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How to Improve Your Credit Score in Kenya

Follow these 10 proven strategies to increase your credit score by 100+ points in 6-12 months. Start qualifying for better loans with lower interest rates.

📈
Average Score Increase: 120 Points
When following all strategies for 6 months
1

Pay All Bills On Time, Every Time

Impact: +100 points in 6 months

Payment history is 35% of your score - the single most important factor. Even one late payment can drop your score by 50-100 points.

Action Steps:

  • Set up automatic payments for all loans - M-Shwari, KCB M-Pesa, bank loans, credit cards
  • Use M-Pesa Lipa na M-Pesa to schedule automatic utility bill payments (KPLC, Water)
  • Set calendar reminders 3 days before each due date as backup
  • If you can't pay in full, pay the minimum to avoid late marks (then pay full later)

Pro Tip: Pay 2-3 days BEFORE the due date, not on the due date. Bank processing delays can mark you late even if you paid on time.

2

Keep Credit Card Balances Below 30%

Impact: +50-80 points

Credit utilization is 30% of your score. Using too much of your available credit signals financial stress.

❌ Bad Example

Credit limit: KES 100,000

Current balance: KES 85,000

Utilization: 85% 😰

✓ Good Example

Credit limit: KES 100,000

Current balance: KES 25,000

Utilization: 25% 😊

Action Steps:

  • Pay down balances to below 30% as quickly as possible
  • Make payments twice a month instead of once to keep reported balance low
  • Request a credit limit increase (but don't spend more!) to reduce utilization ratio
  • Spread purchases across multiple cards if you have them, instead of maxing out one
3

Clear Any Existing CRB Listings

Impact: +150-200 points

An active CRB listing (defaulted loan) can drop your score to 300-400 range. Clearing it is the fastest way to improve dramatically.

Step-by-Step CRB Clearance Process:

  1. Step 1:Check all 3 CRBs (Metropol *433#, TransUnion, Creditinfo) to identify all listings
  2. Step 2:Contact each lender - call their customer service and ask for settlement amount
  3. Step 3:Negotiate - many lenders accept 60-90% of total debt as full settlement
  4. Step 4:Get written agreement - confirm in writing they'll update CRB upon payment
  5. Step 5:Pay and get clearance letter - insist on official clearance documentation
  6. Step 6:Follow up after 60 days - verify the listing shows as "settled" on CRB

Important: Cleared listings remain on your report for 7 years but show as "settled" instead of "defaulted". This is much better and allows you to qualify for new credit.

4

Don't Close Old Credit Cards

Impact: Prevents 30-50 point drop

Length of credit history is 15% of your score. Closing old accounts shortens your average account age.

Common Mistake:

"I paid off my credit card, so I'll close it to avoid temptation." ❌ DON'T DO THIS!

Closing the card reduces your total available credit (increasing utilization on other cards) and removes a positive payment history account.

Better Strategy:

Keep the card open but use it minimally. Use it once every 3-6 months for a small purchase (like KES 500 airtime), then pay it off immediately.

  • • Keeps the account active (won't be closed by bank)
  • • Maintains your credit history length
  • • Keeps your total available credit high (low utilization ratio)
  • • Adds positive payment history every month
5

Space Out New Credit Applications

Impact: Prevents 10-30 point drop per application

Each credit application creates a "hard inquiry" that stays on your report for 2 years and can drop your score by 5-10 points. Multiple applications in short time = red flag to lenders.

❌ Bad Pattern

  • • Jan: Apply for KCB loan
  • • Feb: Apply for Equity loan
  • • Feb: Apply for Co-op loan
  • • Mar: Apply for ABSA credit card

Result: Score drops 40+ points, looks desperate

✓ Good Pattern

  • • Jan: Apply for KCB loan
  • • Aug: Apply for Equity card
  • • Next Jan: Apply for car loan
  • • (Space by 6+ months)

Result: Minimal score impact, shows financial stability

Pro Tips:

  • If shopping for rates, do it within 14-45 days - multiple inquiries for the same purpose are counted as one
  • Digital lenders (Tala, Branch) often don't do hard inquiries - use these for small, urgent needs
  • Pre-qualification checks (like on bank websites) use soft inquiries that don't hurt your score
6

Diversify Credit Types

Having a mix of credit types (credit card + personal loan + M-Pesa loan) shows you can handle different credit responsibly.

  • • Start with a credit card (easiest to get)
  • • Add M-Shwari/KCB M-Pesa (small amounts, pay on time)
  • • Then apply for larger loans when needed
7

Dispute Errors

25% of credit reports contain errors. Correcting them can boost your score by 50+ points instantly.

  • • Check all 3 CRBs for inaccurate info
  • • File dispute with CRB and lender
  • • They must investigate within 21 days
  • • Escalate to Central Bank if needed
8

Become an Authorized User

If someone with excellent credit adds you as authorized user on their credit card, their good history boosts your score.

  • • Ask parent/spouse with good credit
  • • You don't need to use the card
  • • Their payment history appears on your report
  • • Can boost score by 30-50 points
9

Pay Off Collections

If your debt was sold to a collection agency, negotiate and pay it off. Shows you're resolving past issues.

  • • Negotiate to pay 50-70% as settlement
  • • Get "pay for delete" agreement in writing
  • • Pay and demand CRB update
  • • Score improves within 60 days
10

Monitor Monthly

Regular monitoring helps you catch errors early and track improvement. Set calendar reminder to check quarterly.

  • • Check all 3 CRBs every 3 months
  • • First check each year is FREE
  • • Additional checks: KES 50-100
  • • Track your progress over time

Realistic Timeline: What to Expect

0-30 Days

Setup Phase

Check all 3 CRBs, identify issues, set up automatic payments, start paying bills on time. May see 10-20 point increase from correcting errors.

1-3 Months

Early Gains

Consistent on-time payments and lowered credit utilization start showing. Expect 30-50 point increase. This is when you'll notice lenders treating you better.

3-6 Months

Momentum Building

Cleared CRB listings now showing as settled. Credit history lengthening. Expect 70-100 point increase from baseline. You may now qualify for loans you were rejected for before.

6-12 Months

Peak Improvement

With consistent behavior, expect 100-150+ point increase. You're now in "Good" or "Excellent" range. Qualify for best rates and highest loan amounts.

Remember: Patience and Consistency Win

✓ DO:

  • • Pay every bill on time (set up autopay)
  • • Keep credit card balances under 30%
  • • Check CRB every 3 months
  • • Dispute errors immediately
  • • Be patient - improvement takes months

✗ DON'T:

  • • Close old credit cards
  • • Apply for multiple loans at once
  • • Max out credit cards
  • • Ignore small debts (KES 500 matters!)
  • • Expect overnight miracles