Credit Score Guide: Check and Improve Your Rating
Quick Guide:
- Check your score for free
- Understand what affects your score
- Learn how to improve your rating
- Monitor your credit report
How to Check Your Credit Score
In New Zealand, you can check your credit score for free through several credit reporting agencies:
- Centrix (www.centrix.co.nz)
- Equifax (www.equifax.co.nz)
- illion (www.illion.co.nz)
What You'll Need
- Valid ID (passport or driver's license)
- Proof of address
- Previous addresses (last 3 years)
Understanding Your Credit Score
What Helps Your Score
- Paying bills on time
- Low credit utilization
- Long credit history
- Mix of credit types
What Hurts Your Score
- Late payments
- Defaults
- Multiple credit applications
- High credit card balances
How Credit Cards Affect Your Score
Credit cards can significantly impact your credit score in several ways:
- Payment history (35% of score)
- Credit utilization (30% of score)
- Length of credit history (15% of score)
- New credit applications (10% of score)
- Credit mix (10% of score)
Tips to Improve Your Credit Score
1. Pay Bills on Time
Set up automatic payments to ensure you never miss a due date.
2. Keep Credit Utilization Low
Try to use less than 30% of your available credit limit.
3. Limit Credit Applications
Multiple applications in a short time can lower your score.
4. Check Your Credit Report
Review regularly for errors and dispute any inaccuracies.
Common Questions
How often should I check my credit score?
Check your credit score at least once a year, or before applying for major credit.
How long do negative marks stay on my credit report?
Most negative information stays on your credit report for 5 years in New Zealand.
Can I improve my score quickly?
While some actions can have immediate effects, building a good credit score typically takes time and consistent good habits.