Steps to Get Approved for a Loan After Experiencing Bad Credit

Poor credit history can make you ineligible for loans, especially from banks and registered lenders. Missed payments, outstanding loans, or blacklisting by the credit bureaus can all negatively impact your credit record. But here's the twist: you can borrow money again even with a poor credit history.

Here's how to bounce back:

Know Why Your Credit History Is Bad
Before taking out a new loan, it's important to understand why your credit is poor. Common reasons for bad credit include:

• Missed or delayed loan repayments
• Unpaid bank or loan app debts
• Too many concurrent loans
• Negative reports from credit bureaus
• Blacklisting by banks or institutions
  You can obtain this information by requesting your credit report from a credit bureau in Nigeria.

Settle Outstanding Debts
Clear out any outstanding or defaulted loans. Most lenders will reject your application if you still owe money elsewhere. Settling is a good start to restore your creditworthiness. What to do:

• Contact the lender to know the exact balance.
• Request a payment plan if you can't pay it outright.
• Ask for a settlement notice or letter when the debt is paid.
• Ensure the lender reports your status to the credit bureau.

Restore Your Credit Score Over Time
After paying off your debts, focus on building your credit profile. Borrow a little from a trusted source and pay on time or in advance. Each time you repay a loan successfully, your credit score improves, increasing your chances of being approved for future loans.

Avoid Shady or Illegal Loan Apps
Desperate borrowing may lead to more issues. Stick to verified lenders that follow Nigeria’s data privacy and lending rules.

Monitor Your Credit Progress
After getting a new loan and repaying it responsibly, keep monitoring your credit growth:

• Check your credit score regularly with Scorewise
• Confirm that all payments are properly reflected.
• Keep proof of every repayment.

A bad credit record doesn't mean you'll never be able to borrow again; it simply means you'll need to rebuild lenders' trust over time. It may take time and patience, but it is more than possible. You can check your credit score on Scorewise.

Download Scorewise on the on Apple store or playstore to check your credit score, see where you stand, and how to improve it.