Credit Score – A credit score is a one-of-a-kind credit rating system that tells lenders how dangerous lending to a certain person is. It was created by the Fair Isaac Corporation (FIRC), a data and analytics business based in the United States, to assist individuals in understanding their credit status and lenders in making rapid and educated judgments. The information on your credit report, which is your credit history over time, determines your credit score. In this article, we will show you how to check credit score in Nigeria.
Table of Content
- What is credit score
- How to Work Out Your Credit Score
- How do you get your credit score in Nigeria?
- How you can get a credit report in Nigeria?
Credit score elements influence your credit score, and the lower your credit score, the more risky you are to lenders. A credit score is just a three-digit number with a minimum of 300 and a high of 850. The following are the standard measures used to calculate a credit score:
- Excellent 800-above
- Very Good 750-799
- Good 700-749
- Fair 650-699
- Poor 600-649
- Very Bad 300-599
How to Work Out Your Credit Score
if you want to work check credit score in nigeria, he following elements are used to determine your credit score.
1. Payment History
This refers to how well agreed-upon payment terms have been followed. It should ideally be at 35 percent, however, variables like as bankruptcies, late payments, and payment default have an impact.
2. Amount Owed
The amount outstanding in your account, the number of accounts with a balance, and the available credit are all considered. This is a rate of more than 30%.
3. New Credit
If you’ve recently created a new credit account, your score will be compared to the remainder of your credit history. The rate is more than 10%.
4. Credit History Length
If the remainder of your report demonstrates your credit responsibility, you can get a decent credit score with a short credit history. A long credit history, on the other hand, improves your credit score. The rate is more than 15%.
5. Credit Mix
Installment loans, credit cards, and personal lines of credit can all help you raise your credit score marginally. The rate is more than 10%.
How do you get your credit score in Nigeria?
In one’s financial life, one’s credit score is quite important. It’s a three-digit summary of your credit report that analyses your creditworthiness by laying out all of your credit activities over the course of your borrowing history.
If you’ve ever considered taking out a loan, your credit score is what lenders look at to determine if you’re a safe or risky consumer. Your credit score is based on how much you use your accounts.
Because your ratings are based on information in your reports, you’ll need your credit report to obtain your credit score. A credit report contains information about your previous and current credit agreements. Credit, loans, mortgages, debt collections, cards, whether you’ve made on-time bill payments, and lists of organisations that have lately seen your credit history are all examples. Inquiries are what these credit checks are.
How you can get a credit report in Nigeria?
As a Nigerian, you are entitled to one free credit report per year from any Nigerian credit bureau. Here are several options for getting your free credit report:
- On the CRC Credit Bureau’s website, fill out an application.
- You can also check credit records instantaneously by dialling the CRC Credit Bureau’s USSD code (*565*8#). To utilise MTN’s USSD service, you must be a subscriber.
- On the Credit Registry’s website, you may also get a free credit report. Annually, the Credit Registry provides a free report.
Knowing your credit score not only allows you to better manage your finances, but it also helps you prepare for a loan application in Nigeria. The credit score calculator is simple to use and can be purchased on the Credit Bureau website for N400. We recommend that you check your credit score once a month at the very least. It’s also critical that you learn about control; we’ve written an article about it, which you can read here.