There is usually the misconception that your records being in the crb is a bad thing. This is not true, the CRB is not a black book for bad debts, it is a source of information for debts. It stores both positive information (information on performing loans) and negative information (information on non-performing loans). You can think of a CRB as a google for debts information.

NOT A BLACKBOOK

CRB IS A SOURCE OF INFORMATION ON LOANS INSTEAD (BOTH POSITIVE AND NEGATIVE)

performing loan is any loan in which: interest and principal payments are less than 90 days overdue; less than 90 days’ worth of interest has been refinanced, capitalized, or delayed by agreement; and continued payment is anticipated.

performing loan is any loan in which: interest and principal payments are less than 90 days overdue; less than 90 days’ worth of interest has been refinanced, capitalized, or delayed by agreement; and continued payment is anticipated.

non-performing loan is a loan that is in default or close to being in default. Many loans become non-performing after being in default for 90 days, but this can depend on the contract terms.

When you apply for a loan from a bank or other approved digital lenders, they submit your loan information to CRBs. When you also repay your loan, this information is submitted to CRB and this improves your credit score. When you have a good credit score a lender can give you lower interest rates on other loans since you will have a good credit history.

When you default on a loan, this information is also submitted to the crb and this may lower your credit score and lower your trust with lenders who want to lend you money hence increasing your interest rate or even denying you a loan.

To improve your credit history and have a good rating with CRB ensure you pay your loans on time as agreed with the lender and when you have a good credit history you can apply for a Clearance Certificate from CRB which indicates you have a good credit history.

You qualify for a clearance certificate when you don’t have loans that are in default or non-performing. You can still get a Clearance Certificate even when you have a running loan as long as the loan is in performing status.

Don’t let anyone lie to you that you can pay them some money then they will remove you from CRB. Contact any of the 3 CRBS listed in our Contacts https://crb.co.ke/contact/ to know whether you qualify for a Clearance Certificate. Remember, the CRB is a source of information of loans or debts but not a Black Book.

By Catherine Mungai

An Outgoing girl based in Nairobi, Kenya who loves life, writing and reading.

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