Credit History
Synonyms: Credit Record، Credit Report، Credit File، Repayment History
Last updated: 2026-09-25
Short Definition
A credit history is a documented record held by a licensed credit bureau containing a person's current and past credit dealings, such as finance, cards, installments and guarantees, and how regularly he has repaid, which lenders review with his consent before granting finance.
Overview
Legal Basis
The Credit Information Law issued by Royal Decree No. M/37 dated 5/7/1429H and its Implementing Regulations: Article 16 (record contents), Article 17 (negative information kept for at most five years after settlement, ten years for bankruptcy, insolvency and delayed Zakat or tax), Article 40 (members must obtain written consent and update data at least weekly), Articles 43 and 44 (right to obtain the record and know who inquired) and Article 46 (objections investigated within 30 business days). Article 7 of the Real Estate Finance Law (M/50 dated 13/8/1433H) requires the borrower to have a credit record throughout the finance period.
Practical Example
Salem defaulted on a personal loan in 2021 and settled it in full in March 2023. In 2026 he applies for home finance, and the bank sees the past default marked as settled, since this negative information may be kept until March 2028 at most. Salem also finds an overdue telecom bill he had already paid, so he files an objection with the payment receipt; the bureau notifies the reporting member within five business days, a failure to respond within ten business days counts in favour of the objection, and the outcome is issued within the 30-business-day limit, correcting the record. The bank approves the finance after confirming three years of regular payments, applying the usual deduction limits.
Common Mistakes
- ✗Thinking paying off a defaulted debt erases it immediately, when negative information can remain for up to five years after settlement.
- ✗Not reviewing the record periodically, although errors happen and can be corrected through a free objection.
- ✗Guaranteeing others or co-borrowing on their finance without realising that guarantees and joint finance appear in the record.
- ✗Believing having no credit dealings at all is an advantage, when a thin history can make creditworthiness harder to assess.
- ✗Ignoring bounced cheques and unpaid official claims, which are part of the record.
International Differences
Retention periods for negative information vary: in the US most negative items stay about seven years and some bankruptcies longer, and in the UK usually six years. In the UAE, Turkey and Egypt, credit information laws set retention periods and objection rights under country-specific rules. Saudi Arabia stands out for a clear rule (five years from settlement, ten for bankruptcy, insolvency, Zakat and tax) and a fixed deadline for investigating objections.
