Consumer Credit Report

Consumer Credit Report is a record of individual borrower credit payment history compiled from bank, microfinance and major financial institutions.

Financial institutions who are the member of CBC will have directly access to individual borrower credit report via CBC’s interface. However, consent from borrower need to have prior to access to their own credit report.

What information display in credit report?

• Demographic Information: Generic information of your identity such as your name, gender, marital status, date of birth, place of birth, and nationality.
• Summary: Summary of your enquiries and accounts hold, aggregate credit limits and liabilities of both primary as well as guaranteed accounts.
• Previous Enquiries: Shows a list of various lenders that have searched on your information
• Account Detail: Display of all the detail of credit accounts both active and close you have with our members.
• Employment Detail: Display your occupation type such as working place, position, length of service and salary.

Benefit of the Consumer Credit Report

• Improved risk assessment:

The starting point for many of the asserted benefits of more comprehensive credit reporting derive from the claim that it would improve the accuracy of credit risk assessment. The benefits said to flow from improved credit assessment include lower rates of over-indebtedness and default, greater competition in the credit market and less expensive credit. For example, it is said that the introduction of comprehensive credit reporting would increase the ability of credit providers to distinguish better between good and bad borrowers and in turn reduce the rate of default and increase the volume of credit that can be provided to good borrowers.

• Promoting competition and efficiency:

Credit reporting is also said to promote competition in credit markets. Among other things, more competition may mean that credit is more readily available at lower cost as it reduce the transaction costs involved in assessing credit applications. It promotes competition in credit markets by reducing information barriers for small or new credit providers.

• Responsible lending:

Comprehensive credit reporting also focused on its possible role in reducing default rates and encouraging responsible lending practices. Responsible lending can be defined in different ways and is manifested in different institutional policies and practices. The basic obligations of responsible lending include that credit providers should lend only what their customers can afford to repay, help to prevent over indebtedness, and market their products and services responsibly. Credit bureau enable lender to have a better understanding of a credit applicant’s existing financial obligations rather than relying on the borrower to reveal their existing commitments, which applicants often fail to disclose fully.