CRC’S credit score to quicken risk profile assessment for lenders

With the introduction of bank verification number, credit score bureaus are springing up in Nigeria to help lenders quickly assess how likely it is for a given individual to repay a loan, before making the offer.

One of the companies leading this charge is CRC Credit Bureau. The CRC Score is a digital method of determining the creditworthiness of customers before granting them credit facilities.

Credit Scoring is a method of allocating scores to customers, to determine their level of risk in extending them loans or credit facilities.

Credit Scores help lenders make quick and informed credit decisions on whom to extend credit facilities or loans to.

Tunde Popoola, MD/ CEO, CRC Credit Bureau, said CRC Score was developed by Fair Isaac Corporation (FICO), an American company with over 50 years of experience in data and analytics.

Powered by FICO, CRC Score analyses a statistical number and then defines how risky it is for lenders to do business with an individual.

According to Popoola, CRC is generated using data from the individual’s credit history detailed in their credit report. The CRC Score is a three-digit number that indicates if clients’ status is; excellent, good, fair or poor. The score ranges from 300850, with 300 being the lowest score and 850 the highest.

Before now, one of the challenges in giving loan facilities to investors, especially to micro, small and medium enterprises (MSMES), was the inability of creditors to have informed knowledge about the financial history of their would-be debtors.

But now, as a lender, the CRC Score can be used to profile and make quick lending decisions on new and existing credit customers to know their level of risk prior to approving their loan or post-paid product applications.

“As an individual, the CRC Score shows the level of risk associated with doing business with you or the quality of your credit status,” Popoola said.

This, according Popoola, meant that CRC Score can encourage or discourage credit providers at the point of making credit decisions on applicant’s application.

Making CRC Score available for everyone, he said upon payment of the required N400.00, the product can easily be accessible online through the CRC Credit Bureau website, https:// www.crccreditbureau.com/ product/crc-score-individual.

He advised everyone seeking loan facilities to first run through their credibility check before approaching any financial house for loans.

“Knowing your CRC Score makes you better prepared before applying for a loan and is the first step in taking control of your financial reputation,” he said.