Will Defaulting on Loans Affect My Credit Score?

Yes, defaulting on payments in Nigeria can affect your credit score, and often more seriously than people realize.

When you miss payments on loans, credit cards, or Buy Now, Pay Later (BNPL) services your lender may report this to any of Nigeria's licensed credit bureaus. These reports are added to your credit file and can lower your credit score.

Here's what really happens:

• A late or missed payment is flagged: Even one missed payment can show up as a negative mark on your credit report.
• Your profile becomes "high risk" to lenders: Once flagged, banks, loan apps, or cooperatives may be less likely to approve future credit.
• It stays on your record for a while: Negative credit data in Nigeria can stay on your report for up to 5 years.
• Your borrowing options shrink: Lower scores mean fewer options and higher interest rates even when you're eventually approved.

But the good news is: you can recover.
Paying off what you owe, negotiating a repayment plan, and keeping up with future payments all help repair your credit over time.

Want to see how your past activity has affected your score? Scorewise helps you track your credit score and understand what impacts it. The platform is designed by leading fintech innovator Tendar, and is available on the App Store or Google Play Store.