What Your Landlord or Employer Can Learn from Your Credit Report

Your credit history is more than a bank or lender instrument in Nigeria’s changing economic and professional landscape. Employers and landlords use it to guide essential judgments about you. Although this rarely happens in Nigeria, unlike the U.S., where landlords and employers vet through credit reports.

So, what can your landlord or employer learn from your credit report if they do a background check on you, and how can it impact their decision to offer you accommodation or even a job in the financial field?

A credit report is an in-depth report of your credit history, gathered by authorized credit bureaus. It contains details such as your loan history and repayment habits, outstanding debt, defaults or late payment, credit inquiries (requests for credit), and other records.

What Your Credit Report Tells Landlords
Landlords are becoming wiser these days, especially when renting precious real estate. Here's what your credit report will say to a potential landlord:

1. Your History of Paying Rent on Time
Late loan payments can signal to landlords that you may be a high-risk tenant when your rent is due.

2. Your Debt Management Profile
Excessive debt may cause individuals to struggle with timely rent payments, particularly when their income is insufficient to cover expenses.

3. Your Financial Stability
A clean credit history, free of major red flags like unpaid loans, signals financial stability and can make landlords more willing to rent to you without requiring large deposits or guarantors.

What Employers Can Learn From Your Credit Report
Some employers, particularly in finance, security, and senior management, may consider credit reports as part of their hiring or promotion process.

Note: Your credit report doesn't include your bank balance, salary, political opinion, religious belief, racial origin, criminal convictions (excluding financial judgments), and work reports.

Can They Access Your Credit Report Without Permission?

No. Under Nigerian credit reporting laws, landlords or employers must obtain your consent before accessing your credit report, typically through a signed authorization form. If someone checks your credit report without your consent, it’s a serious privacy violation. You should report it to the credit bureau or the right authority.

How to Secure and Establish Your Credit Reputation

• Always pay bills and loans on time.
• Check your credit report for fraud accounts or errors regularly.
• Do not take multiple loans at once.
• Do not ignore repayment reminders or default reports.

If you haven't checked your credit score in a while, now's a better time than any. It's not for banks alone, it's for your good name. Download the Scorewise app on the App Store or the Google Play Store to check your current score.