In the Kingdom of Saudi Arabia, if you have a credit card in your name, then your information (how often you make payments on time or late, personal details, purchase history) all get reported to the credit bureau. The credit bureau in the Kingdom is called SIMAH.
A credit score shows your current and past credit performance. Your credit report is one of the most important documents about your financial life. Banks and lenders view the report in order to decide to conduct business with you. Your credit report impacts your ability to get credit for things. Say, you are interested in buying a home, taking a mortgage, buying a car or even getting the job that you want.
This is some of the information they collect:
- Personal information
- Purchase history
- Account details
- Employment history
What does the credit score mean?
A credit score is a three-digit number that represents your creditworthiness, based on your credit history.
Credit scores typically range from 300 (which is considered a poor score) to 850 (an excellent score).
Why is it important?
The credit bureau collects & displays credit information as provided by your creditors who you do business with. Information from banks, credit card issuers, mortgage lenders, collection agencies, and public court records are some of the sources of this information.
Based on your previous and current credit history, all the information about you is compiled into a file called the credit report. Lenders look at this credit report to see if you’re a financially risky or healthy individual.
How do I keep my score high (in the 700-800 range)?
Basically, pay your bills on time, every time. Making timely payments is an important factor in maintaining good credit.
Keep the balances on your credit cards (and other types of revolving credit) at reasonable and manageable levels. Avoid going over your credit limit.
Do not close old credit cards (particularly the ones you have had the longest). Doing so will reduce your credit limits which could adversely impact your credit score.
Try to establish a mix of credit – not just credit cards, but utilities, car loans, and mortgages provided that you can afford them.
Do not apply for credit you will not need.
Some more tips
Remember…make sure you make credit card and bill payments on time! Late payments reflect poorly and impact your credit score. They can result in declined services at the point of sale, late fees, commissions on outstanding balances, or a credit limit reduction.
Review your credit report regularly, within the Kingdom citizens and residents can check their report on Molim.
Psst.. if you are a first-time user of MOLIM or SIMAH then you can get your 1st credit report for free.