Having a bad credit rating can work against you in several different ways. The minimum credit score for a credit card in UAE is at least 400. Along with not getting a credit card, you’re going to face many difficulties getting approval for loans. If the credit rating isn’t up to the mark, you might also have to pay a higher interest rate to borrow.
One of the most popular myths about credit scores is that you can’t do anything about your bad credit history. A credit score in the UAE is just as crucial as everywhere else. Here’s all you need to know about your credit score in UAE and how you can erase bad credit history.
Removing bad history
It’s possible to improve credit scores in the UAE by removing the adverse credit history. Although, you’re going to have to pay a charge to get rid of the bad credit. This method is known as the pay for delete. It occurs when an applicant agrees to pay either a portion or the entirety of the outstanding debt. The payment is made under the pretense that the creditor will arrange with credit bureaus and get rid of bad history. They’ll also remove any negative comments and all indications of late payment on the account.
How to apply for pay for delete
Clients who want to apply for pay for delete will have to send a letter to their respective creditor or debt collection agency. The letter should contain:
- Your full name and address
- The creditor or agency’s detail
- Name and account number
- A written statement
This written statement will contain how much you’re willing to pay and what you’re expecting in return. The purpose of pay for delete is to ask the creditor to take back any negative comments related to late payments. It’s not a guaranteed method and is almost always seen as a last resort situation.
Aside from applying for the pay for delete scheme, there’s another option available to you as well. Unlike compensation for delete, this isn’t a stop-gap and doesn’t work according to the creditor’s goodwill.
Clients looking to erase bad credit history can give themselves a leg up by hiring a credit repair agency. These firms don’t have a magic wand that they wave, and suddenly all your bad credit history is gone; they do your work for you.
The agency will call the creditors and credit bureaus to report any inaccuracies and objections. By reporting inaccuracies and objections, credit bureaus will have to review the credit rating and remove inaccuracies. Removal of these inaccuracies and can help significantly improve the credit score and erase any inaccurate credit history.
Maintaining a good credit rating is incredibly important in this modern world. Getting a line of credits, loans, and better terms all depends on the credit score. If your credit score isn’t up to the mark, it’s possible to get some bad credit history removed from your report. Clients have the option to either opt for pay for delete or hiring a credit repair agency. Both methods can help erase bad credit history from your report.