CRB Clearance: How to Clear Negative Listing from CRB

CRB clearance involves the steps of clearing negative listings and negative credit information from your credit report. CRB clearance refers to the process of obtaining a certificate or report from a Credit Reference Bureau (CRB) that shows an individual or business has no outstanding negative listings, such as loan defaults, or any other adverse credit information. This certificate verifies that the person or entity has cleared all loans and obligations listed in the CRB database, confirming that they have a clean credit record. CRB clearance is crucial for borrowers because majority of financial institutions and lenders use this information to evaluate creditworthiness before approving new loans, credit facilities, or other financial services. It is a common requirement for individuals or businesses seeking to restore their credit standing after being negatively listed or to demonstrate their reliability in future credit transactions. Therefore, CRB clearance process helps borrowers and lenders engage and build good relationships for future borrowing and lending decisions.

This guide shows and explains all necessary steps and processes for clearing negative listings from credit reports and obtaining a certificate of clearance from CRB providers.

1. Access a Comprehensive CRB Report

Accessing a CRB report involves the process of obtaining an updated credit report from one of the three licensed Credit Reference bureaus in Kenya. Hence, obtaining a detailed and comprehensive credit report should be the first methodology when intending to clear your negative listing or loan default status in your credit report. A credit report is a detailed record of your credit history maintained by Credit Reference Bureaus (CRBs). A credit report contains information about your personal information, credit accounts, payment history, and public records.

Before starting CRB clearance processes, you should first access a detailed credit report from Credit Reference Bureaus (CRB); hence, reading my detailed guide on how to check and obtain a credit report should be priority. This guide shows and demonstrates how you can obtain and request both a free and detailed credit report.

After following my method and instructions on how to access a detailed credit report from the guide. Go to the negative listing sections to see all negative credit information from your credit report. Negative listings contain details of any financial missteps, such as defaults, late payments, or missed installments on loans. This section indicates the dates and amounts involved in the missed payments or unresolved loans. Determining and analyzing negative credit records from your report helps you determine which loans and obligations listed in the CRB database should be cleared first.

2. Conduct a Detailed Analysis of Negative Listings

A detailed analysis of negative listings involves closely examining all the negative entries—such as defaults, late payments, and unresolved debts—reported on your Credit Reference Bureau (CRB) report. This process is critical for understanding the specific reasons behind a negative credit score and taking corrective actions to clear your CRB status.

A negative listing is a record on your Credit Reference Bureau (CRB) report that indicates unfavorable credit behavior. This typically happens when a borrower fails to meet their financial obligations, such as defaulting on loans, making late payments, or having unpaid debts. Negative listings can harm your credit score and make it difficult to get approved for new loans or credit facilities. Hence, conducting a detailed analysis provides an overview of all loan defaults, late payments, and all obligations in your credit report.

How do you conduct a detailed analysis of Negative listings?

There are 6 types of negative listings that you should analyze and understand. Understanding each type of negative listing helps you prioritize in CRB clearance process. Below are the six types of negative listings and how to analyze each:

1. Late Payments

Late payments occur when a borrower fails to make a loan or credit card payment by the due date. Late payments are reported after a grace period ranging from 30 to 90 days, depending on the lender’s policies.

How to analyze Late Payments:

• Check Dates: Look for the dates of the missed payments. Determine how late the payment was (30 days, 60 days, etc.), as more severe delays will have a significant impact on your credit score.
• Frequency: Note how many late payments are reported. Late payments, especially when reported multiple times within a short period, can significantly damage a borrower’s credit score. Repeated late payments are often viewed more negatively by lenders than a single late payment spread over an extended period, leading to stricter lending policies and higher interest rates for affected borrowers.

2. Defaults

A default occurs when a borrower fails to meet the legal obligations (or conditions) of a loan. This often happens after several missed payments, leading lenders to declare the loan in default.

How to analyze loan Defaults in your negative listing:

• Understand the Terms: Review the original loan agreement to understand the conditions under which the loan is considered in default.
• Timeframe: Record the exact date of the default and how long it has remained on your credit report. Defaults older than 24 months typically have less impact compared to recent ones within the last 6 months.
• Communicate with lenders: Reach out to the lender to discuss the default status. Understanding any options for settling or disputing the default can provide a pathway to resolution.

3. Charge-offs

A charge-off is a declaration by a lender that an amount of debt is unlikely to be collected. This typically happens after a borrower has been delinquent on payments for a certain period (often 180 days).

