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How to Assess Cheque Bounce Risk with Cheque Score from Al Etihad Credit Bureau

Cheque Score service offers peace of mind and financial security for individuals and businesses

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Pavitra Shetty

Published on May 30, 2024, 13:01:13


cheque bounce in uae, cheque score, al ethihad credit bureau

In the digital age, financial transactions often rely on cheques, but the uncertainty of whether a cheque will bounce can be a concern. Al Etihad Credit Bureau (AECB) offers an online service to help cheque receivers assess this risk through the Cheque Score system.

Understanding Cheque Score

The Cheque Score service allows individuals and businesses to evaluate the likelihood of a cheque bouncing. This tool is particularly useful for small and medium-sized enterprises that cannot afford the repercussions of delayed or missed payments.

How to Obtain a Cheque Score?

To use the Cheque Score service, follow these steps:

  • Download the App: Get the Al Etihad Credit Bureau Cheque Score app from your preferred app store.
  • Submit Cheque Details: Scan the cheque, upload an image, or manually enter the cheque data.
  • Complete Payment: Finalise the process by making the necessary payment.
  •  View & Share Score: The Cheque Score will be displayed, and you can share it as needed.

How does the Cheque Score Work?

A Cheque Score is calculated using a sophisticated algorithm based on predictive analytics and extensive data from AECB’s database. The score, ranging from 1 to 99 per cent, indicates the probability of the cheque bouncing within the next nine months. The score is colour-coded for easy interpretation:

  • Green: Low Risk
  •  Amber: Medium Risk
  •  Red: High Risk

Improving Your Cheque Score

Maintaining a good Cheque Score is essential for financial stability. Here are steps to improve your score:

  •  Pay your bills on or before the due date.
  •  Avoid bouncing cheques.
  •  Reduce outstanding balances and manage credit utilisation.
  •  Avoid applying for multiple credit cards or loans simultaneously.

Why Knowing Your Credit Score Matters?

A credit score is a three-digit number reflecting your creditworthiness and impacts your ability to obtain loans or credit cards. Higher scores facilitate easier access to credit, lower interest rates and more favourable loan terms.

In the UAE, AECB generates credit reports that include your credit score. These reports are compiled using data from various financial institutions, telecom operators and service providers, covering aspects such as loans, credit card usage, payment history and bounced cheques.

What Constitutes a Good Credit Score?

Credit scores range from 300 to 900, with scores above 700 considered good. A score below 400 is typically unfavourable and may result in loan or credit card rejections. To apply for your credit score, visit the AECB website or use the AECB app. You can opt for either a comprehensive credit report or just your credit score.

Benefits of the Cheque Score System

The Cheque Score system provides vital insights, helping you decide whether to accept a cheque as a payment method. By receiving notifications about upcoming payments and potential risks, you can make more informed financial decisions.

Using Cheque Score ensures you are better prepared to handle cheques, minimising the risk of bounced payments and improving your overall financial management.

In conclusion, the Cheque Score service by Al Etihad Credit Bureau is a valuable tool for managing cheque-based transactions, offering peace of mind and financial security for individuals and businesses alike.

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