DBR: Top Reason Blocking you from Getting a Credit Card in Dubai

Are you not getting a personal loan or a credit card in Dubai or the UAE despite meeting all the eligibility requirements?

Then I have the answer for one of the top reasons why you are not getting a credit card or loan in Dubai.

Here is the magic word: Debt-Burden Ratio (DBR). In this blog, I share some of the Things I Learnt Today about DBR from personal experience.

What is the Debt-Burden Ratio?

I have recently applied for a personal loan in Dubai from multiple banks. When that failed I tried for getting a credit card in Dubai as well.

However, my request for the loan and credit card were rejected by the banks after the initial screening.

The DBR is the reason why I was not getting a loan in Dubai.

It is the ratio of a person’s overall monthly outgoing payments (including EMIs towards loans and credit cards) to that person’s total income.

Why is DBR important for getting loans in Dubai?

Banks or finance companies use the DBR to determine a person’s eligibility for loans or credit cards in the UAE.

The DBR reveals a person’s existing liabilities and his or her ability to repay loans and credit card payments.

How to calculate DBR for credit cards or loans in the UAE?

There is an easy formula to calculate your DBR in the UAE.

Debt-burden ratio = total debt / total income

What Is a Good Debt Ratio (and What's a Bad One)?

If you are looking for a UAE credit card or a personal loan, your DBR must be less than 50%.

If the DBR number is lower, you high chances for getting credit card approval in Dubai or a loan approval.

However, it is up to the UAE banks to decide whether or not to approve the credit card or the loan.

My AECB score is good but I am not getting a credit card…

To get a loan or credit card in the UAE, you should have an AECB score of at least 541.

Even if you have good AECB score in the UAE, your credit card application can be rejected by the banks due to bad DBR.

?Will having multiple credit cards affect my DBR?

Having multiple credit cards may adversely affect your DBR.

However, it depends on factors such as the total number of credit cards, total available credit limit from all the cards and your current salary.

I have recently spoken with an executive from Deem Finance and she told me the following thing about DBR:

“we take 5% of credit card limit and it should not exceed 50% of ur salary”

What is the impact of having bad DBR in the UAE?

Having a bad DBR in Dubai will weaken your purchasing power. Mainly you can’t do the following things:

·???????? You can’t get a credit card

·???????? You can’t get a personal loan

How to improve your DBR in Dubai?

If you are interested in improving your DBR, the following actions need to be taken:

·???????? Reduce your debts

·???????? Close some high-limit credit cards

·???????? Minimize your monthly outgoings

·???????? Increase your income/salary

Learn Personal Finance with the Best Financial Writer in Dubai, UAE

Hello.

I am Sreejith Kamalanyanan, one of the leading content writers in Dubai with more than 12 years of commendable experience.

I am one of the leading financial content writers in Dubai. I write about personal finances mostly from my personal experience and the insights I gained from working as a content writer in Dubai’s legal and financial consultancy firms. If you are interested in more financial content pieces like this follow this space.

You can contact me for content writing services by shooting a mail at [email protected]

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