Nigerian households are grappling with rising costs of living. Inflation rates have significantly
impacted everyday expenses, and education is no exception. School fees continue to climb,
placing immense pressure on parents. In this context, access to credit isn’t a luxury; it’s often a
necessity!
Myths about Credits in Nigeria
It’s true that credit carries a lot of misconceptions, especially within the Nigerian context. These
misconceptions often prevent people from accessing valuable financial tools that can improve
their standard of living. Here are some common misconceptions:

1. Credit is inherently “bad” or “evil”:
   Reality: Many view credit as synonymous with debt, associating it with financial ruin. However,
   credit is a financial tool that, when used responsibly, can be incredibly beneficial. It allows
   individuals to access resources they might not have immediately available, enabling
   investments in education, business, or essential needs.
2. Only “rich” people need credit:
   Reality: Credit is valuable for individuals across all income levels. It can help bridge financial
   gaps, manage unexpected expenses, and build a financial safety net. For many Nigerians,
   especially those in the middle and lower income brackets, credit can be the difference between
   seizing an opportunity and missing out.
3. Taking credit means you are financially irresponsible:
   Reality: Responsible credit use is a sign of financial sophistication and awareness. It
   demonstrates an ability to manage finances, meet obligations, and plan for the future. Lenders
   and credit evaluators view individuals with good credit history as reliable and trustworthy.
4. Credit is only for emergencies:
   Reality: While credit can be crucial in emergencies, it can also be used for strategic
   investments. Investing in education, starting a business, or purchasing assets that appreciate in
   value can generate long-term financial benefits.
5. All credit facilities are predatory:
   Reality: While predatory lending practices exist, reputable financial institutions offer fair and
   transparent credit facilities. It’s essential to research lenders, understand loan terms, and
   choose reputable providers. At Edike Africa, we are working to change the narrative around
   credit, especially for education financing.
6. Credit scores are not important in Nigeria:
   Reality: Credit scoring is still evolving in Nigeria; however, it’s becoming increasingly relevant.
   Financial institutions are relying more on your credit scores to assess risk and determine your
   loan eligibility. Building a great credit score can enhance your access to financial opportunities.
   The Pros and Cons of Credit Facilities:
   Using a school fees financing solution, which inherently involves accessing credit, presents both
   benefits and disadvantages for you. Here’s a breakdown:
   Benefits:
   ● Ensuring Educational Continuity: The most significant benefit is preventing disruptions in
   your child’s education due to temporary financial constraints. This allows your child to
   stay in school and maintain uninterrupted learning.
   ● Managing Cash Flow: For many parents, school fee payment is a large, one-time
   financial burden. But what happens when you can spread it out over time? You free up
   funds or other essential expenses, and your finances are more manageable.
   ● Access to Quality Education: You do not have to sacrifice quality education on the altar
   of affordability. While it is wise to not overstretch your means as a parent, you’d realise
   that many great schools are quite affordable when you’re not directly paying lump sums!
   ● Financial Flexibility: At Edike, we offer flexible repayment plans that allow you to choose
   a schedule that fits your budget.
   ● Opportunity to Build Credit: Timely repayment of school fees can contribute positively to
   your credit history, which can be beneficial for future financial endeavours such as
   relocation.
   ● Peace of Mind: Resumption periods would mean anxiety and financial overwhelm for
   many parents, even with their plans. Knowing that school fees are taken care of reduces
   stress and anxiety, allowing parents to focus on other aspects of their lives. Zero worries
   that your child will be sent home!
   Disadvantages:
   ● Interest and Fees: Like any credit facility, Edike’s school fees financing solution has a
   very affordable interest rate and zero hidden processing charges. Our interest rate is
   also single-digit! While some organisations may also have hidden terms and conditions,
   we always encourage parents to go through our terms and conditions before submitting
   an application and before accepting an offer.
   ● Debt Accumulation: This is only a challenge when parents struggle or fail to meet
   repayment obligations as at when due. We know life happens, but when it does, it’s
   important that parents (customers) communicate. Failure to repay can also lead to
   negative consequences, such as damage to credit scores, late fees, and potential legal
   action.
   ● Dependence on Credit: While we encourage credit, it may be financial suicide to overly
   rely on it for every one of your financial needs. This can lead to a cycle of debt.
   Important Considerations before applying for credit:
   ● Financial Literacy: Carefully evaluate their financial situation and understand the terms of
   the financing agreement before committing. Don’t make decisions on using or not using
   credits merely based on peer pressure or emotions.
   ● Reputable Providers: It’s crucial to choose a reputable and trustworthy financing
   provider, like Edike, that offers transparent terms and fair interest rates.
   ● Budgeting: Create a realistic budget to ensure you can comfortably meet repayment
   obligations. For easy repayment, you can access your account breakdown on the Edike
   App and use the ‘manual debit’ option when you want to repay before the due date or
   the ‘automatic debit’ for repayment to be made when due.
   Don’t Shy Away from Financing Opportunity:
   As parents, your children’s future is your priority. Don’t let fear or misconceptions about
   financing, especially school fees financing, prevent you from securing their education. With
   responsible planning and the right support, solutions like Edike’s can be powerful tools for
   empowerment.
   We understand the challenges you face. That’s why we’re committed to providing a flexible and
   accessible school fees financing solution. We’re here to partner with you on your journey to
   financial freedom and your child’s success.
   Your Credit Score: The Unsung Hero of Your Child’s Future (and
   Yours!) – A Nigerian Parent’s Guide
   As Nigerian parents, we understand the immense weight of providing for our children’s
   future. From securing quality education to ensuring their well-being, we juggle multiple
   responsibilities with unwavering dedication. But amidst the daily hustle, one crucial
   aspect of financial health often gets overlooked: our credit score.
   Yes, your credit score. That seemingly abstract number can significantly impact your
   ability to access crucial resources, especially when it comes to financing your child’s
   education. And in a nation where educational aspirations are high, nurturing a healthy
   credit score is more than just a good financial habit; it’s a strategic investment in your
   family’s future.
   Why Does Your Credit Score Matter?
   In Nigeria, as the financial landscape evolves, credit scoring is becoming increasingly
   relevant. While traditional lending practices may still prevail, formal financial institutions
   are relying more on credit scores to assess risk and determine loan eligibility.
   
