Did You Know Africans Had Credit Scores?
Did You Know Africans Had Credit Scores?
You have most likely heard the term before. But what does it truly entail? The credit score is a measure of an individual’s financial health. Commonly used in the Western world and across Europe, a person’s credit score reflects the worthiness of their financial history and gauges the risk surrounding their financial life.
These three-digit numbers give a review of previous transaction history, active loan status, debt records, mortgages, and lots more. Many Africans are clueless about the fact that credit scores don’t just apply to people in the US or Europe. That’s right, Africans have credit scores too! Credit scoring systems are becoming increasingly common across various African countries, helping individuals and businesses build a solid financial reputation.
Countries like South Africa, Nigeria, Kenya, and Ghana have established credit bureaus that collect and analyze financial data to create credit scores for individuals and businesses. Meanwhile, their citizens have little to no knowledge of this as long as they have seen their monthly bank statements, all is well.
Why Do Credit Scores Matter?
Having a good credit score can open up a world of opportunities. For instance:
- Access to Loans: With a good credit score, you can get approved for personal and business loans with better interest rates.
- Better Financial Products: Credit scores can help you qualify for premium credit cards, mortgages, and other financial products. A good credit score can help you obtain certain financial privileges, from higher bank limits, fewer restrictions, and much more.
- Improved Convenience: While applying for visas to other countries, one of the major requirements is a credible bank statement with a fat balance. Instead of paying third-party individuals to borrow their financial statements, you might as well build yours to avoid paying for such.
How Do I Learn About My Credit Score?
Though this isn’t considered a part of day-to-day lingua, it is essential to be engrossed in your financial health. To get your credit report, visit the independent licensed credit bureau in your home country or visit your bank branch and have a talk with your official account manager. You are entitled to only one report per month. Although not everyone can see their credit scores in actual fact, it is important to know what and what is required to enable you to get one.
Conclusion
It is important to pay close attention to your credit report as it opens doors to great financial opportunities.
For more financial literacy and educational content, visit our blog on the Monosend official website, and do not forget to join the waitlist to get first-hand information when we launch.
