Credit Reference Bureau A Worthwhile Investment

 

Whether you are looking for a job or you are the one recruiting, ensuring that you have been cleared by CRB is one of the greatest investments you could possibly make. Wondering why? Keep reading and you will get your answer.

Simply put a Credit Reference Bureau (CRB) is a company that collects credit information about borrowers from a variety of sources and provides it to lenders for various purposes.

Credit can be gotten in the form of credit cards and loans. Whatever the reason for needing the credit, the golden rule applies that it must be paid back with the agreed upon terms and conditions.

One of the biggest challenges most people have is in paying back that credit within the agreed upon terms and conditions. If you fail to pay the amount you owe within the agreed period, you get labeled as a defaulter.

All lenders are obligated to report defaulters to the Credit Reference Bureau in Kenya. After a defaulter is reported they get blacklisted by the Credit Reference Bureau. This means that the defaulter will be banned from accessing any form of credit from a formal source, for a period of 5 years unless they clear their outstanding balance beforehand. To avoid such a situation, it is imperative you check your credit status regularly.

 

Now I’m pretty sure you are wondering what all of this has to do with recruitment?

Okay, as well as giving lenders confidence, the impact of credit reports can reach to the world of employment.

There are two instances when an agency might perform a credit check:

1. To vet candidates.

2. To vet potential clients.

Why exactly?

Simply, protection. Whether it’s making sure that a candidate is financially healthy or ensuring that your recruitment agency gets paid, credit checks give agencies (and employers) peace of mind.

That said, would a recruitment agency turn away someone with a bad CRB…no but it will be a cause of concern for both the recruitment agency and the client recruiting. Avoid the risk and just get one done, trust me it will give you the upper hand.