Credit Reference Bureaus (CRBs) are companies that gather information on borrowers from lending organizations including banks, microfinance institutions, SACCOs, etc. These details cover a borrower’s loans when they were taken, how long it took them to repay, whether they made their payments on time and other things.

A very low credit score on your CRB listing is referred to as a “CRB Blacklisting,” which is a word that is frequently used. A extremely low credit score shows that you have either missed payments on several of your loans or have not complied with the terms of your loan agreements. Since every lender takes this information into account before extending you a loan, it has become quite important.

How can we clear our names if we’ve been blacklisted?

• Be completely frank with yourself.

Find out which banking institution blacklisted you by obtaining your personal report.

You probably have an extremely low credit score on CRB, which will mark you as a defaulter because you haven’t made your loan payments on time.

If you guaranteed someone whose debt was repaid in default, you can also appear on the list.

• Pay off your debt by contacting the lending institution that listed you.

Obtain the information from the bank that listed you. Get in touch with them and work out a repayment schedule so you can pay off your loan. Negotiate the loan’s terms to make your loan installments manageable, then persevere. Try to reduce the balance of your debt by at least 3% per month.

If you pay back a sizable portion of the debt, some financial institutions could occasionally agree to delist you. So that your credit score can increase, stay in touch with them and keep your word.

• Keep up with delisting communications and pay your debts on time.

Make sure you consistently make the repayment you agreed to after speaking with the financial institution. Make friends with the financial institution by continuing to speak with them. As much as possible, collaborate with your relationship manager or bank manager while keeping them informed of your progress.

The organization that blacklisted you should write to the CRB and request that they remove your name from the negative listing once the loan has been properly returned.

• Obtain a CRB clearance certificate

Once your debt is paid off, submit an application for a CRB Clearance Certificate. You must submit an application through a CRB-licensed business in order to obtain this certificate. The certificate will cost you Kes 2,200. 

The following credit reference bureaus have been granted licenses by the Central Bank of Kenya:TransUnion Africa, Creditinfo Kenya and Metropol Corporation 

Make sure you make prudent financial judgments when it comes to taking on and managing debt now that your CRB listing status has improved, i.e. you have a higher credit rating.