Hi guys,

Being someone who is a loan officer in a Micro finance bank, I have seen people lying to me and other sales persons about not owing another bank. Some will owe 5 different banks and tell you that they aren't owing. While trying to give you loan, we have to check your credit history to know if you have an existing loan or not and your bvn will assist us to get that within few minutes.

If you tell your loan officer that you have a loan elsewhere, then he/she will know how to factor it in or buy it over and check the exact amount you can get. If you don't, after wasting all the time and effort, you still won't get the loan because a wrong loan product has been created from the beginning.

A bad credit report is a loan history that shows overdue amount or credit a customer has with financial institutions. The disadvantages are:

1. You won't be able to get loan elsewhere.
2. Even after clearing it, banks won't want to trust you with their funds.
3. Time, and efforts will be wasted by both parties.
4. And while trying to relocate to another country, overdue loans can hinder you after
checking your credit history.

So even if its #10 that is remaining, try clearing it up because interest will still be calculated on it. And if you have accounts you're not using in commercial banks, please close it because they will still be charging the accounts to negative.