A friend has just received a message from her mobile service provider asking her to repay her Sh 500 loan which is long overdue or they will forward her name to a Credit Reference Bureau (CRB). She doesn’t pay any mind to the message. She doesn’t realize the implications this might have on her future.
CRBs are Credit Reference Bureaus which collect, manage and disseminate customer information to lenders within a provided regulatory framework.
When you defer paying that Sh 500 loan you took from your mobile provider or even the bank when you were broke, Credit Reference Bureaus will have that information. In future it will be hard for you to get a loan from any financial institution just because of the Sh. 500 you did not think was worth paying back.
The other thing is that current employers ask for your credit information from a CRB and you might miss out on that great job opportunity you were looking forward to. Check with them to know if you are on the blacklist, you never know. Who wants to work with someone who is not trustworthy anyway?
Once your information is forwarded to them, they will blacklist you in the system for 5 years. CRBs complement the role played by banks and financial institutions in extending financial services within an economy and help lenders make faster and more accurate credit decisions.