Grades Don't End in School

CRC Credit Bureau Limited Created on: 25 June, 2021 Last Updated on: 25 June, 2021
Grades Don't End in School

We get a lot of questions about why Credit Scores matter. To keep it simple, having a good Credit Score is like having an ‘A’ grade in your finances, with additional perks.  Whether we like it or not, the reality is, that our Credit Scores are important and can influence financial opportunities available to us as individuals.

Just like your grades can determine, the kind of schools you gain admission into, or the kind of employment you get, your Credit Scores can determine, if you can access loans in the Nigerian financial sector. It can even influence the type of interest rates you are charged.

The Credit Score is a three-digit number that ranges from 300-850, that shows prospective lenders or creditors how risky an individual is, to do business with. It summarizes credit risk, by analyzing the contents of a Credit Report, at a point in time and represents that information in a numerical format with 300 being the lowest (high risk) and 850 being the highest (low risk).

So, even though, you might have gotten a ‘ D’ in mathematics in your exams years ago and that grade will probably stay on your academic record for life, your Credit Score shows your credit risk at a particular point in time and you do not get blacklisted for life.

Having a good Credit Score, means being consistent and disciplined in your finances and credit activities. This could be as simple as, making regular and on-time credit card payments and paying off existing debt.

Your Credit Score is not cast in stone and changes with your financial lifestyle and habits over time. Knowing what your Credit Score is and requesting for it regularly, gives you the opportunity to understand and do better with your finances.

Take the first step towards financial responsibility and find out what your grade is, in the financial sector. Click here to request for your Credit Score today!