In many parts of the world,
especially in countries like the United States and the UK, your credit score
is everything. It determines whether you can access loans, rent an apartment,
buy a car, or even get certain jobs. But what about Nigeria? Does the credit
score system exist here? And if so, how can you build one?
Let’s break it down—honestly,
clearly, and practically.
First of All: Does Nigeria Have a Credit Score System?
Yes, Nigeria does have a credit score
system, though it's still developing and not as deeply integrated into daily
life as it is in more advanced economies.
The Nigerian credit reporting system
is managed by licensed credit bureaus, the most prominent being:
- CreditRegistry
- CRC Credit Bureau
- FirstCentral Credit Bureau
These institutions collect and
maintain credit reports and scores for individuals and businesses based on
their financial behaviour—just like in the U.S.
So yes, your credit history is being
tracked, especially if you’ve used financial services like:
- Loans from banks or fintech platforms
- Postpaid services (e.g., utilities or devices)
- Buy-now-pay-later platforms (BNPL)
- Credit cards or overdraft services
The Central Bank of Nigeria (CBN) has
made credit reporting mandatory for lenders, so there’s no hiding from it. If
you’ve borrowed money or defaulted on a loan, you likely have a credit profile
somewhere.
What Is a Credit Score in Nigeria?
A credit score in Nigeria is typically
a three-digit number between 300 and 850, representing your creditworthiness.
The higher your score, the better your chances of getting approved for credit.
Your score is based on factors like:
- Loan repayment history
- Debt level
- Number of credit accounts
- Length of credit history
- Types of credit used
A bad score can make it harder to
access loans or financial products, while a good one can earn you better
interest rates, approval speed, and financial trust.
Why Should You Care About Your Credit Score?
Here’s the truth: Credit scoring is
the future of financial access in Nigeria.
With the rise of fintechs, digital
lending, and buy-now-pay-later services, your credit score can soon determine
whether you can:
- Get a loan without collateral
- Increase your loan limits
- Access rent-to-own property deals
- Qualify for business grants or partnerships
- Avoid high-interest rates
In short, a strong credit score opens
doors.
How to Build a Good Credit Score in Nigeria
Whether you’re starting from scratch
or recovering from past mistakes, here’s how you can build or improve your
credit score in Nigeria.
1. Borrow Responsibly
Start with small, short-term loans
from digital lenders like:
- Carbon
- FairMoney
- Branch
- Aella Credit
- Renmoney
Repay on or before the due date. Your
repayment history is the biggest factor in your credit score.
Tip: Avoid borrowing from
multiple lenders at once. Too many credit checks in a short period can hurt
your score.
2. Repay Loans on Time
Even if it’s ₦3,000 or ₦30,000—never
default. One missed payment can drop your credit score significantly. It also
stays on your record for years.
Use reminders, set auto-debit if
necessary, and prioritize debt repayment.
3. Avoid Loan App Blacklisting
Some predatory loan apps threaten or
embarrass defaulters by calling their contacts. Apart from the harassment, they
also report defaulters to credit bureaus.
Stick with CBN-licensed and ethical
lenders, and never borrow more than you can repay.
4. Request and Review Your Credit
Report
You can check your credit report and
score from:
Most bureaus offer one free report
per year. Review it for errors and dispute any wrong information.
5. Use BNPL or Postpaid Services
Wisely
Platforms like CDcare, Zilla, and Carbon
Zero offer “Buy Now, Pay Later” services. They report your repayment behaviour
to credit bureaus.
If used responsibly, BNPL can help
build your credit. If abused, it can destroy it.
6. Maintain Low Debt Levels
Owing too much at once—even if you’re
repaying—can reflect poorly on your credit score. Try to maintain a healthy
balance between your income and debt exposure.
7. Stay Consistent and Patient
Credit scores are not built
overnight. Even with perfect repayment behaviour, it can take 6–12 months of
consistent borrowing and repaying to reach a good score.
Think long-term. Build habits, not
hacks.
What’s a Good Credit Score in Nigeria?
|
Score Range |
Rating |
What It
Means |
|
750 – 850 |
Excellent |
You’re
creditworthy and reliable |
|
650 – 749 |
Good |
Likely to
get approved for credit |
|
550 – 649 |
Fair |
May need to
prove your creditworthiness |
|
300 – 549 |
Poor |
High risk,
loan approval unlikely |
What to Avoid If You Want a Good Score
- Defaulting on loans
- Over-borrowing from multiple sources
- Ignoring your credit report
- Using shady loan apps
- Taking loans just to “build credit” without a
plan
Final Thoughts: Build It Before You Need It
If you’ve never thought about your
credit score in Nigeria, now is the time. As the financial landscape becomes
more digitized, your score could be the difference between getting financial
support or being locked out.
Whether you’re a student, NYSC
member, entrepreneur, or salary earner, start small. Borrow wisely, repay
consistently, and check your report.
Your credit score may not matter
today—but it definitely will tomorrow.
Disclaimer:
.jpg)
0 Comments