YOUR FINANCIAL HISTORY LAID BARE: Credit score information will be retroactive to April 2018

YOUR FINANCIAL HISTORY LAID BARE: Credit score information will be retroactive to April 2018
(FILE)

Utility bills, outstanding debt, payment defaults, legal proceedings and payment behavior will all factor into a person’s credit score

NASSAU, BAHAMAS — The data currently being compiled to determine an individual’s credit score in The Bahamas goes back to April 2018, the entity tasked with establishing this nation’s credit bureau revealed yesterday.

A credit bureau effectively acts as a central database that lenders can use to obtain a more complete, accurate picture of the risk and creditworthiness presented by a particular borrower. While data collected by this nation’s credit bureau will impact an individual’s creditworthiness and personal credit score, banks — depending on their risk tolerance — will still determine whether not to extend credit.

Officials involved with the CRIF Bahamas project noted yesterday that higher risk credit scores will not necessarily mean that an individual will be denied credit, though it would likely mean that such facilities would attract far higher interest rates.

Schell Stubbs, a consultant with CRIF Bahamas, while addressing a webinar regarding the credit bureau yesterday, noted borrowers will be placed in tranches from A to J with accompanying credit scores, with A representing very low-risk borrowers and J representing extremely high-risk borrowers.

“You will be risk-rated, get a score and fall into one of these tranches,” said Stubbs.

“Depending on the bank’s risk tolerance, they can determine who they give a credit facility to. Some banks may accommodate you despite the fact that you are medium or high risk, but you will just have to pay a higher interest rate.”

Stubbs noted that US transactions will not be included in the credit bureau database, which will only contain information on individuals with actual credit history. She noted that while the credit bureau will initially only include an individual’s credit history, including utility bills, information from all credit lenders will eventually be included.

Enrico Caruso, country manager at CRIF, noted that an individual’s outstanding debt, payment defaults, legal proceedings, credit history and payment behavior will all factor into a person’s credit score.

He said an individual will be entitled to one free credit score per year and further noted that data is still being compiled.