Credit Reference Bureaus (CRBs) maintained that the sole responsibility for approval and denial of loan applications lies with financial institutions.
In a joint statement dated Friday, November 11, Metropol, TransUnion and Creditinfor indicated that banks and other financial institutions also consider other factors other than the credit score.
However, they acknowledged that credit reports influence banks’ decisions.
“Only finance providers can decide whether to offer customers credit or decline their application.
“Credit bureaus provide some of the information lenders use when making the decision, but each finance provider has their own individual lending policies and criteria for granting credit to a consumer,” read the statement in part.
Nonetheless, Kenyans were urged to comply with the payment of loans to have good credit scores.
“Payment history is the most important aspect of a credit score because it shows how consumers have managed their finances, including any late payments.
“A consumer’s payment history is entirely within their control and responsibility just as improving their credit score is made possible by a good repayment culture that includes borrowing wisely and repaying promptly,” read the statement in part.
CRBs were responding to a directive by the Central Bank of Kenya (CBK), which directed the bureaus to include a statement in their reports in a move to help Kenyans access loans efficiently.
CBK mandated all CRBs to indicate the statement ‘A customer’s credit score should not be used as the sole reason by a lender to deny a customer a loan’ in their reports.
The three bureaus welcomed the decision indicating that the move would give Kenyans an opportunity to access credit.
Source: kENYANS.CO.KE
