Recently, the Nigerian apex bank CBN sanctioned many deposit money banks for not availing the real sector enough credit/loans. The implication is that the economy will be flooded with many loan offers not just from commercial banks but also from other smaller lending firms both online and offline. Credit is the way to go!
This trend affects not just the financial sector but also the goods market. Recently I learned of the EasyBuy concept of acquiring even mobile phones, whereby you can buy on credit and pay in installment and an agreed interest rate on the outstanding balance. All these offers look sumptuous to the common consumer. But there is a hidden danger.
What you must know
As attractive as these credit offers look, it is imperative that consumers and businessmen and women have the right orientation of how credits work, what should inform their decisions and how to maintain good credit score.
In developed nations like the US, the Credit Score informs each one credit history and current credit-worthiness of an individual. One who fails to meet his credit obligations as and when due is risking have delinquent loans and bad credit record. Now as Nigeria is gradually having her economy driven by more and more credit, every consumer must know it is important to make the right decisions as far as credit is concerned.
Credit Bureaus
Most loans and credits taken by both individuals and corporate bodies are registered with the central credit database. These records help check a borrowers current exposure/indebtedness and also the credit record. These data can be used to access a new credit request.
Bad loans -- bad credit record
A bad credit score or record in many developed nations is a bad omen. In Nigeria, as we gradually have centralized credit record database where credit check is performed on a borrower, it is important to note that everyone who takes a loan or buys on credit in Nigeria will have his BVN attached to the record. This makes it imperative that everyone must ensure good credit record.
Don't take just any loan!
Not all credits are good for you! It is important to understand all the terms and conditions as with any contractual agreement.
Take note of:
1. The rate (flat or reducing balance?)
2. The terms of repayments
3. The collateral
4. Other general terms and conditions
There is more to this topic and the floor is open for discussion.
Recently, the Nigerian apex bank CBN sanctioned many deposit money banks for not availing the real sector enough credit/loans. The implication is that the economy will be flooded with many loan offers not just from commercial banks but also from other smaller lending firms both online and offline. Credit is the way to go!
[center][img]https://bestnaija.ng/download/file.php?mode=view&id=13399&sid=75d8702f4bfc9570a2c6be08ce0b20eb[/img][/center]
This trend affects not just the financial sector but also the goods market. Recently I learned of the EasyBuy concept of acquiring even mobile phones, whereby you can buy on credit and pay in installment and an agreed interest rate on the outstanding balance. All these offers look sumptuous to the common consumer. But there is a hidden danger.
[b]What you must know[/b]
As attractive as these credit offers look, it is imperative that consumers and businessmen and women have the right orientation of how credits work, what should inform their decisions and how to maintain good credit score.
In developed nations like the US, the Credit Score informs each one credit history and current credit-worthiness of an individual. One who fails to meet his credit obligations as and when due is risking have delinquent loans and bad credit record. Now as Nigeria is gradually having her economy driven by more and more credit, every consumer must know it is important to make the right decisions as far as credit is concerned.
[b]Credit Bureaus[/b]
Most loans and credits taken by both individuals and corporate bodies are registered with the central credit database. These records help check a borrowers current exposure/indebtedness and also the credit record. These data can be used to access a new credit request.
[b]Bad loans -- bad credit record[/b]
A bad credit score or record in many developed nations is a bad omen. In Nigeria, as we gradually have centralized credit record database where credit check is performed on a borrower, it is important to note that everyone who takes a loan or buys on credit in Nigeria will have his BVN attached to the record. This makes it imperative that everyone must ensure good credit record.
[b]Don't take just any loan![/b]
Not all credits are good for you! It is important to understand all the terms and conditions as with any contractual agreement.
Take note of:
1. The rate (flat or reducing balance?)
2. The terms of repayments
3. The collateral
4. Other general terms and conditions
There is more to this topic and the floor is open for discussion.
