With financial institutions like banks, Saccos, HELB, Tala, Branch, M-Pesa, among others opting to list loan defaulters on the Credit Reference Bureau (CRB), the need to clear one’s name for a second loan has been on the rise. Unknown to most people, clearing one’s outstanding debt is no longer enough as one has to get a CRB clearance to regain their borrowing power.
Whether one has previously asked any financial institution for a loan or not, they will require the CRB certificate to affirm to potential lenders that you are a ‘good citizen.’ Upon acquiring the clearance, one does need to prove to the lender that they have been cleared since the financial institutions have access to the information.
You are noted to have defaulted on a loan when you breach its payment terms and conditions, for example, defaulting a Mshwari loan is failing to repay on the stipulated date. If you have defaulted your payments and are listed by the CRB, you may need first to clear the loan with your lender.
Additionally, if it is a bank or an enormous loan that you cannot clear in one payment, you will have to visit your local branch and renegotiate with your lender on the new terms of settling the debt. It is only until you clear your pending defaulted premiums that you will restore your credit score.
Why You Should Care about CRB Clearance
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 higher 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 payback.
ALSO, READ How to check CRB status online Kenya
How to Get CRB Clearance in Kenya
We are going to address this from two levels. In the first case, we will feign that you are a good citizen who pays his or her debts in time. The second method we 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 moderately more straightforward. You’ll just have to present 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:
- iCredit Info
- Metropol Credit Reference
- Credit Reference Bureau Africa Limited t/a TransUnion
It is easy to tell if you are listed on CRB or not. If you are atop of your financial life, you can know if you have any defaulted loans with:
- A bank
- 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 three 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.
How to Get the CRB Clearance if You Are a Defaulter
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 usually takes a day or two for your new credit information score ratings to reflect on CRB.
How to Get a CRB clearance Certificate. Methods to use.
CRB has licensed three institutions to disseminate Kenyans credit information, including Metropol, Creditinfo, and Credit Reference Bureau Africa.
You register by visiting their website metropol.co.ke or metropolcorporation.com or by dialing *433# on your mobile phone for Safaricom customers only.
You will, however, be required to pay a registration fee of Ksh100, after which you will receive a code in the form of SMS, you will then use the code to access your report on the website.
Whoever decides to get their credit information from TransUnion will be required to visit crbafrica.com or transunionafrica.com, where you will fill in the forms and send them back.
For you to always get credit reports from Transunion, all one has to do is send their name to 21272, a message that will cost Ksh50.
Just like the other two, one has to simply visit creditinfo.co.ke to register and will afterward be getting an annual report on their credit status on your email address.
However, if you have already registered in any of the three CRSs, you can quickly request your clearance certificate from the specific website(s) for free.
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 regular 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.