Missing a loan repayment in Nigeria is stressful. Whether your business took a hit or a medical emergency wiped out your savings, defaulting on a loan can damage your credit score, making it difficult to borrow again.
However, a bad credit score is not a life sentence. With discipline and the right strategy, you can rebuild your reputation with lenders like Regent MFB.
1. Stop Hiding from the Lender The worst thing you can do when you miss a payment is to ignore phone calls and messages. Lenders prefer communication. If you know you will default, contact the bank immediately. Explain the situation and ask for a loan restructuring. They may extend your tenure to reduce your monthly repayment amount.
2. Clear the Small Debts First If you owe money to multiple apps or banks, use the “Debt Snowball” method. Focus all your extra cash on paying off the smallest loan first while making minimum payments on the others. Once the small one is cleared, your credit profile registers a “closed and settled” account, which immediately boosts your score.
3. The “Credit Rebuilder” Strategy Once your old debts are settled, your score will still be low. To fix it, you need to prove you are trustworthy again. Take a very small, short-term loan that you don’t actually need (e.g., a ₦20,000 salary advance). Keep the money safe, and pay the loan back exactly on the due date. Doing this two or three times forces positive data into your credit file.
