Steps to Fix a Low Credit Score in Saudi Arabia
A low credit score in Saudi Arabia, as reported by the Saudi Credit Bureau (SIMAH), can limit your access to loans, increase borrowing costs, or hinder major life goals like buying a home.
Steps to Fix a Low Credit Score in Saudi Arabia
A low credit score in Saudi Arabia, as reported by the Saudi Credit Bureau (SIMAH), can limit your access to loans, increase borrowing costs, or hinder major life goals like buying a home. Whether it’s due to missed payments, high debt, or errors, you can take concrete steps to rebuild your score. Here’s a practical guide to fixing a low credit score in Saudi Arabia, tailored to its unique financial system.
Why a Low Credit Score Hurts
The Impact: A poor SIMAH score signals risk to lenders, affecting your ability to secure Shariah-compliant financing, credit cards, or even rentals. In Saudi Arabia, where Vision 2030 is expanding credit access, a low score can hold you back from economic opportunities.
The Goal: Raising your score shows financial responsibility, unlocking better terms and trust from banks.
Step 1: Review Your SIMAH Credit Report
Why It Matters: You need to know what’s dragging your score down—errors or real issues.
How to Do It:
Request your free annual SIMAH report using your Absher account.
Check payment history, credit balances, and inquiries for inaccuracies (e.g., a late payment you paid on time).
Dispute errors with SIMAH by submitting proof like bank statements. Saudi Context: SIMAH tracks utilities and telecom too—verify these entries carefully.
Step 2: Pay Off Overdue Debts
Why It Matters: Late payments are a top reason for low scores, and clearing them stops further damage.
How to Do It:
List all overdue accounts (e.g., credit cards, loans, utility bills).
Contact creditors to negotiate payment plans or settlements—many Saudi banks are flexible if you show intent.
Pay off small debts first for quick wins, then tackle larger ones. Saudi Context: Even Shariah-compliant loans (e.g., Murabaha) report defaults, so prioritize these too.
Step 3: Reduce Your Credit Utilization
Why It Matters: High usage (above 30% of your credit limit) hurts your score—lowering it shows control.
How to Do It:
Pay down balances on credit cards or financing agreements early in the billing cycle.
Avoid maxing out any account—spread spending if you have multiple cards.
Ask your bank for a higher limit (e.g., from SR 5,000 to SR 8,000) without using the extra credit. Saudi Context: SIMAH updates fast—early payments can reflect within a month.
Step 4: Build Positive Credit History
Why It Matters: Consistent, on-time payments overwrite past mistakes, gradually lifting your score.
How to Do It:
Use a secured credit card or small Shariah-compliant loan (e.g., Ijara for equipment) if you lack active credit.
Set up automatic payments for bills—utilities, telecom, and credit—to avoid misses.
Keep old accounts open to lengthen your credit history. Saudi Context: SIMAH rewards steady behavior, even from non-traditional sources like phone bills.
Step 5: Avoid New Credit Risks
Why It Matters: New applications or defaults can worsen a fragile score—focus on recovery first.
How to Do It:
Skip unnecessary credit inquiries for 6-12 months.
Don’t close unused accounts—doing so shrinks your available credit, raising your utilization ratio.
Stick to a budget to prevent new debt. Saudi Context: With credit offers rising under Vision 2030, restraint is key during rebuilding.
Tips for Success in Saudi Arabia
Be Patient: Score improvements take 6-12 months, but small gains (e.g., clearing a default) show sooner.
Leverage Local Systems: Use Absher and bank apps to monitor progress and stay on track.
Seek Help if Needed: Some Saudi banks offer debt counseling—ask about restructuring options. Saudi Context: Shariah-compliant financing gives expats and locals alike halal ways to rebuild.
Why Fixing Your Score Matters
A higher SIMAH credit score in Saudi Arabia means better access to financing, lower profit rates on Islamic loans, and financial freedom. It’s not just about recovery—it’s about thriving in a Kingdom where credit is increasingly vital. Start by reviewing your report, paying off debts, and building positive habits. With time and discipline, your low score can become a strength.