Stawika Rewriting History By Helping Young People Have Good Credit History

By Soko Directory Team / July 26, 2018



Mistakes

By Virginia Nyambura

 

Credit history is a term commonly used to refer to the record of a borrower’s responsible servicing of their debts.

There are numerous advantages of responsibly repaying your debts or rather having a good credit history just like there are severe consequences for not paying up what.

A good credit history improves your chances of getting a credit card and having your loans approved.

It also raises your loan limits as it is enough proof that you pay back what you borrow within the time you promise.

Your borrowing capacity is determined by your income and your credit history. For you to get high limits, the bank must be assured that you will pay back within the time frame given.

Paying up your loans on time gives you better leverage and negotiating power to acquire the terms you wish for while securing a loan.

A good credit history also enables you to enjoy low-interest rates on loans and credit cards. Interest, which is the cost you pay for borrowing money, is mostly affected by your credit history. A good credit history, therefore, qualifies you for better, if not best, interest rates.

There is this belief among Insurance companies that people with a poor credit history have a tendency to file more claims hence such people are given higher insurance premiums compared to those with a good credit history.

The rate of Kenyans borrowing shot up from 20 percent to 55 percent in 2009, following a significant rise of quick mobile lenders, bringing a rise in the number of rogue borrowers.

The rise in borrowing increased the number of defaulters as a majority of them did not expect to be caught which contributed to more than 500,000 people getting blacklisted as defaulters by the Credit Reference Bureau (CRB).

The CRB blacklists a borrower after 90 days, past the date agreed, of not repaying a loan. The loans could be from banks, HELB loans, SACCOs, mobile money loans, quick mobile lenders and, surprisingly enough, even borrowed airtime for mobile phones by telecommunication companies.

When you are blacklisted, your credit history is tainted and your chances of accessing credit in the future are reduced as lenders are unlikely to trust you to pay up on time in the future.

The 500,000 list, that is blacklisted, has a majority of the youth who cannot qualify for the National Youth Fund and who are, further, denied the CRB Certificate which is required as part of qualification in most jobs especially those by the Government.

To help young people realize the importance of having a good credit history and to guide them grow the same, Stawika, one of the leading mobile loan app, and the only one that is 100 percent local, has kicked off a product that is specifically tailored towards the youth.

Most mobile loan lenders set their limit at 500 and often have strict measures than one needs to meet before qualifying for the same.

With Stawika, one can get a loan of 200 shillings which if one repays on time he/she automatically qualifies to a limit of 500 shilling and above.

Small emergencies definitely require you to have the Stawika Mobile Application on your smartphone for easy access and repayment of the loan.



About Soko Directory Team

Soko Directory is a Financial and Markets digital portal that tracks brands, listed firms on the NSE, SMEs and trend setters in the markets eco-system.Find us on Facebook: facebook.com/SokoDirectory and on Twitter: twitter.com/SokoDirectory

View other posts by Soko Directory Team


More Articles From This Author








Other Related Articles










SOKO DIRECTORY & FINANCIAL GUIDE

ARCHIVES

2018
  • January 2018 (291)
  • February 2018 (220)
  • March 2018 (279)
  • April 2018 (226)
  • May 2018 (240)
  • June 2018 (178)
  • July 2018 (257)
  • August 2018 (250)
  • September 2018 (256)
  • October 2018 (127)
  • 2017
  • January 2017 (183)
  • February 2017 (195)
  • March 2017 (207)
  • April 2017 (104)
  • May 2017 (169)
  • June 2017 (206)
  • July 2017 (190)
  • August 2017 (196)
  • September 2017 (186)
  • October 2017 (235)
  • November 2017 (253)
  • December 2017 (266)
  • 2016
  • January 2016 (167)
  • February 2016 (165)
  • March 2016 (190)
  • April 2016 (143)
  • May 2016 (246)
  • June 2016 (183)
  • July 2016 (271)
  • August 2016 (250)
  • September 2016 (234)
  • October 2016 (191)
  • November 2016 (243)
  • December 2016 (154)
  • 2015
  • January 2015 (1)
  • February 2015 (4)
  • March 2015 (166)
  • April 2015 (109)
  • May 2015 (117)
  • June 2015 (121)
  • July 2015 (150)
  • August 2015 (157)
  • September 2015 (189)
  • October 2015 (171)
  • November 2015 (174)
  • December 2015 (208)
  • 2014
  • March 2014 (2)
  • 2013
  • March 2013 (10)
  • June 2013 (1)
  • 2012
  • March 2012 (7)
  • April 2012 (15)
  • May 2012 (1)
  • July 2012 (1)
  • August 2012 (4)
  • October 2012 (2)
  • November 2012 (2)
  • December 2012 (1)
  • 2011
    2010
    2009
    2008
    2007
    2006
    2005
    2004
    2003
    2002
    2001
    2000
    1999
    1998
    1997
    1996
    1995
    1994
    1993
    1992
    1991
    1990
    1989
    1988
    1987
    1986
    1985
    1984
    1983
    1982
    1981
    1980
    1979
    1978
    1977
    1976
    1975
    1974
    1973
    1972
    1971
    1970
    1969
    1968
    1967
    1966
    1965
    1964
    1963
    1962
    1961
    1960
    1959
    1958
    1957
    1956
    1955
    1954
    1953
    1952
    1951
    1950