Independent financial information provider Credit Bureau (Cambodia) Co Ltd (CBC) on January 6 said it has launched Credit Report Plus, a new and improved financial health check service feature available exclusively on CBC Mobile app that aims to help borrowers stay on top of their financial health and make better-informed decisions.
Credit Report Plus combines CBC’s Consumer Credit Report with its K-Score service, providing borrowers with a complete picture of their financial health, the company said in a statement.
“This is offered at a more affordable rate than it costs to buy the Personal Credit Report and K-Score via subscription separately making comprehensive financial health check more cost efficient for consumers across the country.
“Those who have been requesting single credit report from CBC can now take advantage of the benefits [1 Credit Report + 1 K-Score] of Credit Report Plus for a small additional fee.
“By improving their K-Score, consumers can likely increase their borrowing limits depending on the lending policies of financial institutions. The score boils down a customer’s creditworthiness into a single number, making it easy for borrowers to know where they stand,” CBC said.
Speaking to The Post in 2019, CBC CEO Oeur Sothearoath explained the K-Score, or Khmer Score, as a measure of “applicants’ potential credit risk at the point of application and predicts the likelihood of payment default in the next 12 months”.
“It was designed to provide lenders with a bureau-based risk profile to assess new credit applicants and make more informed and accurate credit assessment decisions. It enables credit managers to quickly assess the creditworthiness of applicants that allows the decision to be consistent; therefore, customers can access to finance faster,” he added.
And in the January 6 statement, Sothearoath said that with the launch of Credit Report Plus, borrowers would gain a better picture of their financial health and be able to work to improve their creditworthiness, maintain their K-Score, and report any inaccuracies in their credit report.
“We have launched Credit Report Plus to better serve the needs and provide flexible option to consumers after one year of launching our mobile app. This new feature aims to improve financial literacy and encourage responsible financial behaviour in Cambodia,” he said.
According to the latest data in the third-quarter Consumer Credit Index Report published by CBC, consumer credit applications jumped 38 per cent compared to the second quarter.
Data showed a 5.84 per cent increase in loan balances and six per cent rise in loans 30 days past due, the firm said, stressing that this shows the importance of creating a reliable system that quickly assesses credit risk.
“CBC is currently the only credit reporting institution in Cambodia offering credit reports and K-Score,” it said.