How to improve your credit score in Ghana


Is it possible to get a loan without your lender checking your credit score? The answer is ‘NO.’ You could need a debt consolidation loan, travel loan, business loan, etc. But you can’t get any of those loans without the lender checking your credit score. This shows how important your credit score is to the lender of any form of credit. Your credit score helps your lender to decide whether to give you the loan. You can improve your credit score and the sooner you do it, the faster it will go up. Meaning of a credit score, how to improve your credit score, and so on are all-inclusive in this article.

What is a credit score?

The credit bureaus collect information relating to the credit ratings of individuals. Then they use the information they collect to create a credit score for each individual. 

A credit score is a three-digit number, which helps lenders make loan decisions. It helps them know how likely they’ll get back the loan they give you on time. A credit score is a very important factor in your financial life. A higher credit score can enable you to qualify for loans and credit cards with more favorable terms. And this will definitely save you money. The credit bureaus calculate the credit scores of borrowers. 

Note: There is no particular algorithm that all lenders or other financial companies used to compute the scores. However, some credit scoring models are very common, such as; the FICO Score, which ranges from 300 to 850.

What are the factors credit bureaus used to calculate my credit score?

In order to know how you can improve your credit score. You should know the factors that credit bureaus use to calculate it. Therefore, if you play in line with the demands of those factors. You will be on the right path to improving your credit score.

The following are the factors credit bureaus use to calculate credit score:

  1. Your credit payment history
  2. The current debts you have
  3. Time length of your credit history
  4. The credit type mix
  5. How often you make applications for new credit.

How can I improve my credit score?

Having seen the factors credit bureaus use to calculate your credit score. You can now see how you can improve your credit score.

The following is how you can improve your credit score:

  1. Avoid applying for too much new credit

If you apply for too much new credit, it will cause multiple inquiries on your credit score. And this will reduce your credit score.

Your credit limit can increase by opening a new credit card. But applying for credit creates a hard inquiry on your credit report. This is because lenders would always want to know if you can repay the loans they will give you. And ultimately, many hard inquiries can affect your credit score negatively. You can actually improve your credit score. But a hard inquiry on your credit score will remain on your credit report for 2 years.

  1. You can dispute any inaccuracy on your credit reports

To be on the safer side, ensure you check your credit reports to spot inaccuracies. This is because there could be an error from the credit bureau that can affect your credit score. Once you spot an error in your credit report. Dispute it right away and ensure that the credit bureau corrects it immediately. Therefore, monitor your credit report regularly. It will help you spot inaccuracies before they can do damage to your credit score.

  1. Do not close unused credit cards

It is better to keep your unused credit cards open than closing them. This is because you’ll not lose anything if you keep it open without it costing you annual fees. However, if you close them, it will increase your credit utilization ratio. 

  1. Only open new credit accounts that you need

Unnecessary credit will most likely harm your credit score in so many ways. This is because it opens doors for so many hard inquiries on your credit report. Again, it can tempt you to overspend and incur debts.

  1. Pay your bills promptly

Lenders are always looking out for borrowers who pay their debts promptly. If you could switch positions with lenders. Would you lend your money to borrowers who do not repay their debts? The answer is ‘No.’ Therefore, prompt repayments of debts ultimately increase your chances of getting credit. This is because the history of your payment will help them predict your future payment.

However, you can influence your credit score by clearing all your debts on time. Especially just as you and the lender agreed. To be on the safer side, ensure you pay all other bills. Bills such as; rent, utilities, phone bill, electricity bill, etc. But if you can’t pay on time, it will keep affecting your credit score.


A good credit score makes access to loans a lot easier for you. With it, you can easily qualify for the best interest rates and terms of loans from lenders. Besides that, it can also influence how much you pay for life insurance. However, some landlords would also consider your credit score before they can let you in. It is essential to ensure that your credit score is in an excellent condition, bearing in mind all these benefits.

Other related articles:

Loan requests and how it affects your credit score

Type of loans in Ghana you should know

Government programmes for agric loans in Ghana

Categories: Reviews