Don't let these common misconceptions sabotage your credit score. Learn the truth about CRB and credit scoring in Kenya.
Checking your own credit score is a "soft inquiry" and has ZERO effect on your score. You can check it as many times as you want without harm.
What DOES hurt: When lenders check your score during a loan application - that's a "hard inquiry" which can drop your score by 5-10 points. But you checking? Totally safe. In fact, regular monitoring (every 3 months) is RECOMMENDED.
You DON'T need to pay interest to build credit. Paying your credit card balance in full every month is actually BETTER for your score.
Using your card and paying it off in full shows responsible usage without costing you interest. Carrying a balance just wastes money (18-24% annual interest!) while providing NO score benefit.
Closing old cards usually HURTS your score by 30-50 points! It reduces your available credit (increasing utilization ratio) and shortens your credit history length.
Better strategy: Keep old cards open but use them minimally. Use once every 3-6 months for a small purchase, then pay it off immediately. This maintains your history without risk.
Your salary has ZERO direct impact on your credit score. A teacher earning KES 50,000 who pays bills on time can have a higher score than a CEO earning KES 500,000 who misses payments.
Credit scores measure how you manage borrowed money, not how much you earn. However, lenders DO consider income separately when deciding loan amounts and approval.
Negative records stay on your CRB report for 7 YEARS from the date of listing, even after you pay. However, paying changes the status from "defaulted" to "settled" - which is MUCH better.
A "settled" status allows you to qualify for new credit, while "defaulted" results in instant rejection. The record stays, but its impact lessens over time, especially with new positive behavior.
You might not need credit NOW, but life happens: medical emergencies, business opportunities, buying land/home, car financing. Building credit takes YEARS - you can't build it when you urgently need it.
Plus, some employers (especially banks and financial institutions) check CRB when hiring. Landlords may check it too. Having no credit history ("thin file") can be as bad as having bad credit.
M-Shwari, KCB M-Pesa, Fuliza ALL report to CRB. Even a KES 50 default can tank your score. Digital lenders like Tala and Branch also report defaults (though they don't check CRB when approving).
Key point: Just because a loan is easy to get doesn't mean it's risk-free. Treat every borrowed shilling - even KES 100 from M-Shwari - like it matters. Because it DOES affect your score.
Credit scores remain INDIVIDUAL even after marriage. Your spouse's good or bad credit doesn't automatically become yours.
However, if you take out JOINT loans together (like a mortgage), both of your credit scores are affected by how that loan is managed. Otherwise, you remain financially independent on CRB.
If you never borrow, you have NO credit score or a "thin file." Banks see this as risky because there's no track record of how you handle credit.
Solution: Get a small credit card, use it for KES 5,000 monthly purchases, pay it off in full. This builds credit without going into debt. You're using credit as a tool, not borrowing money you can't afford.
There are NO magic bullets. Anyone promising to "delete" your CRB listing instantly is a SCAM. Building good credit takes 6-12 months of consistent good behavior.
Beware of scams: "CRB clearing agents" charging KES 5,000-10,000 to magically fix your credit. They can't. Only the lender who reported you can update CRB records. Save your money and follow legitimate strategies.
✓ TRUTH:
Different lenders report to different bureaus. Always check ALL THREE: Metropol, TransUnion, and Creditinfo.
✓ TRUTH:
You can recover! Clear your debts, practice good credit habits for 6-12 months, and your score will improve significantly. Past mistakes don't define you forever.
✓ TRUTH:
Minimum payments avoid late marks but keep your utilization high and cost you massive interest. Always pay more than the minimum - ideally full balance.
✓ PARTIAL TRUTH:
Multiple inquiries within 14-45 days for the SAME loan type count as one inquiry. But applying for different products (loan + card + mortgage) all count separately.
✓ TRUTH:
Closed accounts with negative history stay on your report for 7 years. You can't "delete" history by closing accounts. Focus on building new positive history instead.
Don't let myths hold you back. Take control of your credit score with facts and proven strategies.