Having a good credit score can help you in many ways – including reducing the cost of your bills or giving you access to more cost-effective interest rates.
But as important as a good credit score can be, we often tend to put it in the ‘too hard basket,’ or simply don’t know how to check it and what to do with it. So here we look at some key steps you can take to stay on top of your credit score and, most importantly, make it work for your goals.
If you’d like to give your credit score a healthy boost, understanding your rating is a good place to start.
You can request a copy of your credit report to any (or all) of the three credit reporting agencies in New Zealand:
Equifax
illion
Centrix
Keep in mind that, depending on the agencies you choose, your credit score will be a number between 0 and 1,000 (illion and Equifax) or 0 and 1,500 (Centrix).
One of the key things to know about credit scores is this: they go up and down based on many factors, including your payment history. Just to give you a couple of examples, paying your bills on time can help your credit score stay higher, while applying too often for finance can have a negative impact.
So what’s affecting your credit score? Your Credit Report has the answer. It includes details of your debts, defaults and balances, and can give you a better understanding of what’s happening to your score and why. Then, you can create your ‘action plan.’
Do you have any unpaid defaults, for example? It’s a common issue, and being proactive about it can really help. Make sure you contact your provider to make them aware of the situation: they will be happy to work with you on a possible strategy.
Being proactive is important for late payments, too. If you often feel that you are playing catch-up and missing out due dates, it’s a good idea to give your payment behaviour some thought. For example, setting up automatic payments is one of the easiest ways to stay on track, but take the time to understand what works best for you.
With a bit of focus and planning, you can make your credit score work for you. And remember, your credit score is not a still snapshot; it changes as your circumstances change. By following its fluctuations over time, you can take action more quickly, and make sure that your rating is ready for your short and long-term goals.
Like to know more? Click the links below for additional information on credit scores:
Equifax
Centrix
Sorted
Disclaimer: Please note that the content provided in this article is intended as an overview and as general information only. While care is taken to ensure the content is correct, the information provided is subject to continuous change. Please use your discretion and seek independent guidance before making any decisions based on the information provided in this article.
IMPORTANT INFORMATION
*Fixed interest rates for vehicle and personal loans range from 9.95% p.a. to a maximum of 29.95% p.a. on a minimum 12 month to a maximum 60-month loan term. The actual interest rate charged to you will depend on your circumstances, the type of lending required, the security provided, and is determined by the lender.
Fees apply, including an establishment fee of up to $450 and an introducer fee of up to $995. Also, lenders may charge a PPSR fee of between $0 and $14. For example: On a loan of $5,000 over 12 months at 10.95% p.a. with Establishment and Introducer fees totalling $495 and a PPSR Fee of $7.39, the total amount to repay is $5,835.93 which is 12 monthly payments of $486.34. Those amounts don’t include ongoing fees, such as Service Fees, charged by the lender. You can find full fee information in the loan contract. We recommend that you check the fees before accepting the loan offer.
Approval is subject to meeting lending criteria, and affordability test applies. Our lender will independently assess whether you are eligible for a loan.
One hour application decision subject to affordability test, the applicant meeting the lending criteria and supplying all the required information to process the loan application.
Same day payout subject to the applicant meeting the above conditions and completing loan documentation by 12pm.