SALARY ADVANCE OR PERSONAL LOAN, WHICH IS THE BETTER OPTION?

Sometimes, your monthly expenses can surpass your salary. There is always a choice of dipping into your savings to meet the needs that arise; however, even savings can fail to rescue you. That being the case, you might consider taking a personal loan or a salary advance. Both options appear similar and achieve the same goal of meeting your immediate financial needs, but why choose one over another? This article distinguishes the salary advance loan from the personal loan, and in the process, we can figure out which is the better option.

DEFINITIONS.

A salary advance is an unsecured loan taken against your salary. The loan is extended to salaried professionals and recovered in installments at low-interest rates. The borrower can use the loan for any purpose, such as emergency expenses, medical expenses, etc. At Elevate Credit, we call it Inua Salo.

A personal loan refers to an unsecured loan that a borrower takes to meet short-term financial needs. The eligibility criteria are pretty straightforward, with flexible payment options.

STRENGTHS OF PERSONAL LOANS.

Research by Reel Analytics about the state of digital lending in Kenya indicates that in every 100 Kenyans, 55 had acquired loans from digital lending applications or platforms. The majority of Kenyans preferred personal loans. Below are some advantages of personal loans over the salary advance loan.

Flexible loan amounts – The amount of cash available to you in a salary advance loan depends on a person’s salary, while a personal loan mainly depends on your credit score. This availability of flexible loan amounts based on an individual’s credit score can benefit clients who don’t have a formal job or their salary levels are below the requirement for a salary advance loan.

Availability – personal loans are readily available, and almost every credit company offers personal loans because of their simplicity in terms of requirements.

More versatile – Due to the flexibility and the amount offered on personal loans, they have several purposes; this can entice most people seeking urgent cash with no payslips to show the lender.

Impact on the credit score – When you take a personal loan and pay it on time, you boost your credit score much faster based on the frequency of taking the loan and repaying.

STRENGTH OF SALARY ADVANCE LOAN (INUA SALO).

Salary Advance loan is becoming popular by the day. This increased popularity can be attributed to the current inflation rate of 5.73%, reflecting the high cost of living that challenges the working population to pull through the month, depending solely on their basic salary. A fixed salary at the end of the month is supposed to guarantee financial security, but there is a possibility of facing a financial shortage. The purpose of the Inua Salo loan is to come through for you during such a time of need. The advantages of a Salary advance loan include:

Salary advance loan (Inua Salo) is more flexible – The procedure to take Inua Salo has been made quick and efficient at Elevate credit to make it hassle-free for you. The loan is applied by simply using your smartphone once you download the Elevate Credit mobile app from the Google play store. The salary advance loan is deducted from your payslips, making the repayment process more straightforward.

Rates of interest – The interest levied on personal loans depends on factors such as a good credit score with a debt-to-income ratio below 35%, which young employees may lack. The above scenario results in high-interest rates or collaterals demanded so that the young employee can secure a personal loan. Inua salo, on the other hand, charges lower interest rates and doesn’t require collateral.

Easy Repayment – The repayment tenure of an instant personal loan can be as long as five years. Non-repayment can affect your credit score and lead to the rejection of future loan applications. Inua Salo requires an MOU with your employer, which means that it will be hard to miss payments as the loan repayments will be deducted by your employer automatically from your salary.

Helping you get a decent credit score for a loan – Taking a personal loan almost certainly requires a good credit score. Most young employees cannot take loans because they don’t have a credit history and need to build it. Taking any form of credit helps boost your credit score; hence Inua Salo will also increase your credit score.

CONCLUSION.

A salary advance loan helps you pay off unexpected expenses, be it hospital bills or simply money for vacation. The Inua salo benefits both the employee and the employer because it prevents junior employees from going into cash crunches from the early days of their careers. Elevate credit’s salary advance application is seamless and hassle-free with almost instant approval and quick money transfer to you. Get in touch and let us help you do more with your salary.

NEGATIVE CONSEQUENCES OF BEING LISTED BY CRB

The Central Bank of Kenya has licensed the Credit Reference Bureau (CRB) to collect, store and collate credit information on individuals and companies from different sources and provide information in the form of credit reports upon lender’s request. To get listed by CRB means that your loan has been labeled as non-performing consistently for some time now. By non-performing, it means that you did not attempt to make any partial payment during the loan tenure. The effects of being negatively listed by CRB are felt almost immediately. Below are some of the negative consequences of being listed by CRB,

Denial of future loans

This is the most obvious consequence. The main objective of CRB is to blacklist defaulters and stop them from taking future loans until they settle their outstanding amounts. This is achieved through sharing your credit profile with credit institutions to make lending decisions.

