Your Village People Are Not the Reason Your Loans Keep Bouncing

In Nigeria, it’s common to joke that “village people” are behind every misfortune, from failed exams to broken relationships. So, when loan applications get denied or repayments become difficult, many people laugh it off and blame unseen forces.

But here’s the truth: your loan troubles are more likely tied to your credit behaviour than to spiritual interference.

Why Your Loans Keep Getting Denied

When your loan keeps bouncing, whether through apps, banks, or BNPL services, lenders are making a data-driven decision. These are some of the real reasons:

1. Low or Poor Credit Score:
   If your credit score falls between 300 and 599, lenders see you as high-risk. They worry you might not repay, especially if you've missed payments before.
2. Too Many Outstanding Loans:
   Having multiple unpaid loans signals financial strain. Lenders will hesitate to approve another one until you clear existing debts.
3. Late or Missed Repayments:
   Even if you repay eventually, lateness damages your reputation. Credit bureaus record this, and lenders check your credit history before approving new funds.
4. Loan App Blacklisting:
   If you defaulted on a loan from a digital lender and they reported you, your name could be flagged across several platforms. This makes it harder to borrow elsewhere.
5. No Credit History:
   Ironically, having no credit history can be just as bad. Lenders prefer to see a track record and even small borrowing activity to trust that you can repay.

So, What Can You Do?

• Get Your Credit Report:
  Use platforms like Scorewise to access your credit score and report to find out why you’re being denied.
• Pay Existing Debts:
  Start with what you owe. Clearing past loans helps rebuild trust with lenders and improves your credit score.
• Avoid Taking Too Many Loans at Once:
  It’s better to borrow small, repay on time, and gradually build your score than to stack up multiple unpaid debts.
• Use BNPL or Microcredit Smartly:
  Buy Now Pay Later services or microcredit providers that report to credit bureaus can help grow your score, only if you repay on time.
• Avoid Loan App Conflicts:
  If agents are calling your contacts, it’s a sign your account is in bad standing. Resolve these debts or negotiate repayment plans.

Finally, your financial habits shape your credit reality, not your village people. Check your credit score, clean up your report, and rebuild trust with lenders. Scorewise is here to help you understand, fix, and grow your credit standing with confidence. The platform is designed by leading fintech innovator Tendar, and is available on the App Store or Google Play Store.