A poor credit score in Nigeria can feel like a financial dead-end, blocking access to loans, mortgages, and even better employment. However, rebuilding your creditworthiness is entirely possible with a clear, disciplined plan.
This complete guide provides expert, actionable steps tailored to Nigeria’s financial system. We’ll cover practical methods, from debt resolution to leveraging local tools like the CRC Credit Bureau, to help you restore your financial reputation and unlock new opportunities.
Requirements / What You Need
Before you begin the process of rebuilding your credit score in Nigeria, gathering the right documents and information is crucial. This preparation saves time and helps you navigate the process smoothly, even with potential internet connectivity issues at cyber cafés or on your phone.
- Valid Government-Issued ID: Your National Identification Number (NIN) slip, International Passport, or Driver’s License.
- Bank Verification Number (BVN): This is the cornerstone of your financial identity in Nigeria and is mandatory for any credit report check.
- Recent Utility Bill: A PHCN (electricity) or water bill from the last three months for address verification.
- Details of Outstanding Debts: Know the exact lender names (e.g., bank, microfinance, fintech like FairMoney), account numbers, and outstanding balances.
- Budget for Fees: Allocate roughly ₦3,500. This covers your credit report from a bureau like CRC or FirstCentral (approx. ₦3,000) and potential bank charges for document attestation.
A key point Nigerians often misunderstand: You do not need a lawyer or an agent to check your credit report or start rebuilding. You can initiate everything directly with your bank or the accredited credit bureaus.
Step-by-Step Process
Step 1: Obtain Your Credit Report First, you must know your exact starting point. Visit the website of an accredited credit bureau like CRC Credit Bureau, FirstCentral Credit Bureau, or CreditRegistry. Request your report online using your BVN and pay the fee (typically ₦3,000). Watch out for: The portal may ask for additional verification; have your ID and phone ready. If the website is slow, try early in the morning or use a cyber café with stable internet. This report will list all your credit accounts and the specific lenders reporting your defaults.
Step 2: Review and Dispute Errors Scrutinize the report for inaccuracies—wrong balances, accounts you didn’t open, or loans already fully repaid. If you find any, immediately file a dispute with the credit bureau that issued the report. They are legally required to investigate within 15 working days. Watch out for: Keep all your payment receipts (bank alerts, transfer slips) as evidence. The investigation can be delayed if your evidence is not clear, so be thorough.
Step 3: Engage Lenders and Negotiate Settlement Contact each lender where you have a delinquent account directly. For banks, visit the branch where the account was opened. For fintech apps, use their customer service lines. Do not ignore them. Propose a realistic repayment or settlement plan. Many institutions will accept a lump-sum payment that is less than the total owed to close the account. Watch out for: Get any settlement agreement in writing (email or stamped letter) before making payment. A verbal agreement holds no weight for updating your credit status.
Step 4: Make Consistent, Agreed Payments Once a plan is in place, adhere to it religiously. Set reminders and pay before the due date. The goal is to show a new, consistent pattern of responsible repayment. Watch out for: Even one missed payment under the new plan can reset the negative clock and harm your rebuilding efforts more severely.
Step 5: Acquire and Manage New Credit Responsibly After clearing major defaults, apply for a small, manageable credit product to build a positive history. This could be a low-limit credit card from your bank or a small buy-now-pay-later offer on a platform like Jumia. Use it sparingly and pay the full balance monthly. Watch out for: Do not apply for multiple credits at once. Each application triggers a “hard inquiry” on your report, which can further lower your score.
Alternative Methods
While the online process is standard, several alternative paths exist for Nigerians with limited internet access or who prefer in-person engagement. Choosing the right method depends on your location, tech-savviness, and the complexity of your credit issues.
For a physical approach, you can visit the Lagos or Abuja office of a credit bureau like CRC Credit Bureau or CreditRegistry to request your report in person. This is better if you need help understanding the document or have multiple disputes to file immediately. Some commercial banks in major states like Rivers, Kano, and Oyo also have dedicated customer service desks that can assist with credit report requests and initial debt resolution discussions.
For structured financial education, consider programs offered by the Central Bank of Nigeria (CBN) in collaboration with NGOs, often advertised through your bank. These workshops, sometimes held at community centres or university campuses like the University of Lagos or Ahmadu Bello University, provide guided financial counselling. This alternative is better if your credit issues stem from a lack of budgeting knowledge and you need a holistic strategy alongside the technical steps of rebuilding.
Common Problems and Solutions
Problem: “Credit Bureau Portal is Not Working or Rejecting My BVN”
This is a frequent issue due to network glitches or data synchronization errors between the bureau and NIBSS. You may get an error message stating your BVN details cannot be verified.
Solution: First, confirm your BVN details with your bank via USSD code (*565*0#) or at a branch to ensure they match your ID. If the portal still fails, switch to a more stable network or try the request at a reputable cyber café. As a last resort, visit the bureau’s physical office in Lagos or Abuja with your ID and BVN slip for manual processing.
Problem: “My Report Shows a Debt I Already Paid or Wrong Account Balance”
Lenders in Nigeria sometimes delay updating ‘settled’ status to credit bureaus, or errors occur during data submission, leaving a cleared loan showing as active and delinquent.
