Feb Financial Health Check: Credit Rating
We are all about saving and lending at NZCU Employees. It’s why we have the products to benefit you, our valued customer.
Sometimes, however, we don’t realise what our credit score is, or what our credit history looks like. You want to borrow, but a negative credit history prevents you.
We have some information about credit reports from Sorted to help you out
While it’s true for NZCU Employees to work with you when you need us, we also need to look at your credit report. Why? Any past missed bills or mortgage repayments may have a negative impact on your credit score and affect your ability to borrow or get credit. By understanding how credit ratings work and how best to keep an eye on it, you can keep things on track, so we at NZCU Employees can keep offering you the best borrowing terms and rates.
Credit history – who can see it and how
We usually check your credit history whenever you apply for a loan, whether it’s for a mortgage or a personal loan. But so do phone and power companies if you apply for those services on credit. It can also include your prospective landlord or insurer and even some employers.
This is done by making an enquiry to a credit reporter – an organisation that collects credit information and sells reports on an individual’s credit history to businesses.
Having lots of checks run on your credit history can make it look like you’re taking on a lot of debt. For example, you’re shopping around for a car. You visit five dealers, who all take your licence and do a credit check. Having so many credit checks done in a short period of time can lead to lenders turning you down.
What are credit reports?
A credit report includes any payment defaults recorded against your name. A default is where a payment has been overdue for more than 30 days and the lender has taken steps to recover the outstanding amount.
That default can stay on your credit record for five years, even after you have paid the amount in full.
A credit file can also show how much you’ve borrowed and whether you are making regular repayments (such as credit card, hire purchase, car finance and mortgage repayments) on time. Payment of power and phone bills may also be included in your file. So, the more repayments you make on time, the cleaner your credit report is.
Who holds my credit details?
The following credit reporters operate in New Zealand:
To correct or freeze information on a credit report, make sure to contact all three.
How do I check my credit rating?
Everyone has a legal right to request information held about us by a credit reporter – at no cost.
It’s a good idea to regularly check your credit report, especially if you’re thinking about borrowing in the near future.
If you want the information quickly (within five working days) you may be required to pay a fee, but otherwise it’s free to check your credit rating.
To order a credit report, contact the credit reporters directly at the links above. Selecting the regular application option will take longer than an express service, but there’s no charge.
For a fee, some credit reporters, such as Equifax, will load a monitor on your credit file to alert you to applications for credit made using your identity.
Find out more about rights on the Privacy Commissioner’s website
Correcting wrong information
Spotted a mistake? Ask the credit reporter to correct it and they will sort it out.
Keeping a clean credit record
It’s important to make sure the credit information held in your name is correct, and to keep your record clean.
The more repayments you make on time, the cleaner your credit report will be. This is why it’s best if you’re going to have trouble making payments it’s best for you to talk to us sooner rather than defaulting.
Trouble paying debts?
If it gets hard to keep up with debt repayments, there are just two rules to remember:
- Try not to miss a repayment
- Let us or the lender know as soon as possible. So we can work out a new repayment plan with you.
If you need to talk about your personal loans with us contact us: https://nzcuemployees.co.nz/contact-us
Phone: (09) 579 0448
Fax: (09) 525 2458