Ever since the emergence of mobile loans, more and more Kenyans find themselves in a borrowing craze which spirals into a debt trap that eventually ends at the CRB.
CRB is a firm licensed by the Central Bank of Kenya to collect, manage and distribute credit information and has the authority to deny any defaulter from accessing loans from other institutions unless the outstanding loan amount is paid.
The other downside of being blacklisted is that you risk tainting your credit score rating.
A credit score rating refers to the evaluation done by financial institutions on an individual to determine his/her ability to pay back a loan and chances of default.
This means that individuals with higher credit rating have easier access to loans ( larger amounts ) than those with lower ratings.
However, losing your credit rating is temporary. With the right techniques, you can regain your initial credit score and even higher.
Below, we highlight some of these techniques to achieve this.
1. Repay loans in full as soon as possible.
This applies best when you are already blacklisted. Try as much as possible to regularize your overdue accounts with the respective lenders.
This means that the longer you take, the higher you hurt your credit rating.
2. Timely loan repayments on due date.
Ensure that you repay loans upon their due date. This can be achieved by either making partial payments until the loan is repaid in full upon the due date.
Some mobile lenders also provide the convenience of grace periods as well as loan extension duration albeit at a fee.
If you repay your loans on time, you also heighten your chances of receiving larger loan amounts in future.
3. Early loan repayments before due date.
With the exception of a few lenders who discourage early repayments before due dates ( Branch) due to their highly automated systems, most creditors usually encourage early repayments.
This option will also grant borrowers larger loan amounts in their subsequent applications.
4. Give accurate info to lenders.
This is important since it shows genuineness of the borrower especially during registration processes.
Such information may include formal names, national ID number, KRA PIN etc.