Consumers welcome UAE credit bureau plans

Dubai: Readers were optimistic about the launch of the Al Etihad Credit Bureau in the UAE, as it meant better service and a way to end falling into debt.

Karen Beggs, Gulf News reader and CEO of The Coffee Pod, an upcoming cafe in Dubai, said: “I think this is a great initiative. Sometimes, when people find themselves in great financial difficulty, they tend to look to banks for credit. A credit card to pay off debts on another credit card is not a solution. A bureau will help keep in check this habit of people applying for multiple credit cards and maintain a clean record as far as their credit history is concerned.”

Another reader, Vidya R., a Dubai-based homemaker, felt that for some, this move may have a negative impact.

She said: “I am sure this is good for banks, but as a consumer, it might be difficult at times. When we live in the UAE with family, our salary may not suffice in helping us repay debts on our existing credit card, and we may need a loan. It will however, ensure that people make sure they have a good credit history.”

Banker Sujith C. talked about the flip side of the situation.

He said: “This is definitely a good move. It will help in eliminating fraud applications and help banks serve credit card applicants better, depending on their credit history. Many people in the UAE get caught in credit card debts and have to face the law; an initiative like this will help reduce such cases.”

Nikhil Prakash, a safety and security officer in a Dubai-based company, said: “I think this will help credit limits to be controlled properly. I feel that currently many banks are not filtering these limits and offering some people more than what they should be allowed. In such cases the credit limits gets misused. Higher credit limits should only be offered to people who have good credit history.”