Negative Impact on your Credit score

A credit score is a number lenders use to help them decide the possibility of getting paid on time if they give a person a loan. Your credit score depends on your credit history. The credit score has the potential to impact your loan application and the interest rates that you will be charged. An adverse credit score attracts typically higher interest rates since the risks of lending money to such an individual are high. Being black-listed by CRB will change your credit score for the worst.

Loss of employment opportunity

Do not be surprised if you land on the job of your dreams then your potential employer requests for a CRB clearance certificate. Employers may do a credit background check as a requirement for recruitment to ascertain the creditworthiness of their job applicants before considering them for employment. A credit background check helps employers eliminate any potential risk of employee fraud.

Contesting for a Public office job

Article 73(2)(a) of the Kenyan Constitution, as well as Section 20(3) of the Public Officer Ethics Act, Cap 183 of the Laws of Kenya which stresses leadership and integrity. Demands a certificate of reference from credit reference bureaus, amongst other clearances, has been ratified as part of integrity clearance for those applying for jobs in the public service. Your political ambitions will come to an abrupt end because, as part of requirements, short-listed candidates are required to present their certificate of reference from the CRB so that they are cleared to run for office.

When did you last check your credit report with CRB? Don’t wait until you are ready to apply for a loan or a public office to check your credit report. Just like any other formal document, credit reports can have inaccuracies. If not inspected before the application, they may give you a wrong picture before a potential employer.

Due to the prevailing economic hardship, it is normal to need some extra cash. Applying for loans to settle some expected expenses such as school fees or unforeseen expenses such as emergency medical bills is somewhat inevitable due to the ravages of COVID-19. Lenders recently have embraced risk-based borrowing, this is because higher-risk borrowers face a higher interest rate while lower risked borrowers get to enjoy a much lower interest rate. However, lenders also recognize that the amount borrowed should be suitable in such a way that the repayment can be made without putting the borrower between a rock and a hard place, a situation which has a potential of turning the borrower into a defaulter. With regards to that, lenders consider a number of factors before lending you money. This article seeks to answer that lingering question at the back of your mind, why was my loan application rejected?

1. Bad credit history.

It is a no brainier that when you default in paying loans you get a bad credit history. This record is available to lenders at the Credit Referencing Bureau (CRB) and this can be a reason contributing to the rejection of your loan. However, another reason contributing to your negative credit history is borrowing too many loans within a very short period of time. This is because such a situation makes the lender sceptical about your ability to pay all the loans that you have plus the one that you are just about to take.

• High debt to Income ratio.

You may have paid all your outstanding debts and your credit history is OK, but still your loan application is denied. This can be as a result of debt-to-income ratio (DTI). What this means is, the sum of all your debts divided by your monthly income. The DTI should be equal to or less than 40% which signals a healthy balance of debt to income. Make sure you keep that ration under radar.

• Dubious loan purpose.

Although personal loans are flexible in the way you can use it, lenders may not allow you to use the funds for certain things such as illegal or partially illegal activities like gambling. You need to make sure that the loan product matches the purpose, for example lenders can not allow you to borrow loan products for school fees and use the funds for investment. That is why there are different loan products for you, select appropriately.

• Incorrect details.

Loan application require several paperwork such as income information, government id or passport etc. If you are missing any of the required documents, your loan application will be denied. It is also worth noting that the information that you provide to lenders during loan application will be verified and if inconsistencies are found, your loan may be rejected

• Unstable employment or insufficient employment history.

Lenders require that any income listed in your application is consistent and therefore assume that it will remain so moving forward. You may be required to present three months of payslips as a proof of stable employment. This is because your employment has a direct impact on your ability to repay the loan.

Pro Tip: Don’t keep applying if your loan keeps on getting rejected, think very carefully before applying for more credit. This is because any credit application you make whether successful or not will show up in your credit file. Several applications in a short period of time might make lenders think you are desperate for cash. This may damage your credit rating further.

SUITABLE LOAN FOR A BAD CREDIT SCORE.

It is not unusual for someone to fail in loan obligations and get bad credit. When that happens, it doesn’t mean that it’s the end in terms of you getting a loan in the future. When you have a bad credit, not all loans are good for you, some can land you into a bigger hole than the one you are in at the moment. This contains information that is gathered on loans for individuals with bad credit by comparing lenders and their rates so as to help you choose the right loan for you.

