–Creditinfo says, highlights that over 40 institutions now utilising agency’s services

SINCE its establishment, locally, in 2013, Creditinfo, Guyana’s only credit bureau, has contributed to a paradigm shift in the financial sector, as more institutions are now utilising credit reports for lending and financial decisions.

According to a press release from the company, Creditinfo, which recently celebrated its ninth anniversary, has evolved over the years under the stewardship of Chief Executive Officer (CEO), Judy Semple-Joseph.
At its core, Creditinfo Guyana provides intelligent information, software and analytic solutions to facilitate access to finance.

“…while consumers in first-world markets are familiar with the workings of credit reports and its importance, Guyanese consumers are now waking up to the idea, even as local institutions have long been using the bureau’s credit reports to inform their judgment on a range of financial and lending decisions,” the company said.

With the company being accredited by the Bank of Guyana as a “licensed Credit Bureau,” it is allowed to facilitate partnerships with companies as specified by the Credit Reporting Amendment Act, ahead of lenders being able to access credit reports as well as share data.

To date, more than 300,000 credit reports have been issued since the bureau’s establishment in Guyana nine years ago, as this is its most utilised service from the company’s database of some 40 subscribers. Those include bank and non-bank financial institutions, micro-financial institutions, hire purchase, student loan, credit unions, trade creditors, utility companies and other lenders.

Over the years, credit report usage has generally been increasing as lenders recognise the extent to which their credit risk is reduced when the use of a report is factored in.

HOW THE SYSTEM WORKS
It should be noted that Creditinfo neither makes nor influences credit decisions. The decision of whether or not to grant credit is dependent on the lending intuition’s credit policy and the assessment done based on the individual’s credit history.

However, an assessment of a borrower’s credit report is a prerequisite for the granting of any credit facility, as is required under the Credit Reporting Amendment Act, which lenders are required to implement. In order for an individual’s credit report to be accessed, the law requires that written permission must be given.

This, in a nutshell, means that in order for a company or individual to be granted a loan or an item on hire-purchase, businesses or lenders typically request your credit report from the bureau to determine your eligibility of attaining same. However, this is not before acquiring written approval from you, the consumer, to access the credit report.

“Lenders utilise the credit report in their lending decision to determine how the borrower has serviced previous loans; whether the borrower has had any missed payments or arrears, how many outstanding credit facilities among other things which help to determine an individual’s credit profile. In excess of 450,000 new credit facilities [including utility data] have been recorded in our database at the end of Q1 2022,” Semple-Joseph said.

CHECK CREDIT REPORT
Since credit reports now account for a significant amount of credit decisions by institutions in Guyana, the company has encouraged consumers to know their credit history by requesting their credit report online at www.creditinfo.gy.

“We also advise persons to ensure that their bills are paid on time, including utilities such as water and telephone bills and to ensure that any arrears on the account are promptly cleared, since bad payment patterns can reflect negatively on their credit report,” the company said.

“Over the past three years, we have seen an average of 500 per cent growth in consumers’ requests for credit reports. However, there is the need for more persons to access their credit reports as we continue to receive many queries after persons approach a financial institution for credit and then realise that erroneous information on their credit reports needs to be corrected,” Semple-Joseph related.

The CEO also revealed that many persons lose the opportunity to access financing because they might not be familiar with the information on their credit report which could have been corrected prior to them approaching the lender.

This is why, self-request credit reports by consumers are encouraged, particularly prior to approaching a financial institution or company. Creditinfo, in keeping with the law of Guyana, allows consumers their own report free of cost, once annually upon request. Thereafter, a small fee is required. This process is facilitated mainly online.

Generally, a good credit score depends on the lending policy of an institution, whereas the global best practice refers to a number in excess of 650. The Creditinfo Credit score ranges from 250 to 900.
In the coming years, the company sees itself expanding towards further supporting Guyana’s economic advancement, by providing intelligent information, software and analytic solutions that empower clients to mitigate financial risk.