How to Build Credit in Saudi Arabia Without Falling into Debt

In Saudi Arabia, having a strong credit score is more important than ever. Whether you’re planning to buy a car, rent an apartment, or secure a personal loan, your creditworthiness plays a vital role. But for many, the fear of falling into debt stops them from engaging with the credit system at all.

Fortunately, building credit doesn’t have to come at the cost of financial stability. In this blog, we’ll guide you through how to build credit in Saudi Arabia without falling into debt, offering practical tips, safe strategies, and tools that promote smart financial habits.

Understanding Credit in Saudi Arabia

In Saudi Arabia, credit scores are managed and provided by the Saudi Credit Bureau (SIMAH). Your SIMAH score ranges from 300 to 850 and is influenced by factors such as:

• Payment history
• Credit utilization
• Length of credit history
• Type of credit used
• Recent credit inquiries

A good SIMAH score can help you access better loan terms, secure rental properties, and even land certain jobs. But many residents hesitate to use credit products, worried about accumulating debt or mismanaging finances.

The good news? You can build a solid credit profile without taking on unnecessary debt — and we’re going to show you how.

1. Open a Bank Account with a Reputable Bank

Before you can build credit, you need to have a strong banking foundation. Start by opening a savings and current account with a reputable Saudi bank like Al Rajhi Bank, Riyad Bank, NCB, or SABB.

Having an active bank account with regular deposits and transactions establishes your financial presence. It may not directly affect your credit score, but it’s the first step banks look for when evaluating financial reliability.

Tip: Maintain a positive balance and avoid overdrafts. Some banks report overdraft usage to SIMAH, which can negatively affect your score.

2. Get a Secured Credit Card

A secured credit card is a great way to build credit in Saudi Arabia without risking falling into debt. Unlike a traditional credit card, a secured card requires a cash deposit as collateral. This deposit sets your credit limit, minimizing the risk for the bank and the user.

Use the card for small monthly expenses like groceries or mobile bills and pay the balance in full before the due date. This demonstrates responsible usage and positively impacts your payment history — a key component of your credit score.

Key Benefit: Since your limit is based on a deposit, you won’t accidentally overspend beyond your means.

3. Pay All Bills on Time — Every Time

One of the most influential factors in your Saudi credit score is your payment history. SIMAH tracks a wide range of bills, including:

• Credit card payments
• Personal loan EMIs
• Telecom bills (STC, Mobily, Zain)
• Utility bills (electricity and water)
• Car lease payments

Set up automatic reminders or direct debit mandates to ensure you never miss a due date. Even one missed payment can remain on your credit report for up to 5 years.

Smart Move: Use a budgeting app or your bank’s mobile app to keep track of all payment schedules.

4. Avoid Unnecessary Loans

Just because loans are accessible doesn’t mean you need to take one. Avoid personal loans or credit products unless absolutely necessary. Each time you apply for a new loan or credit card, a hard inquiry is made on your credit report, and too many inquiries can lower your score.

Instead, focus on maximizing the responsible use of existing tools, like your secured credit card or small credit lines, without seeking additional debt.

5. Keep Credit Utilization Low

Credit utilization refers to the percentage of your credit limit that you use. For example, if your credit card has a limit of SAR 5,000 and you spend SAR 1,000, your utilization is 20%.

Keeping your utilization below 30% is ideal. High utilization signals financial stress and can lower your score, even if you pay on time.

Pro Tip: If possible, pay off your credit card balance multiple times a month to keep utilization low throughout the billing cycle.

6. Use “Buy Now, Pay Later” (BNPL) Services Carefully

BNPL services like Tamara, Tabby, and Spotii are growing in popularity across the Kingdom. While these services offer flexible payment plans, misuse can hurt your financial profile.

Although not all BNPL services report to SIMAH, some have started doing so. If you miss a BNPL instalment, it could negatively impact your credit score. Use these services only if you are sure you can repay within the term.

BNPL Tip: Don’t stack multiple BNPL purchases. This can lead to fragmented debt, which becomes difficult to track and manage.

7. Monitor Your SIMAH Report Regularly

Checking your SIMAH credit report is essential to track your credit-building journey. It helps you:

• Detect errors or outdated information
• Identify fraud or unauthorized credit usage
• See where you stand and what you can improve

You can access your SIMAH credit report through their mobile app or website for a small fee. Consider checking your report at least once every 6 months.

Note: Disputing incorrect data quickly can prevent long-term score damage.

8. Use Telecom and Utility Bill Payments Strategically

In Saudi Arabia, telecom and utility companies are among the top data contributors to SIMAH. Your consistent payment of STC, Mobily, and utility bills can be reported and used as a positive credit signal.

Some residents are unaware that defaulting on a mobile bill can be just as damaging as missing a loan instalment.

Practical Tip: Even if you don’t use credit cards, these regular bills can help establish a credit history when paid consistently.

9. Don’t Cancel Your Old Credit Cards

The length of your credit history plays a role in your credit score. If you’ve had a card or credit line for years, it’s better to keep it open, even if you don’t use it often.

Cancelling old credit cards shortens your average credit age and reduces your total available credit, both of which can hurt your SIMAH score.

Strategy: Keep older cards active with small, manageable purchases every few months.

10. Consider a Small Instalment Plan (If needed)

If you need to prove your ability to handle instalment payments, consider starting with a small electronics purchase or a furniture plan. Many retailers in Saudi Arabia offer zero-interest instalment options, especially for electronics.

Choose a plan that fits your budget, and never miss a single payment. Over 6 to 12 months, this will create a healthy repayment history without exposing you to long-term debt.

Caution: Read the terms carefully to ensure there are no hidden fees.

11. Understand What Really Builds Your Score

To build credit in Saudi Arabia without falling into debt, it’s important to know what factors influence your score the most. Here’s a breakdown used by SIMAH and global credit bureaus:

By focusing on paying your bills on time and keeping your credit usage low, you’re already covering 65% of what matters most. This insight helps you prioritize your actions to strengthen your score efficiently and safely.

Final Thoughts: Build Smart, Stay Debt-Free

Building credit in Saudi Arabia doesn’t mean you need to dive headfirst into borrowing. In fact, the most effective way to build a strong credit score without debt is to use existing tools wisely, consistently, and responsibly.

To recap:

• Open a solid bank account and start your financial footprint
• Use a secured credit card for small monthly expenses
• Pay all bills (loans, telecom, utilities) on time
• Avoid unnecessary debt or loan applications
• Keep credit utilization low and monitor your SIMAH report regularly
• Understand what really drives your score and act accordingly

By following these steps, you can build credit in Saudi Arabia safely and sustainably, opening doors to better financial opportunities, without falling into the debt trap.