\/strong><\/em><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Methods_to_improve_your_credit_score_with_loans\"><\/span><b>Methods to improve your credit score with loans<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Given below are the three most popular and least risky methods to take out a loan and build your credit score.<\/span><\/p>\n<ul>\n<li><b>Debt Consolidation<\/b><\/li>\n<li><strong>Credit Builder Loan<\/strong><\/li>\n<li><strong>Smaller Loan<\/strong><\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Debt_consolidation\"><\/span><b>Debt consolidation<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Debt consolidation is not only the most popular method to overcome debt but also helps in building your <a href=\"https:\/\/moneymall.ae\/credit-blog\/how-many-credit-cards-can-a-person-hold-in-uae\/\"><strong>credit score<\/strong><\/a>. For example, if you have three <a href=\"https:\/\/moneymall.ae\/credit-blog\/balance-transfer-credit-cards-effects-credit-score\/\"><strong>credit cards<\/strong><\/a> of different interest rates with an outstanding balance on each of those cards, you can pay the outstanding balance off by availing a personal loan and then, make payment for the personal loan with one payment per month. Since you paid off your credit card dues as well as your personal loan, your credit score is bound to increase. This method also helps customers in saving money since <a href=\"https:\/\/moneymall.ae\/credit-blog\/a-beginners-guide-to-personal-loans-in-uae\/\"><strong>personal loans<\/strong><\/a> offer lower interest rates than credit cards.<\/span><\/p>\n<p style=\"text-align: center;\"><em><strong>Read More:-\u00a0<a href=\"https:\/\/moneymall.ae\/credit-blog\/balance-transfer-credit-cards-effects-credit-score\/\">5 things you didn\u2019t know about balance transfer Credit Cards and its effect on credit scores<\/a><\/strong><\/em><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Credit_builder_loan\"><\/span><b>Credit builder loan<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">A credit builder loan is a loan where the borrower does not get access to the money until it is fully paid. Fixed payments are to be made each month towards the total amount of the loan. You will finally receive the fund amount through access to a savings account with the loan amount in it once the total amount, along with interest, is paid off. By this time, <\/span><span style=\"font-weight: 400;\">you will have a good <a href=\"https:\/\/moneymall.ae\/credit-blog\/20-myths-about-credit-scores-in-uae\/\"><strong>credit score<\/strong><\/a> built through regular monthly payments<\/span><span style=\"font-weight: 400;\">.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Smaller_loan\"><\/span><b>Smaller loan<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Applying for a smaller loan is one of the easiest ways of improving your credit score and having a better credit history. The best way to go about it is to apply for a small cash loan of up to <strong>AED 5,000<\/strong> and repay the loan amount in 6 months or a higher time period. If you have enough money to close your small loan, you can pay the loan amount in bulk but remember to not close the loan before the loan matures. This will quickly improve your credit score.<\/span><\/p>\n<p style=\"text-align: center;\"><em><strong>Read More:-\u00a0<a href=\"https:\/\/moneymall.ae\/credit-blog\/11-best-metal-credit-cards-in-uae\/\">5 Best Metal Credit Cards in UAE<\/a><\/strong><\/em><\/p>\n<p><span style=\"font-weight: 400;\">Loans are not simply meant for financial emergencies. If used effectively, they can act as a valuable tool for <a href=\"https:\/\/moneymall.ae\/credit-blog\/20-myths-about-credit-scores-in-uae\/\"><strong>building credit scores<\/strong><\/a>. That being said, you have to understand your financial position before you apply for a loan and be very cautious regarding the payment of loan amounts. If you are not in a position to repay a loan, avoid falling into a debt trap as it will only cause damage to your credit score instead of improving it. Always remember that a higher credit score brings with itself better financial options.<\/span><\/p>\n<div class=\"text\">\n<div id=\"mntl-sc-block_1-0-54\" class=\"comp mntl-sc-block mntl-sc-block-html\">\n<div class=\"text\">\n<pre>Original Post Date : Jun 22, 2020 , Updated on : Oct 19, 2020<\/pre>\n<\/div>\n<div class=\"clear\"><\/div>\n<\/div>\n<\/div>\n<div class=\"clear\"><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Most of the banks in UAE, as of this day, base their interest rates on the borrower\u2019s credit score but 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