Ever since the financial institutions like Saccos, Banks, HELB and MPESA started forwarding lists of defaulters on CRB, the need for your name to cleared and hence improve your chances of getting a second loan have risen. Clearing your debt is no longer enough as you have to get CRB clearance to regain your borrowing power i.e. credit score.
A CRB report informs you whether you have been listed as a loan defaulter or not. If CRB Kenya has your name on its list of defaulters, you have lower chances of getting a job especially if the employers use CRB records as hiring criteria. Most companies and organizations avoid hiring loan defaulters.
Insurance companies also charge higher premiums in comparison to someone with a better credit score. Asset financing or simple loans become very hard to get. Banks or Saccos avoid lending you money as they have a reason to believe that you will not pay them back.
Getting a CRB clearance certificate when not listed
When you are not on the list of defaulters, then getting a clearance certificate or report is very easy. You will have to tender your application through one of the licensed and registers credit reference bureau in Kenya. You will be required to pay Kshs.2200 to get the certificate.
It is easy to identify whether you are listed on CRB or not. If you are atop of your finances, you can tell if you have any defaulted loans with a bank, an employer, HELB or mobile banking platforms.
You default a loan when you breach the repayment terms and conditions. Defaulting your financial institution loan could be missing three consecutive installments while for Mshwari loan is failing to pay on the stipulated date.
If you want to be sure, you can get a credit report by sending an SMS with your name to 21271 and pay Kshs.50 to get an annual report free of charge, use a registered mobile number.
How to get the CRB clearance if you are a defaulter
If you have defaulted payments on a loan and you are listed the first step is clearing the loan. If it is a bank loan and it is huge visit the bank and renegotiate the loan and come up with new installments that you can manage. You need to clear your pending defaulted premiums to restore your credit score.
Once you have settled your loan with the lender, it usually takes a day or two for your new credit score ratings to reflect on CRB. Give yourself up to three days before you apply for the clearance certificate after doing clearances. A day may be enough in some instances as banks send back daily reports to the CRB hence your information should update on a daily basis.
The time between 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 it is issued and so make an application just when you need it. This is because most institutions will frown upon a certificate that is months old. The required Kshs.2200 can be paid to your CRB of choice via a bank account or MPESA.