Sharp Daily
No Result
View All Result
Friday, July 4, 2025
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team
Sharp Daily
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team
No Result
View All Result
Sharp Daily
No Result
View All Result
Home Investments

Mastering credit management: Tips for strengthening your credit score in Kenya

Fridah Karei by Fridah Karei
January 2, 2025
in Investments
Reading Time: 2 mins read

Building a strong credit score in Kenya is essential for financial stability and accessing credit under favourable terms. A credit score is a numerical representation of a person’s creditworthiness, evaluated by credit reference bureaus such as TransUnion, Metropol, and Creditinfo Kenya, under the oversight of the Central Bank of Kenya (CBK). Maintaining a strong score requires consistent and responsible credit management practices.

One of the most critical factors in building a strong credit score is payment history. According to guidelines from the CBK, timely repayment of loans and credit obligations significantly influences credit scores. Late payments or defaults negatively impact your score, signalling unreliability to lenders. To ensure timely payments, consider setting up automatic payments or reminders for due dates.

Credit utilization is another vital factor. This refers to the ratio of credit used compared to the total credit limit available. Maintaining a low utilization ratio, ideally below 30.0%, demonstrates responsible credit management. For example, if you have a credit limit of KES100,000.0, keeping outstanding credit below KES 30,000.0 positively impacts your credit score. Regular monitoring of credit card balances can help in managing this ratio effectively.

The length of your credit history also contributes to your credit score. A longer credit history with consistent repayment records reflects reliability. Avoid closing old credit accounts, as they provide valuable information about your financial behaviour over time. Having a diverse mix of credit accounts, such as secured loans (e.g., mortgages) and unsecured credit (e.g., credit cards), can also strengthen your score. However, it is essential to manage all accounts responsibly. Frequent applications for new credit, however, can negatively affect your score, as each application results in a “hard inquiry.” To minimize the impact, apply for credit only when necessary.

RELATEDPOSTS

No Content Available

Regularly reviewing your credit report is another essential practice. Disputing inaccuracies or errors with credit bureaus ensures that your report reflects accurate information. Additionally, financial institutions offer credit-builder loans designed to help individuals establish or rebuild their credit history.

Previous Post

The dual effect of tariffs: Challenges and opportunities for investors

Next Post

Should you leverage SACCO loans for investment? Balancing costs and returns in Kenya

Fridah Karei

Fridah Karei

Related Posts

Analysis

Lessons from the Kuramo-TransCentury fallout

July 3, 2025
Analysis

Kenya’s CIS market: Q1′ 2025 shows a surge, setting the stage for future expansion.

June 26, 2025
Investments

Investor shift to long term bonds drives oversubscription in CBK’s reopened auction

June 19, 2025
Analysis

Your First Investment should be an emergency fund with Cytonn Money Market Fund

June 16, 2025
Investments

Contrarian investing in Kenya.

June 13, 2025
Investments

Policies shaping Kenya-Tanzania energy collaboration

June 10, 2025

LATEST STORIES

Del Monte foods files for bankruptcy in USA

July 3, 2025

Lessons from the Kuramo-TransCentury fallout

July 3, 2025

Private vs Public Pension Funds in Kenya

June 30, 2025

The mechanics of currency manipulation

June 27, 2025

Understanding how to access your pension savings in Kenya.

June 27, 2025

What happened to president Ruto’s economic dream?

June 27, 2025

Opinion: Populism feeds votes, not growth

June 27, 2025

Competitive advantages of small businesses

June 26, 2025
  • About Us
  • Meet The Team
  • Careers
  • Privacy Policy
  • Terms and Conditions
Email us: editor@thesharpdaily.com

Sharp Daily © 2024

No Result
View All Result
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team

Sharp Daily © 2024