When you apply for a loan, lenders will look at your credit score and credit history so as to know how much of a risk is it to them to lend you money. When you have a low credit score that is interpreted as having a bad credit. This can be caused by factors such as short credit history or late payments. If you have a bad credit, you need to narrow down your search to lenders that offer loans for bad credit. These loans can be secured (has a collateral like a home or car) or unsecured. Some lenders have stricter requirements than others, which makes it crucial to look around for the best option.

HOW TO CHOOSE THE BEST LOAN COMPANY FOR A BAD CREDIT LOAN.

There is no single loan company that is the best for a bad credit loan, however, when looking for a loan company, there are a few factors you need to tick on your check list;

1. Eligibility requirements. Lenders often list their eligibility requirements on their websites. This usually includes minimum credit scores, maximum debt to income ratio, minimum income levels etc. Take time to check whether you qualify.

• Interest rates and fees. Different lenders use different criteria to calculate your interest rates. Compare the interest rates, fees and prepayment penalties across all lenders to determine which is ideal for you. It goes without saying that the one with the cheapest loan interest will be best for you. You need also to be on the lookout for hidden fees.

• Repayment terms. Repayment terms for a personal loan can range from months to a year. A shorter repayment period means you will be out of debt sooner and you will pay less in the overall interest rates. Your monthly bill however will increase. A longer repayment period will have you paying a less monthly bill but you will pay more in interest rates. Decide which one works best for you.
• Type of lenders. You can get personal loan from banks, Saccos, credit unions or online lenders. Online lenders with no doubt have the lowest rates but you miss the in-person service. Credit companies like Elevate Credit presents you with more options, you can take a loan online and still pay us a visit at Sameer Business Park, Block E1, 1^ST Floor.

REASONS WHY YOU SHOULD AVOID SHYLOCK LOANS.

Shylocks, also known as loan sharks, target people who need to borrow money and can’t access it from legal sources. At first, they might seem friendly but borrowing money from them is never a good idea under any circumstance. Shylock loans are enticing because of the reduction in the number of application steps, and they are easily accessible to everyone, even if you don’t have a great credit score. The risks, however, outweigh the benefits, as is highlighted in this article.

1. HIGH-INTEREST RATES.

Shylock loans come with very high-interest rates. They are often way above the interest rates charged by lending companies. This makes it expensive to repay the loan. Because of the high-interest rates, it is tough to complete the loan payment; you might end up taking another loan to pay off a shylock, which brings you closer to finding yourself in a debt trap.

• HARASSMENTS AND THREATS.

When dealing with shylocks, falling behind on payments often results in harassment and threats. There have been reports of people being attacked and intimidated by shylocks. Since they are not a registered business with a government body overseeing their operations, any legal complications cannot be handled with a generic legal system.

• COMPLICATED RULES.

Some payday loans (Inua Salo) put weekly interest rates, some put annual, and some days, such complicated interest rate calculations make it difficult for the borrower to calculate the total amount accurately. This confusion allows the borrower to be exploited through absurdly high-interest rates.

• NO IMPACT ON THE CREDIT SCORE.

Shylock loans are not reported to the credit rating agencies, and as such, it does not improve your credit score. If the borrower’s credit score is not improved, there is no point in taking the loans. You will be missing out on the opportunity to improve your credit score and get loans with favorable interest rates at a legal credit company.

CONCLUSION.

Loan sharks are loans at an expensive cost, but they come with their benefits. Though the benefits do not overthrow the negatives, people choose to use them because sometimes it is the only way. There are multiple reports and studies that researched the implications of loan sharks on the rest of the economy. It is unfair that Kenyans have to pay high-interest rates to shylocks to feed their families. Elevate Credit is here to offer an alternative to this nightmare. Get affordable loans quickly and efficiently following a hassle-free application process. Your Wallet, Mind, and Spirit are safe with us.

 HOW TO IMPROVE YOUR CREDIT SCORE.

A good credit score. You must have heard the term more times than you can count. A credit score impacts how much money you can borrow, at what interest rate, and even how certain employers may view your job application.  A bad credit score can negatively impact your loan application in several ways. It can lead to your loan application being rejected or getting a loan with high-interest rates. If you have a bad credit score, it does not mean you are doomed forever; all you need to do is follow the specific strategies outlined in this article to improve your credit score.

