Do Banks in Nigeria Use Credit Scores?

In many countries, credit scores are a major factor in deciding who qualifies for loans or credit cards. But what about Nigeria? Do Nigerian banks rely on credit scores when issuing loans or credit cards?

Yes, Nigerian banks and lenders use credit scores to evaluate loan applications.** However, how they use these scores and how much they rely on them varies depending on the bank and the individual customer.

What is a Credit Score?

A credit score is a three-digit number that shows your creditworthiness, how you pay loans or credit on time.

Do Nigerian Banks Use These Scores?

Yes, most commercial banks in Nigeria use credit scores, especially when you apply for personal loans, salary advance loans, car loans, or overdraft facilities.

What Else Do Banks Consider?
In addition to your credit score, Nigerian banks will also look at:

• Bank account history (especially salary deposits)
• Employment status and level of income
• BVN record and anti-fraud checks
• Purpose of loan and repayment schedule
• Guarantors or collateral (in the case of secured loans)

Do All Banks Use Credit Scores Equally?
Not exactly. However, how they use these scores and how much they rely on them varies depending on the bank and the individual customer.

Why Is Your Credit Score Important Anyway? Even though it may not be the sole consideration, having a good credit score in Nigeria gives you a higher likelihood of:

• Getting loan approvals speedily
• Access to higher loan amounts
• Access to improved interest rates
• Getting approved more often by digital lenders It also puts you in a strong position for long-term access to money, particularly as Nigeria's financial system gets more credit-focused.
  So, yes, Nigerian banks use credit scores, but they will use them in conjunction with other financial data when determining whether or not to grant a loan.

How to Check Your Credit Score
You may check your credit score for a low fee from Scorewise. Simply download Scorewise on the App Store or the Play Store.