Wednesday 3 June, 2020

Credit reporting climbs locally

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iStock image

The number of credit reports issued by Jamaica’s three licensed credit bureaus increased by 25 per cent in 2019 over the comparative year. 

A recently released Bank of Jamaica (BOJ) report on the industry shows the number of credit reports issued by credit bureaus totalled 582,822 in 2019, up from 466,531 in the previous year.

Lenders use credit reports to determine a loan applicant’s creditworthiness.

What’s more, the number of free credit reports issued for the year grew by 18 per cent up from 7,316 in 2018 to 8,636 in the review period.

A consumer is entitled to receive a free credit report from a credit bureau in each calendar year upon submission of a written request.

Eight new credit information providers (CIPs) entered the system to exchange customers' credit information, bringing the number of signed CIP contracts with credit bureaus to 103 in 2018 up from 95 in 2018.

Meanwhile, four previously signed CIPs commenced the submission of their customers’ data to credit bureaus during the year, taking the number of CIPs submitting their customer’s credit data to credit bureaus to 55 last year up from 51 in 2018.

There are now 23 categories of goods and services used by consumers represented in the reports.

The BOJ said the increase in data subjects improved population coverage.

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