Your credit history and why it matters
Learn what credit bureaus record, what can build or damage a credit history, and how to request a report or correct an error. Your actual rate depends on your credit history.
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Borrowing records become a history
Every time you borrow, from a bank, a microfinance bank, or many loan apps, a record is kept. How much you borrowed, and whether you paid back on time. Put together, that's your credit history.
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Borrowing records become a history
Every time you borrow, from a bank, a microfinance bank, or many loan apps, a record is kept. How much you borrowed, and whether you paid back on time. Put together, that's your credit history.
Lenders may check your history
Lenders look at it before they decide whether to lend to you, how much, and at what rate. A good history can mean a bigger loan at a better price. A bad one can mean a 'no', or a much more expensive 'yes'.
Credit bureaus in Nigeria and Ghana
These records are kept by credit bureaus. In Nigeria, licensed bureaus include CRC, FirstCentral and CreditRegistry. In Ghana, they include XDS Data, Hudson Price and Dun and Bradstreet. Lenders report to them, and check with them.
Habits that build a good history
What builds a good history? Paying every instalment on time. Borrowing only what you can repay. Not taking many loans at once. And keeping your details, like your BVN or Ghana Card, correct and consistent.
Late or missed payments
What damages it? Late payments. Missed payments. Loans you walk away from. Even a small loan app debt, left unpaid, can follow you for years.
Request your own report
Here's something many people don't know: you can ask a credit bureau for your own report. Check it once in a while.
Ask to correct an error
If you see a loan you never took, or a payment marked late that you paid on time, you can ask for it to be corrected. Mistakes do happen.
Credit history can improve over time
If your history isn't great today, don't panic. Start paying on time now. Recent behaviour matters, and history improves with time.
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General education, not financial advice. Amounts shown in illustrations are examples only.