Your CRC score is an important factor that lenders look at while evaluating a loan application. Hence it’s important to understand how the score is calculated. While there is a proprietary algorithm that determines your CRC score, the most important elements of the score composition are based on an individual’s loan payment behavior.
Let’s take a look at what exactly the CRC score is, and how it is calculated.
What is the CRC score?
CRC score – otherwise known as a consumer credit report or credit score, is a 3 digit number that shows a prospective lender, the risk associated with a prospective borrower. It shows the probability of you paying back or not.
The good news is that you can also request for your Credit Score as well.
You can request for your CRC Score on the CRC Mobile app for just N400 only. Click on the link in bio to download the CRC Mobile app today.
How Does the Credit Score Work?
The lower your credit score, the lower it is for the riskier it is for lenders to trust you with their money. As mentioned earlier, your credit score is a 3-digit number. The lowest number you can possibly have is 300 while the highest you can have is 850.

Below is the standard measuring range for credit scores:
- 300 – 599 = Very Bad
- 600 – 649 = Poor
- 650 – 699 = Fair
- 700 – 749 = Good
- 750 – 799 = Very Good
- 800 – above = Excellent
How is CRC Credit Score Calculated?

There are five key factors that impact your CRC score:
Length of Your Credit History
If you’re like most adults and have a credit history, you may want to know what factors into how a credit scoring formula considers your length of credit.
With long history of credit, you get a better score and lower interest rate on credit.
You see, the length of your credit history accounts for 15% of your score.
Payment History
The payment history of an individual is a very important factor when it comes to considering a loan for that particular person. Late payments or defaulting can add up to a negative impact on the score and affect your ability to get approval for a loan in the future.
This should ideally be 35%
Credit Mix
When it comes to credit, having a good mix of unsecured loans and secured loans is something worth trying to achieve. This will provide your credit score with a balanced mix which is going to have a positive impact.
The rate for this stands at over 10%.
Pursuing New Credit
Opening a new credit account will impact the rest of your credit history. The rate for this is over 10%.
This means that you should be extremely careful when opening a new credit account because you don’t want to burden your current credit score.
However, you also need to consider what it’s like with no lines of credit at all. Can you really afford not to open a credit card? It’s up to you. I can provide you with the benefits and drawbacks of each decision.
There are some very important factors that you need to consider when choosing the credit card company. This includes the amount owed, the number of accounts with balance, and the available credit.
The rate for this is pegged at over 30%
How can you work towards a high CRC score?
1. Auto-payments can lessen the likelihood of having a negative outcome in your credit score. If you do not incur any late payment or fee to your lender, you can boost your payment history, which is the most important in your credit scoring.
2. The credit utilization ratio is what credit cards use to judge your credit risk. When you apply for a loan or credit card, the lenders assess whether you can service that loan based on the information available to them about your current and previously held loans.
If you rack up a lot of debt on credit cards, you will have a much harder time accumulating a high credit score. Why? Because, as we’ve noted, your credit utilization ratio affects your score greatly.
3. Your credit score has a lot of contributing factors like payment history, amount of debt, length of history, etc. To keep your credit score at its best I recommend that you limit applying for new lines for credit (credit inquiries). Doing this will keep your credit score with a stable number of inquiries.
4. Credit mix is an important aspect of determining how your credit score is calculated, and that is where implementing a “strategic” approach to adding different types of credit can be advantageous to improving your score.
Before you go crazy adding credit, please note that you should only be adding what you can afford. And if you are looking to improve your credit score.
5. Your credit report will come in handy when applying for credit. You want it to be as accurate as possible, which is why you should regularly check your report to make sure there are no errors.
If you want to find out how many loans you can apply for based on your credit score, you can use a credit card checking tool.
6. Be patient. Building a good credit score takes time! If you’ve never had one before, or if your history also includes any unfortunate mistakes (like missing a credit card payment, or not making mortgage payments), it can take a while to build.
7. The most precious thing in the world is to build a good credit score. Since you can’t do much about your scores right now, you need to take the next best action. You might not have done it by yourself, but it is high time that you approach lenders to restructure existing loans.
Once you dealt with credit repair, you begin work on improving your credit score. In discharging the responsibilities of paying bills promptly and using your card responsibly, you will sooner or later see that your credit score is improving, and so long as you keep it up, it will continue to climb
Why do lenders check your CRC score before approving your loan?
Everybody wants a high credit score, and most especially the lenders. You see, the thing about lending money is that you’ll have to be repaid at some point in time or another. Lenders are required to look at several factors when deciding whether they should give a loan or not. They are:
- To check your credit history and past record
- To see whether you are capable of repaying debts
- To review your credit balance and understand the risk level of your profile
- To judge whether you qualify for the loan
- To decide on the loan amount to offer you and interest rate applicable
What are the factors that affect your CRC score?
Now, we all know that a high credit score is crucial to getting a loan or a credit card in future. While it is easy to understand why our credit score matters and why it needs to be good, it’s important to know the factors that influence your credit score and how you can control them. Let’s explore this in detail below
- Your income
- Your existing debts
- Your past credit repayments
- Any defaults, delays, or lapses in previous credit repayment
- Rejections for loans that you have applied for
How does outstanding debt affect your credit score?
Credit is a necessary evil. Nobody likes to be in debt, but it is important to understand how it works. For example, the amount of outstanding debt you have impacts your credit score.
In fact, lenders normally check this by looking at the credit utilisation ratio . This refers to how much money you are using out of the total credit you have available.
Two reasons why outstanding debt spells bad news for your credit score
It maximises your credit utilisation ratio
A good credit utilisation ratio is 30% or lower A high ratio means you are using too much credit, which can reduce your credit score. If you are close to your limit, it’s best to pay off a lot of your debts before applying for a loan of any kind.
It makes repayment of future loans difficult:
It means that you might find it difficult to get those loans in the future when you will start earning better. In fact, the banks even ask you about the existing debt when you submit an application for another loan. What does it mean if you already have outstanding debts?
what is a good credit score to avail of a personal loan?
The minium credit score to avail of a personal loan is 700 or 750, depending on the lender. Having this credit score for a personal loan can boost your chances of getting the loan application approved.
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