A Credit Reference Bureau (CRB) is a company licensed by the Central Bank of Kenya (CBK) to collect, store, and share credit information about your credit history. This credit information shared by financial institutions to the CRB’s plays an important role in promoting responsible lending and helping you understand and manage your credit profile and make informed financial decisions..

Tala is licensed as a non-deposit-taking credit provider by CBK. As a regulated financial institution, we are required by law to share your credit information with licensed CRBs. This is in accordance with regulations such as the Central Bank of Kenya Amendment Act (2021),CBK DCP Regulations (2022) or CRB Regulations 2020 as revised or amended which promotes responsible lending and transparency in the credit market. CRB reporting applies to all Tala loans. Timely repayment ensures you build and maintain a good credit history.

Tala reports to the CRB to:

• Promote responsible borrowing and lending.
• Help build a positive credit history for customers who repay on time.
• Provide transparent reporting and ensure fairness in assessing creditworthiness.
• Comply with legal and regulatory requirements.

CRB reporting can have both positive and negative effects on your creditworthiness:

• Positive Effects: When you repay your Tala loans on time, we report this positive information to the CRB. This demonstrates responsible financial behaviour and can lead to several benefits:
  • Improved Credit Score: A strong repayment history helps improve your credit score, making you eligible for larger loans and better terms in the future.
  • Easier Access to Credit: A positive credit history increases your chances of getting approved for loans and other financial products from various lenders.
  • Enhanced Financial Reputation: A good credit score builds your financial reputation and can be beneficial in various situations, such as applying for a job.

• Negative Effects: If you fail to repay your Tala loan on time, we are legally required to  report this to the CRB. This can have the following consequences:
  • Negative Impact on Credit Score: Late payments or defaults can significantly lower your credit score, making it harder to borrow money in the future.
  • Limited Access to Credit: Lenders may be hesitant to approve your loan applications or may offer less favorable terms due to your negative credit history.
  • Difficulty in Obtaining Other Services: A poor credit score can affect your ability to access other essential services, such as securing certain jobs.
  • Long-term Consequences: Negative information can stay on your credit report for several years, impacting your financial opportunities for an extended period.

It is important to remember that your credit report is not permanent and you can take steps to improve it over time.

Tala shares the following details with the CRB:

• Your name and identification details.
• Loan application and disbursement data.
• Repayment history (whether loans are repaid on time, late, or not at all).

A credit score is a numerical representation of your creditworthiness based on your borrowing and repayment history. Credit scores are calculated using different models by CRBs and factors that can affect your score include your payment history, outstanding debt, length of credit history, types of credit used and recent credit applications.

It is important because:

• A higher score increases your chances of accessing loans with better terms.
• A lower score may reduce your access to credit or result in higher interest rates.

Remember that your credit report it not permanent!!! You can take steps to improve your credit score over time, such as consistently making payments on time, addressing outstanding debts and demonstrating responsible financial behaviour.

You can request your credit report from licensed CRBs. In Kenya you are entitled to one free report per year. Tala can also guide you on how to contact a CRB to access your report.

If you notice an error in your CRB report:

• Contact the CRB directly and file a dispute.
• Provide evidence of the error (e.g., proof of payment).
• Tala can assist you by confirming loan repayment details if needed.

To avoid negative CRB listings:

• Borrow only what you can afford to repay.
• Make loan payments on time.
• Communicate with Tala if you’re facing financial difficulties, as they may offer repayment options.

Yes, you can be removed from the CRB blacklist by:

• Fully repaying the overdue loan amount:
  To pay your loan, dial *846# or go to your Mpesa Paybill: Business number- 851900 Account number – Enter your Tala registered phone number as the account number.
• Requesting an updated credit report from the CRB to confirm that the negative listing has been removed. This update process may take some time, so it is advisable to follow up with the CRB to ensure your records are updated and accurate.

A positive credit history with Tala can:

• Qualify you for higher loan amounts and better terms.
• Build your overall credit score, enabling you to borrow from other financial institutions.
• Help you achieve long-term financial goals.

If you don’t repay your Tala loan:

• Tala will report the default to the CRB after giving you relevant notice.
• This will negatively impact your credit score, making it harder to borrow from Tala or other lenders.
• Default charges and collection efforts will apply.

Yes, Tala can help you rebuild your credit score by:

• Encouraging you to repay outstanding loans.
• Providing smaller loans to help you establish a positive repayment history.

Tala is committed to protecting your personal information and complies with all applicable data privacy laws, including the Data Protection Act. We use security measures to safeguard your data and only share necessary information with authorised parties.

For more information, you can:

• Contact Tala’s customer service through here.
• Visit Tala’s website or app for additional FAQs and support.
• Reach out directly to a licensed CRB in your region.*