Get ready to borrow
Check your credit score for freeIt’s helpful to know what’s on your credit record before applying for a home loan. Here’s the low-down on how to request one, and what to look for.
Get ready to borrow
What’s in my record?
A credit record includes the payment history for any loans and credit such as:
- Credit cards
- Home loans
- Car finance
- Hire purchases
Payment history for utilities including electricity, gas and phone accounts might also be listed on a credit record.
How do I check my own credit record and get my credit score?
It’s free to get a copy of your credit record from any of the three credit reporting companies in New Zealand (their links are below), but if you need the information quickly, you might have to pay for it.
What if my credit record is wrong?
If your record is wrong, it might stop you getting credit, so check it carefully for incorrect information such as:
- Credit accounts you never applied for
- Payment defaults you didn’t know about, or
- Credit enquiries you never approved.
You’re entitled to ask credit reporting companies to correct your information. Each company has their own procedure for doing this so have a look at their website for more details.
How does bankruptcy affect my ability to borrow?
Any insolvency procedure affects your credit rating and your ability to find a bank or other lender willing to lend you money. If you have joint assets, your partner might be impacted, and it may also limit your ability to find landlords who’ll rent to you.
Related Questions
What's an average credit score in New Zealand?
Most credit scores are between 500 - 900. Anything above 600 is considered 'good'.
What does my credit score need to be to get a home loan?
There are a number of scales used in the New Zealand market for credit scoring. They don't pre-determine if you can get a loan. Rather they provide a gauge as to past credit issues.
What if I have bad credit?
If you have at least a 20% deposit, possibly by including your KiwiSaver, there are now options for home loans with bank and specialist lenders if you have a below average credit score.
The good news is that accessing your KiwiSaver funds or a HomeStart Grant, as a deposit, does not rely on your credit score.
Does the number of enquiries on my credit check affect a lender approval?
When assessing your account conduct and credit history, a credit check may be performed. If you’re shopping around with different lenders, you may have more checks on your record. It is important that you can explain this to minimise the impact on your credit score upon assessment, if it’s lower than you expect.
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