"The Implementation of Credit Scores in The Bahamas"
Abstract
A credit score is usually a three-digit
numerical expression based on a level analysis of a person's credit files and represents a person's creditworthiness. Lenders require credit scores and reports to determine the probability of loan repayments. The discussion concerning Bahamians having credit scores was gently disseminated during the initial COVID-19 outbreak in 2020. Kenrick Brathwaite, chairman of the Clearing Banks Association, stated that 20% to 30% of borrowers who borrow today do not disclose full information to the bank. The first credit report was expected to launch in early 2021, but CRIF Information Services Bahamas Ltd, the new Bahamas credit bureau, is still working on this development. Credit scores can push Bahamians to be more cautious and conservative with their money. This research paper will examine how credit scoring and the credit reporting system affect The Bahamas' economy and financial system. The government and financial institutions, such as the Central Bank of The Bahamas, can and are performing measures to ensure that credit reports and scores are effective. The conversation will cover credit score models, as well as the importance of credit scores and financial literacy in The Bahamas.
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