Beginner’s Guide to Credit Scores in Nigeria

If you're new to the idea of credit scores in Nigeria, you're not alone. For a long time, most people got loans based on relationships or collateral, not credit history. But today, your credit score is one of the most important tools for accessing loans, improving your financial reputation, and unlocking better financial opportunities.

So what exactly is a credit score, how is it calculated, and why does it matter?

What is a credit score?

A credit score is a number that represents how reliable you are when it comes to paying back money you borrow. In Nigeria, this score is based on your credit activity, how you’ve handled loans, utility payments, and other financial obligations. The higher the score, the more trustworthy you look to lenders. A low score suggests a history of late payments, defaults, or no borrowing history at all.

Most scores range from 300 to 850, and are provided by licensed credit bureaus.

How is your credit score calculated in Nigeria?

Your score is calculated using several factors:

• Payment history: Do you pay back loans on time?
• Debt levels: How much do you owe compared to your credit limit?
• Length of credit history: How long have you been using credit?
• Credit mix: Do you use different types of credit (loans, credit cards, etc.)?
• New credit activity: How often do you apply for loans?

Each credit bureau may weigh these factors a bit differently, but they all look at your credit behaviour to give a complete picture.

Why does your credit score matter?

A good credit score can give you better access to financial services. With a higher score:

• You’re more likely to get approved for loans and credit cards.
• You may qualify for lower interest rates.
• You build trust with lenders and financial institutions.
• Some landlords and employers may even check your credit when reviewing applications.

How do you check your credit score?

You can track your score more easily and frequently using platforms like Scorewise, which helps you monitor your credit health and offers tips to improve your score.

How to build or improve your credit score

Whether you’re just starting or trying to recover from a poor score, these actions can help:

• Pay all bills on time, especially loans and utilities.
• Clear outstanding debts or negotiate repayment plans.
• Avoid applying for multiple loans at once.
• Keep your credit usage low and use only what you need.
• If you don’t have a credit history, consider starting with a small loan or a credit builder product.

Need help keeping up with your credit journey? Scorewise makes it easier to check your credit score, understand what’s affecting it, and improve it with personalized tips. The app is available on the App Store or the Play Store.