5 Mistakes That Damage Your Credit Score in Nigeria

Do you know you can damage your credit score without knowing?

In Nigeria, many people are actively working toward financial independence, whether you're earning a steady income, opening a savings account, or exploring new side hustles. Credit scoring is becoming increasingly important and can affect your ability to get loans, rent apartments, or secure certain jobs. The surprising part? You could be damaging it without knowing.

Unfortunately, many people damage their credit scores without knowing it. Below are five common mistakes that could quietly damage your financial reputation:

1. Ignoring Loan Repayment Dates
Between office deadlines, Lagos traffic, and balancing your personal life, it's easy to forget a loan repayment. But credit bureaus track those missed payments, even if they're just a few days late.
Pro Tip: Automate your repayments if possible. Or set calendar reminders before the due date.

2. Defaulting Buy Now, Pay Later (BNPL) Services
BNPL services are helpful when cash is tight. But failing to repay on time affects your credit record, regardless of how small the loan is.
Pro Tip: Treat BNPL like real loans, because that's what they are.

3. Applying for Too Many Loans at Once
Desperate times can lead to desperate applications, especially when you are low on cash. Applying for multiple loans in a short time sends red flags to lenders and can affect your credit score.
Pro Tip: Space out loan applications and only borrow when necessary.

4. Not Knowing You Even Have a Credit Score
Many people don't realize that banks and fintech report to credit bureaus. That phone loan you defaulted on might still be haunting your credit report.
Pro Tip: Check your credit report at least once in two months.

5. Co-signing or Guaranteeing Loans Without Thinking Twice
Your colleague or friend might ask you to guarantee their loan, "For formality,". But if they default, your credit score can be affected too.
Pro Tip: Only co-sign if you trust them enough to repay, and if you could repay on their behalf if needed.

A poor credit score today could stand in the way of opportunities tomorrow.
Download the Scorewise app on the App Store or Play Store to check your credit score, track your credit health, and make informed financial decisions.

Your credit journey starts with awareness.