# Dubai credit check



## digitalsandman (Dec 21, 2013)

Hi,

If I move to Dubai, I will be working for a very large American multinational. I imagine they would help set up housing, etc.

If not and I have to rent or if I have to get a car and would need to finance it, how would that work? Since I would not have established a credit history in Dubai, would they require my company to co-sign? Or would they base my credit based upon my credit rating in Canada? Can't find an answer online.

If anyone can provide some info on this, it would be greatly appreciated.

cheers and thanks


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## saraswat (Apr 28, 2012)

digitalsandman said:


> Hi,
> 
> If I move to Dubai, I will be working for a very large American multinational. I imagine they would help set up housing, etc.
> 
> ...


The way it works out here is that instead of the credit rating, a combination of other things work towards establishing your credit worthiness :

1. Your wage: Practically every bank will ask for a salary certificate, based on which they decide the amount of credit given.

2. Type of credit: This is pretty similar to elsewhere, in that if the credit being taken involves an underlying asset (house,car etc), then usually the amounts can be higher.

3. Your nationality: It makes a difference.

4. The last thing that matters is whether your monthly salary is being transferred to an account with the bank you are trying to get the credit product from.

Your company would not co-sign, but instead there is the practise of the bank taking a 'security' cheque (from you) in the total amount of the loan, as a fail-safe. Although the security cheque practise is slowly being deprecated and being replaced with direct debit.

Your Canadian credit rating has no relevance here.


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## Kawasutra (May 2, 2011)

digitalsandman said:


> Hi,
> 
> If I move to Dubai, I will be working for a very large American multinational. I imagine they would help set up housing, etc.
> 
> ...


Best way will be that you go to your bank (where your money is transferred to) and ask the adviser how much they will lend you and what the terms and conditions are...


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## digitalsandman (Dec 21, 2013)

saraswat said:


> The way it works out here is that instead of the credit rating, a combination of other things work towards establishing your credit worthiness :
> 
> 1. Your wage: Practically every bank will ask for a salary certificate, based on which they decide the amount of credit given.
> 
> ...


....................

Thanks very much. 

Unfortunately, my monthly salary will be sent to my bank back in Canada, in Canadian funds. That is the system at the company I would work for


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## digitalsandman (Dec 21, 2013)

Thanks very much. 

Unfortunately, my monthly salary will be sent to my bank back in Canada, in Canadian funds. That is the system at the company I would work for


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## saraswat (Apr 28, 2012)

digitalsandman said:


> Thanks very much.
> 
> Unfortunately, my monthly salary will be sent to my bank back in Canada, in Canadian funds. That is the system at the company I would work for


You can still get financing, albeit at a higher interest/profit rate or a smaller loan amount.

It depends on the banks policies really. Also ask your employer if they are registered at any of the banks here, and if so, talk to that/those particular banks. It really helps and is usually another requirement to get a loan that doesn't involve an underlying asset


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## digitalsandman (Dec 21, 2013)

good to hear

thanks a bunch


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## Jager (May 26, 2012)

For a car loan, some of the dealers will arrange finance, though I don't know if that competitive with bank rates or if its still an option if you're not being paid in Dubai. Other may know.

Note also that if your salary isn't being paid into a bank here and you want a credit card, the bank will typically want you to give them a sizable deposit as well (ie Emirates NDB want a Dhs 6k deposit for a Dhs 5k credit card).


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## digitalsandman (Dec 21, 2013)

thanks for the info; I'll email a couple banks to see what their policy is.

Any banks you would recommend?

cheers


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## Jager (May 26, 2012)

digitalsandman said:


> thanks for the info; I'll email a couple banks to see what their policy is.
> 
> Any banks you would recommend?
> 
> cheers


You'll discover once you get here that no one has anything positive to say about the banks. There are various threads on the forum about banks which you can find with the search function. 

Surprisingly some of the 'international' banks seem to rate the worst and I think as a general concensus from what I've read on the forum HSBC and Citibank are best avoided and you'll actually have a better experience with one of the local banks. Your company will presumably have a relationship with one of them and having a good PRO who can make the necessary introductions is probably invaluable.


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## digitalsandman (Dec 21, 2013)

thanks, that's very helpful.

Strange that the international banks have that reputation. Maybe they're just after the big money.

cheers


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## saraswat (Apr 28, 2012)

One of the reasons for the large international banks having said reputation here, is the fact that they are not allowed to open more than 7 branches (not ATM's, full blown branches) in the country.

Add in the fact that a majority of expats/foreign businesses look to bank with the international banks for various reasons, it does make things hard on both them and clientele.


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## ushmij (Oct 20, 2013)

Hi If your company won't offer housing in Dubai, I think you could buy a car first and choose a cheaper apartment and the rent you save will be sufficient for a second hand car.
If you need financing for a new car, as someone said, the dealer will help you and you can also apply to more than one bank here. Since no credit record share system exits in UAE, you can borrow from many banks. The loan decision made by banks usually relies on your payroll.


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## digitalsandman (Dec 21, 2013)

good ideas,

thanks very much


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