Want to know what is a good credit score in Nigeria? A credit score is an exclusive credit classification system that shows creditors how risky it is to lend to someone who wants to borrow from them. Developed by Fair Isaac Corporation (FIRC), an American data and analysis company, helps people know what credit status is and creditors make fast and informed decisions. Your credit score depends on the information in your credit file, which corresponds to your credit history for a period.
Credit factors are credit score and the lower the score, the riskier it is for creditors. A credit score is in fact a number of three digits with a minimum of 300 and a maximum of 850.
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What Is A Good Credit Score In Nigeria?
What is a good credit score in Nigeria? A good credit score should be between 700 and above. When calculating the credit score, the standard measures are:
- 300-599 – Very bad
- 600-649 – Bad
- 650-699 – Fair
- 700-749 – Good
- 750-799 – Very good
- 800-Above – Excellent
We will not only be looking at what is a good credit score in Nigeria, Lets show more information about how you can calculate your credit score, and how you can also access your credit report in Nigeria.
How Can I Calculate My Credit Score?
The following factors form the basis of how you can calculate your credit score
• Your Payment History
This refers to the degree of compliance with the agreed payment conditions. Ideally, however, it should be 35%, however, factors such as bankruptcies, late payments, and standard-setting influence the result.
• The Amount You Owe
This leads to the assessment of the amount that owes to your account, the number of accounts with a balance, and the available credit. This rate is higher than 30%
• The Search For New Credit
If you have recently opened a new credit account, the score weighs against the rest of your credit history. The rate is higher than 10%
• Duration Of Credit History
You can get a good credit score with a short credit history if the rest of the report shows your responsibility with credit. However, an extensive credit history increases your credit score. The rate is higher than 15%.
• Your Credit (Mix) Breakdown
Installment loans, credit cards, and personal lines of credit can increase your credit score somewhat. The rate is above 10%.
How Do You Get Access To Your Credit Score In Nigeria?
After we have answered your questions on what is a good credit score in Nigeria? Let’s move on to how you can access your credit score in Nigeria. By now you should know that a credit score plays a crucial role in someone’s financial life. It is a three-digit summary of your credit report that determines your credibility, describing your credit activities for your entire history as a borrower.
If you have already thought that you will receive a loan, your credit score is what loan settings evaluate to determine how safe or risky you are as a potential customer. Your credit score depends on your account activity.
To access your credit score, you need your credit report because your classifications depend on the information in your reports. A credit report contains details about your existing and existing credit contracts. This includes credit, loans, mortgages, collection, cards if you have made punctual payments for your accounts, and the companies of companies that have recently seen your credit history.
How Do I Get Access To A Credit Report In Nigeria?
As a Nigerian, you can get a free credit report every year from every credit agency that is registered in Nigeria.
1. Subscribe to the CRC Credit Bureau website. CRC Credit Bureau also has a USSD code (*565*8#) that you can call to check the credit reports immediately. You should be an MTN subscriber to use the USSD option.
2. You also have access to a free credit report on the website of the credit registration. Credit registration offers a free report annually.
3. Receive a free credit report from carbon payers. Carbon also offers free credit reports to Nigerians.
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Conclusion – What Is A Good Credit Score In Nigeria?
Knowing your credit score not only helps to take control of your finances but also makes you better prepared to request a loan in Nigeria. The calculator of the credit score is easily accessible and you can buy it for the N400 on the Credit Bureau website.
We recommend that you check your credit score at least once a month. It is also important that you learn about control, we have an article about it and you can read it here.