How to analyze Charge-offs in Negative listing:

• Identify the Amount Charged Off: Review the amount that has been charged off and the original amount owed.
• Settlement Options: Research specific settlement options with the creditor. Creditors may agree to settle for a reduced amount, often between 40% and 60% of the total debt, depending on the creditor’s policies and the outstanding balance
• Impact on Credit: Recognize that charge-offs remain on your credit report for up to seven years, so developing a strategy for improving your score in the meantime is vital.

4. Bankruptcy

Bankruptcy is a legal process through which individuals or businesses can seek relief from some or all of their debts. Filing for bankruptcy severely impacts credit scores and remains on credit reports for seven to ten years, depending on the type.

How to Analyze:

• Type of Bankruptcy: Determine whether it was Chapter 7 (liquidation) or Chapter 13 (reorganization). Chapter 13 may have a less severe impact on credit scores than Chapter 7.
• Bankruptcy dates and impact: verify the filing and discharge dates of the bankruptcy. Bankruptcies older than 7 to 10 years generally have less impact on your credit score, as they are typically removed from credit reports after this period.
• Rebuilding Strategy: After bankruptcy, start rebuilding credit by opening a secured credit card or applying for a small loan. Make timely payments to demonstrate responsible borrowing behavior. Typically, secured credit cards require a deposit of $200 to $500, and small loans can range from $500 to $2,000 depending on the lender.

5. Collections

When a debt remains unpaid for 90 to 180 days, lenders typically transfer the account to a collection agency. Collection agencies are then tasked with recovering the outstanding loan balance on behalf of the lender, and these collection entries can appear on credit reports, potentially affecting the borrower’s credit score for up to seven years.

How to Analyze:

• Understand the Creditor: Identify which creditor reported the collection and the original debt amount. Sometimes collections are reported incorrectly, so verify the details.
• Negotiate: Contact the collection agency to negotiate a settlement. Make sure to request that they report the account as paid or remove it from your credit report once settled.
• Verify Authenticity: Ensure the collection account is valid. You can dispute inaccuracies with the credit bureau, which will investigate the claim.

6. Judgments

A judgment is a court’s decision regarding a debt obligation, usually stemming from lawsuits for unpaid debts. Judgments can significantly affect credit scores and are public records.

How to Analyze:

• Review the Details: Look at the amount, date of the judgment, and the court that issued it. Knowing the specifics will aid in resolving the judgment.
• Fulfillment: Check if the judgment has been satisfied (paid off). If it has been satisfied, ensure that this is updated on your credit report.
• Consult Legal Advice: Depending on the severity, consulting with a legal expert may provide insights into how to address the judgment effectively.

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3. Engage with Financial Institutions

Engaging with financial institutions involves establishing professional communication with lenders or financial entities that have reported credit information (positive or negative) to the CRB. This process is crucial when resolving disputes, addressing delinquent accounts, and seeking clarity or resolution on listings within the credit report.

After examining your credit report in detail and understanding all the negative listings and all the lenders or financial institutions involve in reporting you to negative listing you should start engaging with each of them. To engage with responsible financial institution start by contacting the customer service or credit department of the institution to address both delinquent and disputed accounts. Clearly outline the issues, whether it’s to negotiate a settlement for a defaulted loan or to rectify an incorrect listing. Provide relevant documents, such as proof of payment or any communication related to the dispute, to facilitate the resolution process. Maintaining a professional tone and ensuring all communication is documented (emails, receipts, or call records) will help in tracking progress and holding the institution accountable. This proactive approach not only speeds up the clearing process but also demonstrates responsibility and cooperation, potentially leading to favorable terms or faster resolutions.

How do you dispute errors on your credit report to clear your CRB status?

Disputing errors on your credit report is essential for clearing your CRB status and improving your credit score. If you find incorrect listings, such as settled loan defaults or false entries, act quickly. First, obtain a complete copy of your credit report from a licensed Credit Reference Bureau (CRB). After identifying errors, submit a formal dispute to the CRB, including documentation like payment receipts or lender correspondence. The CRB is required to investigate within 30 days, and if the error is confirmed, they will update your report and remove inaccurate listings. For a detailed, step-by-step guide on disputing errors, explore this comprehensive credit report dispute process.

4. Negotiate a Structured Repayment Plan

Negotiating a structured repayment plan refers to the process where a borrower collaborates with their lender to agree on a revised or manageable payment schedule to clear outstanding debts. This plan is designed to help borrowers resolve their debts without defaulting further while also benefiting the lender by ensuring eventual repayment. To negotiate a structured repayment plan and removal of negative listing the methods are shown below:

Propose a Structured Repayment Plan

A structured repayment plan is an agreement that allows you to pay off the outstanding amount in manageable installments over a set period.