1. Build Your Credit History.

When you have little or no credit history, it is difficult for a credit company to assess you, lowering your credit score. This is a common problem among young people and foreigners in a new country. Opening new credit accounts is an important step in building your credit file. This will be an excellent foundation to start laying down a good track record as a borrower. You can use some credit builder loans like salary advance loans (Inua Salo) and help create a good credit history.

• Make Regular Payments on Time.

Making full payments on time each month is an excellent way to showcase that you are a reliable borrower. An old and well-managed credit account will boost your score incredibly. Make it your rule you don’t miss loan payments by more than 25 days because, after 30 days, you will be listed at the CRB. Setting up automatic payments for the minimum amount due can help you avoid missing a payment; make sure not to overdraft your bank account.

• Check For Errors and Report Any Mistakes on Your Report.

Request your credit report and check for mistakes no matter how small, even a mistyped home address. Ensure all information in your credit report is accurate and up to date. If you spot a mistake, make sure you have it changed. If negative information is correct but happened under exceptional circumstances, e.g., losing your job, you request a notice of correction and explain it with evidence. This can go a long way in improving your credit score.

• Catch up on past-due accounts.

Late payments can remain on your credit report for several years, but having them sorted can be suitable for your credit scores. Additionally, it will help you avoid additional late fees and late payments being added to your credit history. Bring the past-due accounts to current and start paying them off; the results will improve credit score.

• Limit How Often You Apply for A Loan.

Taking short-term loans to build your credit history is fine but don’t overdo it, generally limit how often you submit loan applications. Each application generates an inquiry; inquiries can add up and have a compounding effect on your credit scores. The results of these play a minor role in your credit score, but it will be a good practice limiting how often you apply for a loan.

• Provide Your Address.

When you provide lenders with an accurate address, they can trust you once they have your address avoid moving home if you can. This is because lenders like to see stability in your life. Moving home frequently may make lenders think, for example, that you are having trouble paying rent. This does not inspire much confidence in your ability to repay the loan, impacting your credit score.

Improving your credit score is a good goal to have, especially if you’re planning to apply for a loan or to make a significant purchase, such as a new car or home. It can take several weeks, and sometimes several months, to see a noticeable impact on your score when you start taking steps to turn it around. However, the sooner you begin working to improve your credit, the sooner you will see results.

HOW TO GET OUT OF A DEBT TRAP.

According to Bmc psychiatric, 60.9% of Kenyan residents had moderate to severe stress in 2021. Debt is undeniably among the biggest causes of stress in Kenya. Even before the pandemic and everything was running as expected, many people still find themselves falling behind in their loan repayments. Defaulting not only places significant risk on the collateral but also dries up your credit line for future consideration.

COVID – 19 has made things worse for the common mwananchi. The government initiated some drastic measures such as lockdowns that required people to work from home to fight the virus. For a country like Kenya, where roughly 14.5 million individuals were employed in the informal sector in Kenya, this spelled disaster. Many Kenyans were suddenly out of work and facing debt default. So, when you find yourself in a debt trap, how do you escape it?

1. Assess Your Debt Levels.

Getting into a debt trap doesn’t happen overnight. In the beginning, you have several credit lines open to you, and you start making use of them. When you are at risk of defaulting, you start engaging in the habit of borrowing Peter to pay Paul. However, this cycle catches up with you, and you start defaulting simultaneously. You won’t notice the hole you are digging for yourself until it is too late and you are in a debt trap. The first thing to do is to understand your position. Take time to assess and record all your debts into a spreadsheet. The information to capture is how long it has been due and the interest rate accrued. Depending on the loan complexity, you may want to seek the help of a professional to help you with this assessment.

• Prioritize Your Debt Repayments.

After you have assessed your debt levels, the next step is devising a way to take care of these debts and determining which order you should do so.  You will have to prioritize your debt repayment, starting with the more expensive debt that accrues higher interest rates. On the same note, it is good to ensure the most expensive loans are as short-term as possible.

• Stop Accumulating More Debts.

You can’t get out of a hole by digging a giant hole for yourself. Similarly, stop pilling more debts when you want to get out of debt. However, this is easier said than done. This is because heavily indebted people find themselves in situations where the only way to survive is by accumulating more debts. This is not good because your credit score is terrible by now, and you lend at a higher interest rate. This is because you present a risk to the lenders in terms of defaulting; thus, the lenders need to protect themselves from such threats, they are forced to charge you a higher interest rate. Therefore, if you can help it, stop accumulating more debts.

• Restructure The Loan If Possible.

