myCreditScore Tackles Ghana’s 23% Default Rate : Data, Not Debt, Is Driving Smarter Lending

Thanks to predictive scoring models, lenders using myCreditScore are making better decisions. This helps thousands gain financial access while reducing risk.

### The National Problem: High Default Rates

The Bank of Ghana reports a 23% non-performing loan rate. This means nearly one in four loans go unpaid. These defaults cost banks billions annually. They also raise interest rates and limit credit access for responsible borrowers.

### The Smart Solution: Effective Predictive Credit Scoring

myCreditScore analyzed over 21,000 credit records, including 2,061 confirmed defaulters. They detected behavioral patterns and demographic risk factors. The findings were insightful and game-changing.

### Who Are the Typical Defaulters?

- Age: 62% of defaulters are aged 30–50.
- Occupation: Common jobs include traders and transport workers.
- Marital Status: Singles and divorced individuals have higher risks.
- Region: 67% of defaults occur in urban areas.
- Gender: Males are 1.4 times more likely to default.

### National Default Rate vs. myCreditScore Loans

Loans filtered through myCreditScore see up to 65% lower default rates than the national average.

### Why Do People Default?

Defaulting follows specific patterns:

- Micro-loan traps: 73% had loans under GHS 25,000.
- Income instability: 68% worked informally or seasonally.
- Over-leveraging: Average defaulters had over three loans.
- Short credit histories: 67% defaulted within six months of opening an account.

### How Does myCreditScore Work?

myCreditScore uses a real-time scoring system that considers:

- Age, occupation, location, marital status
- Social media presence and payment behavior
- Tiered risk categorization and credit limits
- Rewards for positive repayment behavior

### Predictive Scoring Benefits

| Risk Category | Estimated Default Rate |
|---------------|------------------------|
| High-risk | 60–80% likelihood |
| Medium-risk | 40–59% |
| Low-risk | <20% |

### Real Impact: Safer Lending and Inclusion

Projections show that myCreditScore-backed lenders can expect:

- A 25–30% reduction in defaults within six months
- Loan decisions made 40% faster
- Operational costs for small loans reduced by 50%
- A growing customer base built on trust

### A Path Forward for Smarter Lending

Ghana’s economic growth relies on accessible credit for small traders and young entrepreneurs. MyCreditScore shows that with the right data, default is not inevitable.

Lenders should take note to reduce risk while expanding credit access. The future of lending in Ghana is data-driven, with promising results already visible.

In Ghana, over 95% of transactions are debit-based. Smarter lending decisions today will strengthen our economy's credit systems for tomorrow.