Debunking Credit Score Myths Nigerians Believe

In Nigeria, more people are starting to hear about credit scores, especially with the rise of digital lenders and credit-based services. But with this new awareness comes a lot of myths and misinformation. If you've ever wondered what's true or false about your credit score, this article is for you.

Let's break down and debunk some of the most common credit score myths Nigerians believe.

"Credit scores are only for rich people or big companies."
Wrong.

Truth is: Credit scores apply to anyone who has taken a loan, used a credit card, borrowed money through a financial institution, even small loans from digital apps. Whether you’re a student, trader, or civil servant, as long as you've borrowed money, you likely have a credit history and a credit score.

"I don't have a credit card, so I don't have a credit score."
Not true.

In Nigeria, most credit scores come from loan activity, not credit cards. If you’ve used a loan app, taken a salary advance, or borrowed from a microfinance bank, it could be recorded by credit bureaus, which may show when you check your credit report.

"If I don't borrow money, my credit score will be perfect."
Not quite.

While it's true that avoiding debt keeps you safe from owing money, it also means you have no credit history, which can make it harder to get loans when you need one. A good score means showing you can borrow and repay on time, not just avoiding loans completely.

"Once I pay off a loan, it disappears from my credit report."
False.

Your credit report records your loan history, including loans you’ve paid off. That’s a good thing! A good history of paid loans shows you’re reliable, which boosts your credit score. Only negative activity (like missed payments) damages your record.

"Loan apps can't affect my credit score."
They can, and they do.

Many digital lenders in Nigeria report to credit bureaus. If you take a loan and fail to repay it on time, your credit score can decrease. This is why even small loans should be taken seriously, they can affect your ability to borrow in the future.

"My credit score doesn't matter unless I need a big bank loan."
Wrong again.

Credit scores are used for more than just bank loans. Some employers, landlords, and even mobile phone companies may check your credit status before giving you access to services. And as Nigeria's economy becomes more digital, creditworthiness will matter even more.

"I can't check my credit score myself."
Who said that? You can. And you should.

Many Nigerians are unaware that they can check their credit score by simply using a credit score checker app like Scorewise.

Knowing your credit score helps you plan better and correct any mistakes.
You can check your credit score on the Scorewise app. Download Scorewise on the App Store or Play Store.

Credit scores are not a mystery or a punishment, they’re simply a record of how well you manage borrowed money. Don’t let myths mislead you.