• Offer a Realistic Payment Proposal: Based on your income and current financial situation, suggest a repayment plan that is realistic and manageable. For example, you could propose to repay the debt over 6 months, with an agreed-upon amount per month.
• Interest and Fees: Be prepared to negotiate interest rates or request a waiver of certain fees (e.g., late payment fees). Some financial institutions may be open to waiving these if they see your willingness to clear the debt.
• Request a Written Agreement: Ensure that the agreed repayment plan is put in writing. The document should outline the repayment schedule, the total amount, any waived fees, and the terms of the plan.

Request for Removal of Negative Listing

Once the repayment plan has been finalized, negotiate the removal of the negative listing from your CRB report.

• Conditional Removal: Ask if the financial institution is willing to remove the negative listing upon receiving a certain portion of the debt or once the full amount is cleared. Some institutions may agree to clear your record after you’ve made significant progress on the repayments.
• Proof of Removal: Ensure you receive written confirmation that the listing will be removed from the CRB once the debt is settled. You may also request a letter of clearance from the institution as further proof.

5. Request Official Loan Clearance Documentation

Once the debt is cleared, request the creditor to provide an official clearance certificate that confirms the clearance of all obligations. Requesting official clearance documentation from the creditor responsible for the negative listing is a critical step in the process of clearing negative listings from your credit report. This letter or certificate is critical for removing your name from negative CRB listings.

What is a loan clearance certificate or letter?

A loan clearance certificate or letter is a document that contains details of the cleared loan, including the loan amount, the date of full repayment, and the confirmation that no further obligations exist related to that loan. A loan clearance certificate certifies the settlement of obligations related to a specific loan and may be required by lenders before offering new credit. It also serves as proof to the borrower and lender that a particular loan has been fully repaid. It may be required when applying for new loans with the same or different lender, or for administrative purposes such as closing an account.

This ensures that your name is officially removed from the Credit Reference Bureau (CRB) lists, and you receive proof of your cleared status. Here’s a breakdown of the process:

What are the methods of requesting a loan clearance certificate from a financial institution?

There three methods for requesting loan clearance certificate from a creditor, the three methods include:

• Visit the financial institution’s branch in person.
• Call their customer service or credit department.
• Send an official email or letter to initiate the request.

Here is an example of a loan clearance letter that you can send to the financial institution for requesting loan clearance certification:

Free loan clearance letter sample prepared by the Loanappskenya team.

The second option for checking and ensuring that your credit information in the report is updated is asking the lender to issue a batch number so that you track your status with the Credit Reference Bureaus (CRB).

What is Batch Number?

A batch number in the context of CRB clearance refers to a unique identification code or reference number assigned to a set of transactions or records submitted to the Credit Reference Bureau (CRB) for processing. When an institution, such as a lender or a financial entity, sends a group of clearance requests, updates, or data (such as cleared loans or corrected listings), the batch number helps track that specific set of submissions. This number is used to confirm and trace the status of the records being updated in the CRB system.

For a borrower seeking CRB clearance, the batch number can be important because it provides a way to follow up on the processing of their clearance request. If a lender submits your loan clearance details to the CRB, you can ask for the batch number from the lender to monitor the progress of your status update with the bureau. It is especially useful when there are multiple requests or delays, as the batch number gives a point of reference for resolving any issues with the CRB.

Why is my status not updated after issuing the batch number to CRB?

The reason why your status is not updated after issuing the batch number to CRB is because the information in the batch number issued by the lender contains missing details or data. To ensure that this issue is resolved, you need to request another batch number from the lender. However, initially you should ask the CRB what the missing information was so that you can talk with the lender to correct the missing information.

What are the details to provide to the creditor to confirm that it is you?

When contacting the creditor, have the following information ready:

• Your full name as per their records
• Account number or batch number related to the loan or credit account
• Payment confirmation details (receipt, transaction number, payment date)
• Personal identification (ID or passport number)

What are details that should be included in the loan clearance certificate:

• A formal statement indicating the loan or debt has been fully paid or settled.
• Confirmation that the institution will notify the CRB of the status change.
• The financial institution’s stamp or letterhead for authenticity.

Notify the CRB of Clearance

After receiving official clearance from the financial institution, you must submit this documentation to the CRB. Some financial institutions will do this on your behalf, but it’s good practice to follow up and ensure the information has been updated.

Steps to Submit to CRB:

• Provide a copy of the clearance documentation to the CRB.
• Request confirmation from the CRB that your credit status has been updated.
• Keep a copy of all communication for your records.

