Paying off a loan is a huge achievement. Many Nigerians expect that once they clear their debt, their credit score will rise immediately. However, this is not always the case. The reality is that credit scoring goes beyond just repayment.
At PebbleScore, we’ve seen many users ask the same question: “I paid off my loan, why hasn’t my credit score improved?” The answer lies in how credit scores are calculated.
Why credit scores may not rise after repayment
Credit bureaus in Nigeria look at several factors when calculating your score. Repayment is one of them, but it is not the only one. Here are some reasons your score may remain unchanged:
- Old repayment history still matters.
If you missed payments in the past, those records remain on your credit report for a while. Even if you have repaid everything now, lenders still see the missed or delayed payments. - Credit mix and history length count.
A score improves when you manage different types of credit, like loans, credit cards, or overdrafts, over time. Simply paying off one loan may not show lenders enough variety or length of credit use. - Frequent loan applications lower your score.
Each time you apply for credit, lenders make an inquiry into your record. Too many applications suggest risk, which can keep your score from rising even after repayment. - Closed accounts reduce active credit.
When you pay off and close a loan, you actually reduce the number of active accounts showing responsible use. This can sometimes keep your score flat in the short term.
The emotional side of credit scores
It is normal to feel frustrated when your efforts don’t reflect immediately. Many people wonder if their repayment was pointless. But the truth is, every repayment helps, even if the score takes time to show it. Think of your credit history as a long-term story. Clearing loans is one important chapter, but lenders want to see consistency across several chapters.
How to truly boost your score after repayment
If you want your credit score to move in the right direction, here are steps you can take:
- Monitor your report regularly. This helps you see if old issues are still weighing you down. Here’s how to read your credit report.
- Avoid unnecessary loan applications. Space them out so your score has time to recover.
- Keep accounts active where possible. Showing responsible use over time builds trust.
- Focus on on-time payments. Even small bills like utilities can affect your report if left unpaid. See how small debts affect scores.
Why PebbleScore makes this easier
At PebbleScore, we simplify your reports from all Nigerian credit bureaus. Instead of struggling with complex terms, you see clear insights about what is holding your score back. We also use AI to help you take specific steps to repair your credit.
Final thoughts
Paying off loans is always a positive step, but it may not give your credit score an instant lift. Patience and consistency matter. By monitoring your reports and making smart financial moves, you can rebuild your credit history and secure better opportunities in the future.
PebbleScore is here to guide you through that journey and simplifying credit repair, empowering your choices, and helping you unlock financial freedom.