Unexpected occurrences like the emergence of COVID-19 out of the blues can negatively affect you and your ability to meet your debt obligations. You should approach your lender and ask for loan restructuring when this happens. Loan restructuring involves stretching the repayment period to reduce the monthly payments. However, this would mean that you will pay more in the long run. It is still a good thing for the simple fact that it helps you avoid defaulting.

• Consolidate loan.

It can be very stressful when you have many loans from different sources, all having different maturity timelines. It is a good idea to consolidate your loans into one. The ideal lender to help you with loan consolidation should be easier to deal with regarding the cost of the loan and repayment terms. This can simplify your life and get you out of a debt trap.

• Increase your income streams

If you are a Kenyan, you probably heard the phrase “Dawa ya deni ni kulipa.” The real solution to getting out of a debt trap is improving your revenue streams. This can range from getting more revenue from your current channel or diversifying to get more income. The additional revenue generated should be prioritized to clear your debt levels.

CONCLUSION.

Debt is not bad; it can help you get a financial advantage and grow to your desired heights. However, if you abuse this privilege, it can change your life drastically, and within no time, it can be very straining that you will feel you are in a debt trap. At Elevate Credit, we care about your Wallet, Mind, and Spirit. The tips provided above are meant to elevate you from the debt trap and bring you to the financial freedom where you are in control.

HOW TO GET A START-UP LOAN FOR A SMALL BUSINESS.

Getting a start-up loan for a small business is no child’s play. It is more challenging for a start-up to get a business loan than an established business. However, this does not mean it’s impossible. You can boost your odds of getting a business loan by following these five simple steps. Here’s how to get a start-up business loan.

1. EVALUATE THE TYPE OF LOAN YOU NEED.

Small and medium-sized businesses turn to banks and Saccos as their financing option; by doing this, they overlook various types of business financing that can help kick start their business. For example, there are online loans, Asset-based financing, Invoice discounting, among other options. After evaluating the type of loan you need, you can decide which financing option is best for you and prepare your application tailored specifically for this loan.

• CHECK THE BUSINESS AND PERSONAL CREDIT SCORES.

Lenders use credit scores to gauge the risk that the borrowers pose. Applicants with a higher credit score show signs that they can be trusted to make payments on time; hence they have higher approval odds.  A brand-new start-up does not have a credit history and, therefore, no credit score.

If this is the case, you will need to guarantee the loan personally. What this means is if the business is unable to repay the loan, you will refund back the loan using your funds. Lenders will therefore have a look at your credit score. Prepare for a loan application by requesting copies of your business credit reports and checking your credit score beforehand. This will help you gauge your odds of the loan being approved.

• GATHER AND PREPARE THE REQUIRED DOCUMENTS.

The documents required for a start-up business loan vary from lender to lender. However, there are some standard documents that lenders need to assess and verify the applicant’s identity and the business’s existence. This includes; tax returns and financial records like bank statements, accounts receivables, and outstanding invoices. You can boost your odds further by preparing a comprehensive business plan to demonstrate to the lender that the business is financially stable and can repay its debts based on future net revenue projections.

• COMPARE LENDERS.

You may qualify for a start-up loan through multiple lenders. To filter the lenders and identify the one that is right for you, consider the following factors;

1. Interest rates. The interest rate on loans should be close to the interest rate currently in the market. Higher interest rates will mean you pay more for the loan, a very low-interest rate is often used to attract you to the loan with extra fees.
2. Fees and Costs. There are some fees and costs that business lenders charge. One such fee is the origination fee, which covers the costs of handling paperwork and verifying application information. Others have penalties for borrowers who pay off their loans early or late. These fees, without a doubt, can increase the overall cost of borrowing.
3. Lender reputation. Take your time to read online reviews to evaluate the lender’s stature among current and past borrowers. Network with members of your business community to learn about others’ experiences with the financial institution. If there are any red flags, don’t mistake them for maroon; consider choosing another lender.

• SUBMIT YOUR APPLICATION.

Once you have selected a lender from your research, familiarized yourself with the application process, and compiled the correct documents, it’s time to submit your application. The application process varies from one lender to another; look into whether you can apply online or need to visit the branch. Once you have submitted your application, a lender representative may contact you to request additional documentation as you wait for the feedback.

Those are the five complete steps you need to take when considering applying for a business start-up loan. At Elevate credit, we are committed to transforming your wallet, elevating your mental health, and uplifting your spirit. Get in touch with us today for more consultation.