What is the difference between a loan clearance certificate and a CRB clearance certificate?

Aspect	Loan Clearance Certificate	CRB Clearance Certificate
Issued by	Lending Institution	Credit Reference Bureau (CRB)
Covers	A specific loan	Entire credit history
Purpose	Proof of repayment for a specific loan	Proof of no negative listings in credit records
Required for	Closing or verifying the repayment of a loan	Applying for new loans or jobs
Legal Impact	Loan-specific documentation	Comprehensive credit status verification
Content	Loan amount, repayment date, confirmation of closure	Credit history, listing status, good standing
Validity	Indefinite for the specific loan	Time-sensitive (usually for a year)

6. Request a CRB Clearance Certificate

Once you have paid your loan and are issued a loan clearance certification by your creditor, the next step includes requesting a CRB clearance certificate from CRB by providing the loan clearance document. Therefore, you should check whether CRB has updated your status. Once you have confirmed your status, you can request an official CRB clearance certificate, which serves as proof that your name has been removed from negative listings.

A CRB Clearance Certificate, also known as a Certificate of Clearance, is an official document issued by a Credit Reference Bureau (CRB) that provides proof of an individual’s credit status. A CRB Clearance Certificate indicates that the defaulter has no outstanding negative listings or loan defaults and reflects their overall creditworthiness. The certificate is typically required when applying for loans, jobs, or financial services to demonstrate that a consumer has no negative credit listings and is in good financial standing with lenders and creditors. Its validity can be time-sensitive because the borrower’s credit history can change over time. A CRB clearance certificate is typically valid for a specific period (e.g., one year) before a new one must be obtained.

How to Request a CRB Clearance Certificate:

The instructions to request a CRB clearance certificate from three CRBs are shared below:

• Visit the CRB’s online platform (for licensed bureaus like TransUnion, Metropol, or CreditInfo) and request the certificate.
• You may need to pay a small fee for the clearance certificate.
• The certificate will usually be sent to you digitally or can be picked up in person.

How do you request a CRB clearance certificate from Metropol CRB?

There are two methods for requesting a CRB clearance certificate from Metropol CRB. The two methods include:

1. How to request Metropol crb clearance certificate through phone:

To request Metropol crb clearance using USSD, follow these procedures below:

• Dial *433# from phone app
• Register and pay Kes 50 if haven’t registered yet
• Select “CRB certificate.”
• Enter your account pin (or skip if you have forgotten pin)
• Confirm your account number (usually your ID number)
• Enter M-Pesa Pin and Send
• You should wait for a confirmation message from Metropol to confirm your payment and guidance on how to access your CRB clearance certificate. If no further response is done, please contact Metropol through the following contacts for further directions.
  Metropol Contact Information: (+254) 709 834 000

How to request a Metropol crb clearance certificate through the Crystobol app

To request Metropol crb clearance through Crystobol App, follow these procedures below:

Go to M-Pesa menu, select lipa na M-Pesa, Select Pay Bill and enter 186644 or 220388, Enter account number (ID number), Enter Amount (2200) and Enter a M-Pesa Pin and Send. Take note of M-Pesa transaction reference number and submit it on Crystobol app if required for confirmation.

• Download the Metropol Crystobol App from the Google Play Store or Appstore. To download Metropol Crystobol App, Go to Google Play Store or App Store and type Metropol Crystobol app on the search bar, then click Install.
• Open the Metropol Crystobol App and sign in. Follow the steps necessary to request your CRB clearance certificate.

How do you download a CRB certificate from Metropol?

To download the Metropol CRB clearance certificate, follow the provided link sent to you by Metropol or use the app to access it. However, you can request Metropol to send you the certificate through your email.

How do you request a CRB clearance certificate from Transunion CRB?

There are two methods for requesting a CRB clearance certificate from Transunion CRB. The two methods include use of the Nipashe app and through your email.

To request a Transunion CRB clearance certificate through email, follow these procedures below:

1. Register and pay a total of Kes 50 to TransUnion Pay bill number 212121 or through Equitel line pay bill 212120.
2. Pay Kes 2200 to Pay Bill Number 212121 or through Equitel Line Pay Bill 212120.
3. Send the M-Pesa transaction message to e-mail-cert@transunion.co.ke.
4. An updated certificate of clearance will be emailed to you.

