CRC Score, a digital method of determining the level of customers before granting them credit facilities, is now available in Nigeria for lenders and individuals, CRC Credit Bureau announced recently.
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 who 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 300-850, with 300 being the lowest score and 850 the highest.
Before now, one of the challenges in giving loan facilities to investors, especially to 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 him, 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, Popoola said upon the payment of the require four hundred naira (N400.00), the product can easily be accessible online through the CRC Credit Bureau website, https://www.
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,” Popoola concluded.