Credit bureaus were established by the Central Bank of Nigeria to play the vital role of managing credit risk while financing the economy. Credit bureaus provide the relevant information that enable lending institutions make good lending decisions and also increase their lending to more individuals and organizations.

Credit Bureaus have consistently improved transparency in loan application processes in Nigeria over the years. They provide consumers with the credit report that loan providers will use to do a check on them when they apply; so they are aware of what is reported about them.

Credit reporting systems have proven to be the fastest and most successful way to facilitate the necessary growth in accessing loans/credit. The main aim is to promote responsible behavior in borrowers so that the rate of non-performing loans can reduce. However, it is not enough for individuals/organizations to only pay back their loans as at due time, they must also monitor the reports. Sometimes accounts go into debit as a result of charges and we may not be aware especially if that is not our main account. The owners of these accounts are reported as debtors to credit bureau without them even knowing.

Credit experts recommend that consumers request their credit report at least twice every year to check for inaccurate information. Understanding your credit report and keeping track of what is reported of you to credit bureaus is the key to building a good credit profile. This is being proactive... You get to see if there are any anomalies reported about you by any institution and ensure they are corrected/updated. Then you can confidently approach any bank to apply for loans because you have successfully reduced the chances of getting rejected.

How much to you know about your credit status?

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