Dubai: If you have recently relocated to the UAE, applying for a car loan or credit card will be much easier if you have a Foreign Credit Report.
The Foreign Credit Report service was officially launched on March 7 by the Al Etihad Credit Bureau (AECB), in partnership with US-based company Nova Credit. Nova Credit is a company that helps expatriates apply for financial services in their new country of residence by aggregating global credit bureau and bank transaction data.
The new service launched by AECB will provide UAE banks access to past credit history of expatriates from over 20 countries, including the United Kingdom, India and the Philippines.
What is the Foreign Credit Report?
According to Marwan Ahmad Lutfi, Chief Executive Officer of AECB, the service will allow banks to generate credit reports that are standardised as per local requirements.
“Through its collaboration with Nova Credit, AECB can instantly retrieve, translate, and standardise all underlying credit file data, resulting in a UAE-standardised consumer report that is provided to both the lender and consumer. AECB’s Foreign Credit Report service is currently only available to UAE lenders [banks or financial institutions] who have subscribed to this product,” Lutfi told Gulf News.
Through its collaboration with Nova Credit, AECB can instantly retrieve, translate, and standardise all underlying credit file data, resulting in a UAE-standardised consumer report that is provided to both the lender and consumer.
Will the service make it easier for new UAE expats to get a loan?
If you are a new resident who had a good credit history in your home country, earlier you would have to start from scratch to rebuild your credit score in the UAE. This usually prolongs the process of getting a loan or credit card with UAE banks.
“This [Foreign Credit Report] eliminates the time-consuming process of establishing a new credit history and helps consumers promptly gain access to credit,” said Lufti.
“Also, the Foreign Credit Report allows UAE lenders to efficiently assess the creditworthiness of new customers by utilising their credit data from their home country,” he explained.
This [Foreign Credit Report] eliminates the time-consuming process of establishing a new credit history and helps consumers promptly gain access to credit
How can I access this service?
When you apply for a loan or a credit card in the UAE, all you need to do is to give permission to the bank or financial institution to access your foreign credit report, according to AECB. When you do so, you will receive an email from the UAE-based lender, requesting your consent to access your foreign credit report.
“For new expats in the country, it is typically required to provide basic personal information and consent to ensure authentication, as well as the details of the country where they have a credit card or loan,” he added.
When providing the details of your credit history, you need to ensure that you provide the details as required by your home country's credit bureau. This means providing your full legal name and a common country identification number, according to Lutfi.
Once you have given your permission, Nova Credit, which has partnered with AECB and credit bureaus around the world, will convert your home country’s credit data into a Foreign Credit Report. This report will then be sent to you via email and shared with your bank as well.
Once you receive the email from Nova Credit, you have 72 hours to download the Foreign Credit Report, according to AECB.
For new expats in the country, it is typically required to provide basic personal information and consent to ensure authentication
How much does the Foreign Credit Report cost?
The service is free of charge for applicants, according to Lutfi.
“This service is paid for by lenders, and is provided free of charge to consumers. Initially, the service started with local banks, but we anticipate more service providers will take advantage of the sophisticated infrastructure to enhance the customer experience for anyone relocating to the UAE,” he said.
This service is paid for by lenders, and is provided free of charge to consumers.
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