   Here’s how a good credit score benefits you as a parent:
   ● Access to Financing:
   ○ Whether it’s school fees financing, a home loan, or a business loan to
   support your family, a good credit score increases your chances of
   approval.
   ○ With Edike, we strive to make education accessible, and a strong credit
   history can streamline your application process.
   ● Better Interest Rates:
   ○ A higher credit score often translates to lower interest rates on loans,
   saving you significant money over time.
   ○ This means you can allocate more funds towards your child’s education
   and other essential needs.
   ● Enhanced Financial Opportunities:
   ○ A good credit score opens doors to various financial products and
   services, such as credit cards, insurance, and investment opportunities.
   ○ This empowers you to build a strong financial foundation for your family.
   ● Future Prospects:
   ○ A good credit score can affect your ability to rent a home, get a job, or
   even get insurance.
   ○ This sets a good example for you children, and helps them understand the
   importance of financial responsibility.
   Building a Healthy Credit Score: Practical Tips for Nigerian Parents
   ● Pay Bills On Time:
   ○ Consistent and timely payments are the cornerstone of a good credit
   score.
   ○ Set reminders and automate bill payments to avoid late fees and negative
   marks.
   ● Manage Debt Wisely:
   ○ Avoid accumulating excessive debt and keep your credit utilization ratio
   low.
   ○ Prioritize paying down existing debts and avoid taking on new ones
   unnecessarily.
   ● Monitor Your Credit Report:
   ○ Regularly check your credit report for errors and discrepancies.
   ○ Address any issues promptly to ensure accurate information.
   ● Build a Credit History:
   ○ If you’re new to credit, consider starting with a small loan or credit card
   and using it responsibly.
   ○ Demonstrate a consistent pattern of responsible borrowing and
   repayment.
   Edike: Partnering in Your Financial Journey
   At Edike, we understand the financial challenges parents face in providing quality
   education for their children. That’s why we offer flexible school fees financing solutions
   to ease the burden.
   We also believe in empowering parents with financial literacy and promoting responsible
   financial habits. By nurturing a healthy credit score, you’re not only securing your child’s
   future but also building a strong financial legacy for your family.
   Let’s work together to unlock a brighter future for our children!

CreditScore #FinancialLiteracy #EducationFinance #NigerianParents #EdikeAfrica

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