Solution: Do not panic. Immediately gather your proof of payment—this is crucial. This includes bank transfer receipts with the lender’s account details, transaction alerts, or a stamped clearance letter from the lender. File a formal dispute with the credit bureau, attaching these documents. Follow up with a phone call every 72 hours until it is resolved.
Problem: “The Lender is Refusing to Give Me a Settlement Agreement in Writing”
Some recovery agents or bank staff may pressure you to make a payment verbally, promising to “update the system later,” leaving you with no proof to clear your name at the credit bureau.
Solution: Never pay without written proof. Politely insist that the settlement offer and confirmation that the account will be reported as “settled” to the credit bureaus be sent via official email or on a stamped letterhead. If they refuse, escalate the matter to the lender’s head office customer service or mention your intent to report the practice to the Central Bank of Nigeria (CBN) through its Consumer Protection Department.
Fees, Costs and Timeline
Rebuilding your credit score in Nigeria involves minimal official costs but requires careful budgeting. The primary fee is for your credit report, which is standardized at ₦3,000 per request from any accredited bureau. Some banks may charge a small attestation fee (₦500 – ₦1,000) for verifying documents. Beware of agents who claim they can “expedite” the process for ₦10,000 or more; this is unnecessary, as you can do it yourself for the official fee.
The timeline is not instant. After settling a debt, allow 30-45 days for the lender to update the credit bureaus. Disputing an error takes up to 15 working days for investigation. Significant score improvement typically requires 6 to 12 months of consistent, positive credit behaviour. Note that while core fees are national, incidental costs like transport for branch visits may vary by state.
Warnings and Scams to Avoid
- Agents Promising “Quick Fixes”: Be wary of individuals on social media or at market squares claiming they can “clean” your credit report for a fee (e.g., ₦20,000). Your credit history is a legal record; no one can erase accurate negative information. Only consistent repayment and time can improve it.
- Fake Credit Bureau Portals & WhatsApp Messages: Scammers create clone websites or send SMS/WhatsApp messages asking you to “click a link to check your credit score.” Always use the official websites of CRC, FirstCentral, or CreditRegistry directly. Never enter your BVN or debit card details on unsolicited links.
- Upfront “Processing Fees”: No legitimate Nigerian lender or bureau will ask for a large upfront cash payment to “process” a debt settlement or report dispute. All official fees are transparent and receipted. Any request for payment via personal bank accounts (e.g., Opay, Palmpay) to an individual is a major red flag.
Acceptance, Use and Next Steps
A successfully rebuilt credit score is a powerful financial tool accepted across Nigeria’s formal lending sector. It is used by commercial banks, mortgage institutions, and major fintech companies (like Branch and FairMoney) to assess your loan applications, determine interest rates, and approve credit limits. Some employers in the financial services and telecom sectors may also check it as part of their background verification.
Your immediate next step should be to check your credit report annually to monitor your progress and ensure no new errors appear. Consider applying for a secured credit facility, like a small salary-backed loan from your bank, to add more positive data to your file.
A key limitation to understand is that while a good score improves your eligibility, final loan approval still depends on your current income level and debt-to-income ratio. Therefore, continue to build your savings and maintain stable employment alongside your credit repair efforts.
Frequently Asked Questions
How long does it take to rebuild a credit score in Nigeria?
There is no fixed timeline, as it depends on the severity of your defaults. However, with consistent effort—clearing debts and managing new credit responsibly—you can see significant improvement within 6 to 12 months. Negative information like defaults typically remains on your report for up to 6 years, but its impact lessens as you build a newer, positive history.
Can I remove a default from my credit report in Nigeria?
You cannot remove an accurate default. If you genuinely defaulted, that record stays. However, once you settle the debt, the status will be updated to “Settled” or “Closed,” which is far better for your score than an active “Bad” debt. The only removable items are inaccurate entries, which you can dispute with the credit bureau.
Does checking my own credit report lower my score?
No. When you check your own report directly from a bureau like CRC or CreditRegistry, it is recorded as a “soft inquiry,” which does not affect your score. Your score is only impacted by “hard inquiries” made by lenders when you apply for a new loan or credit card.
Will my credit score improve if I close my old bank account?
No, closing an old bank account, especially one with a loan history, does not help. Your credit report is linked to your BVN, not a specific account. All credit history under your BVN is consolidated. It is better to maintain old accounts in good standing, as a longer credit history can positively influence your score.
Do Ajo/Esusu contributions affect my credit score?
Typically, no. Most traditional rotating savings schemes (Ajo/Esusu) are informal and are not reported to the credit bureaus. However, some registered fintech platforms that digitize these contributions may report your repayment behaviour. Always confirm with the platform if they report to credit bureaus.
What is a good credit score in Nigeria?
Scores in Nigeria typically range from 300 to 850. A score above 650 is generally considered good and increases your chances of loan approval. Scores between 550-650 are fair but may attract higher interest rates. Anything below 550 is considered poor and will make accessing credit from formal institutions very difficult.
Disclaimer
This article is for informational purposes only and does not constitute professional financial or legal advice. Credit regulations and reporting practices in Nigeria may change. Readers are strongly advised to verify all information directly with accredited credit bureaus, their financial institutions, or consult a qualified financial advisor for guidance tailored to their specific situation. The author and publisher are not liable for any decisions made based on this content.