07 MAY 2019
How to Check Your NZ Credit Report & Improve Your Credit Score
At the core of lending lies the mythical credit score. But what is it, really? You may not be familiar with your credit score, but the rates on your unsecured express loan will still be affected by it.
We’ve already addressed common myths surrounding bad credit in a previous blog post, so let’s look now at how to check your credit report and how to improve your credit score if you find it’s too low.
What is a credit score?
A credit score is a numerical value between 0 to 1,000 assigned based on the quality of your credit history. It includes information about your past payments for credit cards, mortgages, car finances, hire purchases, and other loans. Your credit score is designed to reflect your level of “creditworthiness” (your ability to pay back debt) for potential lenders.
How to check your New Zealand credit score
You can request your credit report for free at least once per year from each of the three credit agencies that process credit reports in New Zealand. Simply request your credit report online and allow for a few working days while your credit report is processed. If you need it more quickly, you will have to pay a small fee.
Credit agencies that process credit reports in New Zealand
There isn’t much you can directly do with your credit report. Your credit score will be of more use to lenders as they assess your creditworthiness. However, checking your credit report regularly will let you catch and correct any errors or discrepancies you may notice. You are legally entitled to submit corrections to your credit report at any time, and credit agencies are required by law to investigate all requests. Catching errors could help you considerably the next time you apply for a loan.
How to improve your credit score
- Avoid multiple credit applications – Applying for too many lines of credit at once can alarm credit reporters, who see it as a sign of desperation. Secured loans, such as a simple pawn loan, are not reflected in your credit report, so you could consider these if you need a small loan before you’ve improved your credit score.
- Dispute errors in your credit report – Don’t suffer for credit sins you didn’t commit! Check your credit report regularly and dispute any errors. It’s free and easy, and you’ll be much better off.
- Keep your credit balances at a minimum – Living beneath the shadow of constant credit card debt sends the message that you are not on top of your finances. Pay your debts down and try to keep your account balances as low as possible. If you do make substantial payments on a credit card, pay it down as quickly as possible.
- Pay your bills on time – This one seems obvious, but it’s often the most difficult thing to do. Paying your debts on time is the best way to bolster your creditworthiness in the long run.
- Remain credit active – You can’t have debt if you have no lines of credit open, but that means you won’t have much of a credit score, either. Staying credit active demonstrates that you can be trusted to manage your credit responsibly.
Master your credit with the right loan
A bad credit loan from Superloans is another tried-and-true method to inject some positivity into your credit report. We can work with you to ensure you get the best rates and a payment plan that empowers you to demonstrate excellent creditworthiness the next time your credit report proves necessary. Don’t wait. Contact Superloans today!