4 Institutions That Have Access To Your Credit Rating in Kenya
In Kenya, most, if not all credit providers such as banks, microfinance institutions, Sacco’s, etc. share information of borrower's outstanding loans and credit advances.
Credit referencing hit Kenya just the other day, it seems, and in a big way too. Mention CRB (Credit Referencing Bureau) anywhere and notice all ears perk up. It affects everyone who needs to access loans or lines of credit.
In Kenya, most, if not all credit providers such as banks, microfinance institutions, Sacco’s, etc. share information of borrower's outstanding loans and credit advances. This is done through licensed Credit Reference Bureaus (CRB) licensed by the Central Bank of Kenya.
Before you can access any loan facility, your credit reference information must be accessed and analyzed. Lenders will take other factors, plus your credit history into account when determining your suitability for a loan or credit line.
Other terms you’ll hear along the financial corridors, that refer to credit information sharing include credit referencing or Credit reporting. The report is submitted on a monthly basis, and it contains your entire loan book, date, and repayment information.
Credit rating is not a concern if you are paying your loan on time.
Here are some benefits for paying your loan on schedule.
It distinguishes you from persistent defaulters and keeps your reputation intact.
Makes it easy for you to negotiate loan terms following your credit score evidenced in the CRB report.
You can take advantage of the lenders competition to secure better terms since you can quickly change your credit provider.
To the lender, this information strengthens the risk management processes and makes loan application for their clients faster and hassle free.
There are four major credit reporting agencies in Kenya and they are:
1. TransUnion
This global reference provider was recently launched in Kenya as a mobile based credit reference service, to enable customers to access their credit rating. The TransUnion Nipashe SMS short codes ‘21272’ or ‘21CRB’ allow subscribers to access their up-to-date and accurate credit score information via SMS at a registration charge of Ksh 50 per SMS and Ksh 19 per SMS for every inquiry.
The service comes amid a rampant growth of mobile micro lenders like the M-shwari, Saida, and Tala.
2. Metropol Credit Reference Bureau Ltd
Started in 1996 as a business information and credit management company, it collaborated with GCR (Global Credit Rating) and began to provide credit rating services. With this company, credit providers can now effectively manage credit risks, improve efficiency, while maximizing profits.
3. Credit info Credit Reference Bureau Limited
The company allows its clients to apply for the Consumer Credit info Monitoring. Subscribed clients also get email updates whenever changes in their profile take place. Through its robust database of information, businesses can make right decisions.
4. Jubilant Kenya
Jubilant Kenya believes that any business is there to serve all the needs of her customers. The company prides itself as the leading retail community microfinance for credit and investments.