HOW TO EVALUATE AND CHOOSE THE RIGHT BUSINESS LOAN.

For small business owners and entrepreneurs, the most important requirement for a profitable business venture is having a good business idea. However, that is not the only requirement, you need access to funds for you to implement your business idea. Will Rodgers once said, “Even if you are on the right track, you’ll get run over if you just sit there.”, your business needs to grow and growth is not cheap, therefore securing a loan is paramount.

Businesses are spoilt for choice when it comes to the loans available for them. Among the business loans available are asset financing, invoice discounting, working capital loan, etc. There are enough loan types and formats to make your head spin, so how do you evaluate the best loan to choose for your business?

1. Consider interest rates.

It’s a no-brainer you have to consider the interest rates, be smart about comparing different interest rates from different loan providers, and give it more concern when terms are higher. Interest rates have a direct influence on your borrowing cost. When the interests are low it means more of your payment will go towards the principal than the interest, hence you can get rid of your loan faster.

• Look at repayment terms.

Repayment terms dictate how much time you have to pay off your loan and shape your payments schedule as well. Ask your loan provider if you can pay off the loan early or you have to wait until maturation. These are tiny details but can save or cost the business tens of thousands of dollars when the dust settles.

• Consider application fees.

Some business loans will require you to pay to apply while others don’t, you should ask if there are any fees associated with the application. Some lenders will charge you an application fee, while others will charge you fees for items tied into the application such as the cost to run your credit report.

• Consider the business needs.

When choosing the right business loan, make sure that it aligns with the business’s needs at the moment. Different loan products are tailored to meet different business needs, hence by simply knowing what your business requires, you can be able to select the right business loan.

• Collateral.

Some lenders require you to offer personal or business collateral to back up the loan in case the business defaults. This can include real estate, equipment, vehicle, and other business assets. Make sure you understand the collateral requirements and risks before getting into a business loan.

The bottom line is don’t feel rushed into taking a loan product. It pays to take your time and do your research to find the best business loan for your business. Compare lenders and read reviews before selecting the right loan for you that will be ideal for your unique business needs. Getting a business loan from a lender who has your back will be positive for your business. At Elevate Credit, we care more than just about your wallet, our three-dimensional mantra, wallet, mind, and spirit, binds us to our promise to ensure you get the best loan product for your business. Get in touch with us today and let’s talk about business loans.

HOW BEING LISTED BY CRB CAN AFFECT YOU.

The Central Bank of Kenya has licensed the Credit Reference Bureau (CRB) to collect, store and collate credit information on individuals and companies from different sources and provide information in the form of credit reports upon lender’s request. To get listed by CRB means that your loan has been labeled as non-performing consistently for some time now. This means that you did not attempt to make any partial payment during the loan tenure. The effects of being listed by CRB are almost instantly felt; below are some of the consequences of being listed by CRB.

Denial of future loans.

This is the most obvious consequence. The main objective of CRB is to blacklist defaulters and stop them from taking future loans until they settle their outstanding amounts. Achieves this by sharing your credit profile with credit institutions to make lending decisions.

Negative Impact on your Credit score.

A credit score is a number lenders use to help them decide how likely they will be repaid on time if they give a person a loan. Your credit score is built on your credit history. The credit score has the potential to impact your loan application and the interest rates that you will be charged. An adverse credit score attracts typically higher interest rates since the risks of lending money to such an individual are high. Being black-listed by CRB will change your credit score for the worst.

Loss of employment opportunity.

It is no surprise to find a job that fits you, but the employer asks for a CRB clearance certificate. Employers may do a credit background check as a requirement for recruitment to ascertain the creditworthiness of their job applicants before considering them for employment. This helps employers eliminate any potential risk of employee fraud.

Contesting for a Public office job.

Article 73(2)(a) of the Kenyan Constitution, as well as Section 20(3) of the Public Officer Ethics Act, Cap 183 of the Laws of Kenya, which stresses leadership and integrity, a certificate of reference from credit reference bureaus amongst other clearances, has ratified as part of integrity clearance for those applying for jobs in the public service. Your political ambitions can come to an abrupt end because, as part of requirements, short-listed candidates are required to present their certificate of reference from the CRB for that they may be cleared to run for office.

When did you last check your credit report with CRB? Don’t wait until you are ready to apply for a loan or a public office to check your credit report. Just like any other formal document, credit reports can have inaccuracies. If not inspected before the application, they may give you a wrong picture before a potential employer.