These guys can decide whether you get a loan or not

In the US and most countries in the West, when you approach a bank for a loan the type of terms you might get is usually determined by not only banks but a credit bureau. Based on your credit score (from the credit bureau or agency) your interest may be a subprime borrower or a prime borrower. As a subprime borrower, your interest rates, tenor and other terms and conditions for the loans are usually stricter.  The credit agencies do this by simply obtaining and exchanging data across banks locally and internationally giving banks a reliable source of knowing which borrower is riskier (regular defaulter) and which is less risky. This helps banks limit avoid regular defaulters and also help allocate risk assets in an effective manner.These guys are also in Nigeria and have been in operation for some years now. The Central Banks via its Monetary and Credit Guidelines mandates all banks and other financial institutions to partner with the licensed private credit bureaux. They are also mandated to do the following;

“(a) Have data exchange agreement with a least two (2) licensed private 
credit bureaux and obtain credit report from, at least two (2) credit 
bureaux before granting any facility to their customers,

(b) Obtain quarterly credit report from, at least two (2) bureaux for all 
previous loans/facilities granted to assist in the determination of the 
borrowers current exposure to the financial system,


(c) Lending institutions shall provide accurate credit information on their 
customers and update the status of the credit regularly to reflect the 
true position of the credit at all times, and


(d) Lending institutions shall also ensure that only customers with 
performing or favorable credit reports are granted fresh or additional 
credit” 


So who are these guys that will be combing through our data?? They are;

? XDS Credit Bureaux Ltd 
? CRC Credit Bureaux Ltd 
? CR Services Credit Bureaux Ltd

These guys will be pouring through countless data from banks including loans and all forms of credit. If you are a regular defaulter with loans they will know and inform other banks in case you decide to jump ship. They will also know if you are a chronic borrower and if you are the type that can afford to get a loan or not. The Cash-less society will bring with it massive changes in the financial sector part of which will be Credit cards and all kinds of consumer credit products. We already have them here but now the reach will be contagious. On the back of that banks will need to have some form of third party reliable source for crating would be borrowers.

Next time you apply for a loan and get it, have it at the back of your mind that these guys will be collating data and analyzing your credit worthiness.