Small Steps: Check Your Credit Score
Most New Zealanders don’t think about their credit score until they’re applying for a mortgage, car loan or even a mobile phone contract. But your credit history plays a big role in how lenders and service providers assess you. This month’s Small Steps is about getting ahead by checking your credit score—before you need it.
Why Your Credit Score Matters
Your credit score is a number that summarises your creditworthiness based on your borrowing history. It’s used by banks, lenders, and even utility providers to determine how likely you are to meet your financial commitments. A higher score can help you get better interest rates, higher lending limits, or a smoother path to approval.
But here’s the catch: your score might not reflect your current situation. Old debts, incorrect information, or even identity fraud can bring your score down—often without you even knowing.
It’s Free (and Easy) to Check
In New Zealand, there are three main credit reporting agencies: Centrix, Equifax, and illion. All of them offer free access to your credit report:
Centrix: centrix.co.nz
Equifax: mycreditfile.co.nz
illion: checkyourcredit.co.nz
You’ll need a few basic details like your ID and proof of address. Once you request it, your report is usually emailed to you within a few days.
What to Look For
When reviewing your report, pay close attention to:
Open and closed credit accounts – Are they correct and up to date?
Payment defaults – Are there any overdue payments recorded that shouldn’t be there?
Hard inquiries – Have there been any recent applications for credit you don’t recognise?
Personal details – Is your name, address, and date of birth recorded correctly?
If you find anything that’s inaccurate or out of date, each agency provides a simple process to dispute and correct the error.
How to Improve Your Credit Score
If your score isn’t where you want it to be, don’t panic. Small changes can lead to big improvements over time:
Pay bills on time – Consistently paying power, internet, and phone bills helps build positive history.
Clear overdue debts – If you have any lingering unpaid accounts, settling them can improve your score.
Limit new credit applications – Too many inquiries in a short time can affect your score.
Keep credit cards manageable – Lowering your limits or paying off balances can improve your affordability to lenders.
Stay One Step Ahead
Think of your credit score like a financial CV—it’s better to tidy it up before you’re applying for that next big life step. Whether you’re planning to buy a home, finance a car, or start a new job (yes, some employers check credit too), knowing where you stand gives you control.
Checking your credit score is a small step that could make a big difference.
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