Let’s take a trip down memory lane. Do you remember the first time you had a pressing need for money and had few options on how to obtain it?
Back then, borrowing money was no walk in the park. You probably would have to ask your family members or friends, which is not usually guaranteed, or apply for a loan at the bank, which is a long and difficult process that requires collateral.
Times have changed. Now, there are financial services providers who have changed the game entirely, they have not only disrupted the lending ecosystem but also made credit more accessible today.
Loans can do wonderful things for you when properly managed. It can help solve urgent problems, cater to substantial expenses, and grow businesses. However, when mismanaged, it can quickly become a source of frustration and can cause real damage to your future financial prospects. All of this is recorded in a book called a credit report.
Let’s get you familiar with credit reports
Your credit report is like a report card for your financial health, created by the credit bureaus. When you apply for a loan, lenders will typically check your credit report to see how responsible you are with money. If you have a good credit history, you’ll be more likely to get approved for credit, and may even qualify for better interest rates.
A credit report includes information like your name, address, and employment history, as well as details about our credit accounts, like the types of credit you have accessed, and your repayment history.
Who are the Credit Bureaus?
Well, it’s a company that collects information about our credit histories. In Nigeria, we have three major credit bureaus: CreditRegistry, CRC Credit Bureau, and First Central Credit Bureau. But credit bureaus aren’t just about helping lenders make decisions and keeping track of our credit histories. They also help us build good credit. By making payments on time and paying off our debts, we can improve our credit scores and become more attractive to lenders. And, since credit bureaus keep track of this information, we can see the progress we’re making towards financial stability.
A step towards financial freedom
We’re all excited to exercise our democratic freedom this weekend, but it’s also important to work towards financial freedom too! And a big part of that is simplifying access to credit reports.
If you’re an Android user, you can check your credit report on the Carbon app for free.
By checking your credit report, you can make sure that the information being used to make lending decisions is accurate, and you can also work towards improving your creditworthiness. So, let’s not just exercise our democratic freedom this weekend — let’s work towards financial freedom too!