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The rapid growth of the credit market in Kuwait has increased the concern regarding debt default and the importance of proper credit evaluation. With a total population of over two million people, the current size of the personal credit market is over 6 billion dollars. This figure is expected to grow and does not include commercial facilities. Due to the above, the need for a credit bureau and collection agency in Kuwait was recognized and CRC was established. The Credit Rating Department aims to provide the client with credit information. This minimizes risk, increases their business volume, and reduces the decision making cycle. Towards Credit Rating, CRC provides the following services :
CSS is a scientific method of assessing credit risk. Statistical models and mathematical tables assign points to the factors indicative of repayment. These, in turn, are used to calculate scores. The credit scoring process is thus an objective risk assessment tool rather than a subjective one since it is only based on data and not human judgment. Credit scoring is designed to support the "accept / reject" decision which is made when new applications for credit are received. The score board serves as a "gate" through which credit grantors admit applicants: the credit grantors determine the acceptable levels of risk and set a cut-off score accordingly. Applicants scoring at or above cut-off are considered to have an acceptable level of risk and are approved. Applicants below cut-off are rejected for future review. By using the scorecards as a basis for adopting various cut off strategies, credit grantors can determine in advance the level of risk they are willing to take.
2. Credit Reports Service (CRS) ™ Through this service, CRC presents customers with accurate business information in order to determine financial responsibility, assets, and public record information of these businesses for lending or other business purposes. The reporting includes the following:
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