To request a Transunion CRB clearance certificate through the Nipashe app, follow these procedures below:

• Download TransUnion Nipashe app from Google Play Store or App Store. To download TransUnion Nipashe app, Go to Google Play Store or App Store and type TransUnion Nipashe app on the search bar, then click Install.
• Open the TransUnion Nipashe App to provide personal information such as first name, second name, national ID, and phone number, and accept the terms and conditions.
• Click “Activate” to complete the registration process by paying Kes 50. Proceed by requesting your CRB clearance certificate.

How do you request a CRB clearance certificate from CreditInfo CRB?

To request CreditInfo CRB clearance certificate, follow these procedures below:

• Visit https://ke.creditinfo.com/clearance-certificate/
• Select either a personal clearance certificate or company clearance certificate.
• Complete the application process by entering the right details and submitting
• Pay Kes 2200, and your CRB clearance certificate will be sent to you through email.

To download your CRB clearance certificate, open your email to find the document and download it as a PDF.

What are the key elements of a CRB clearance certificate?

1. Personal Information: Includes the borrower’s full name, identification details (such as ID number), and sometimes the credit history review period.
2. Credit History Overview: summarizes the borrower’s credit activity, including loans, credit cards, and any form of credit they have taken from financial or lending institutions.
3. Status of Credit: Highlights whether there are any negative listings, such as loan defaults, arrears, or late payments. It can also show a positive credit history, indicating no delinquencies.
4. Clearance Confirmation: If there are no negative listings or the borrower has cleared any previously reported debts, the certificate confirms that the individual is in good standing.
5. Date of Issuance: The date the certificate is issued, indicating its validity at that point in time.
6. CRB Authority: It is officially issued by a licensed credit reference bureau.

Why is a CRB clearance certificate important?

1. Loan Applications: Lenders often require this certificate to ensure that the borrower is not listed negatively in the CRB and is eligible for further credit.
2. Job Applications: Some employers, particularly in financial institutions or sensitive positions, may request a CRB Clearance Certificate to assess the applicant’s financial responsibility.
3. Proof of Credit Status: It provides proof that the individual has cleared all outstanding debts, including negative listings, making it crucial for improving creditworthiness and financial standing.

7. Implement Regular Monitoring Practices

Regular monitoring practices involve establishing a routine of checking your credit report to stay informed about your credit status, detect potential errors, and ensure that your credit status is accurate. Regularly checking your CRB status is a proactive step toward maintaining a healthy credit profile. You can set up automatic alerts or subscribe to monitoring services offered by CRBs that notify you of changes in your credit status, such as new listings or updates to existing records. Additionally, most Credit Reference Bureaus provide the option to request a credit report at periodic intervals, such as monthly or quarterly. By reviewing your credit report consistently, you can quickly detect any discrepancies, identify potential fraud, and address negative listings before they affect your financial standing. Regular monitoring ensures that your credit history is accurate and up-to-date, enhancing your chances of securing favorable loan terms.

To set a regular monitoring schedule for credit report status checks, tools, systems, and monitoring services from certified Credit Reference Bureaus (CRB) providers should be used. The frequency of the monitoring schedule should be determined and set with the Credit Reference Bureaus (CRB) systems and tools. For instance, you can set up daily, weekly, monthly, and annual alerts. To ensure that your credit report status monitoring process is set up correctly, you can leverage monitoring systems and tools by ensuring that your subscription is correctly set up. To set regular monitoring scheduling for credit reports, ensure that you are subscribed to the monitoring services offered by certified CRB. For instance, to automate credit report status alerts based on monitoring schedules, use the following tools:

• Use Metropol Crystobol app, which you can download from both Google Play store or Apps store
• Use Transunion Nipashe app, which you can download from both Google Playstore or Apps store

How much do CRBs charge for monitoring credit report status?

Creditinfo Credit Reference Bureau Kenya Limited reports that it charges KES. 600 as an annual subscription for credit report status monitoring. The credit report status alert is sent on monthly basis if you are a customer with CreditInfo Crb providers. This monitoring fee applies to individual credit report status checks and corporate credit reports.

To ensure that your credit status is monitored on a regular schedule, first ensure you are registered and verified customer with CreditInfo. The registration process for each CRB provider is discussed under the registration section.

Transunion offers credit report monitoring services to both consumers and businesses. Transunion reports that for individual credit report monitoring, the following terms apply: You get free credit report monitoring alerts. However, Kes 300 is charged for any additional credit reports issued that year. Transunion reports that for corporate credit reports, Kes 1350 is charged.

Metropol is the cheapest credit report monitoring service provider according to its terms; it charges Kes 250 for consumer credit reports. For corporate credit report status check, Metropol charges Kes 650 as an annual fee, and you can request a status check by dialing *433#