Ever since financial institutions like banks, SACCOs, HELB and MPESA started listing defaulters on credit reference bureau CRB, the need to clear your name and improve your chances of getting a second loan have been on the rise. Clearing your debt is no longer enough. You have to get that bureau CRB clearance to regain your borrowing power (credit score).
Why Should You Care?
A CRB report lets you know if you are listed as a loan defaulter or not. If CRB Kenya has your name on its list of defaulters, you: Have lower chances of being employed if your potential employer uses reference bureau CRB records as hiring criteria. Most companies and institutions nowadays avoid hiring loan defaulters. Any insurance company, be it car insurance or a personal health cover provider will charge you hire premiums compared to someone with a better credit score Asset financing or simple loans will be harder to come by. Banks or SACCOs won’t lend you money easily since they have every reason to believe that you won’t pay back.
How to Get Clearance from CRB Kenya ?
We are going to approach this from two planes. In the first case, we will assume that you are a good citizen who pays his or her debts in time. The second approach will assume that you are an already listed defaulter trying to get their name from CRB’s naughty list.
Getting a CRB Clearance Certificate When Not Listed
If you are not listed on CRB, getting the report and clearance certificate is relatively easier. You’ll just have to tender your application through a registered credit reference bureau in Kenya. You will have to pay Ksh. 2200 to get the certificate. Some of your options include:
- CreditInfo Bureau
- Metropol Credit Reference Bureau
- TransUnion Credit Reference Bureau
It is easy to tell if you are listed on CRB or not.If you are atop of your financial life, you can tell if you have any defaulted loans with:
- Micro Finance Institute
- An employer Higher education loans board
- Mobile banking platforms
You default a loan when you breach its repayment terms and conditions. Defaulting your mortgage could be missing 3 consecutive installments while defaulting an MShwari loan is failing to repay on the stipulated date.
If you want to be sure, you can get your credit information report by sending registering with mobile based platforms. SMS name to 21272 and pay Ksh. 50 to get an annual report free of charge.
If you have defaulted your payments and are listed, try to clear the loan with your defaulter. If it is a bank and it is a huge loan you can’t clear in one payment, visit your local branch, renegotiate with your lender and come up with new installments you can manage. You will have to clear your pending defaulted premiums to restore your credit score.
If this is impossible, you will have to release your collateral to cover the loan and clear your name. Once you have settled your scores with the lender, it normally takes a day or two for your new credit information score ratings to reflect on CRB.
CRB Clearance How Long Does it Take
Give yourself up to three days before applying for the certificate after doing your clearances. A day is however enough in some instances since banks send back daily reports to the CRB so technically your information should update on a daily basis. The time between the CRB Kenya clearance certificate application and certificate issuance varies depending on which institution you choose to work with.
Remember that A CRB certificate of clearance is only valid for the day of issuance thanks to the daily borrower record updates. Always strive to make an application just when you need it. Most institutions will frown upon certificates that are months old. The Ksh 2200 will be paid straight to your CRB of choice via a bank account or MPESA.