You do not need to apply for a loan to find out what lenders can see about you.
You can check your own credit report before you apply, and doing it yourself does not damage your credit score.
That is useful if you are planning to finance a car, apply for a personal loan or simply want to know whether anything unexpected is sitting on your file.
There are three main credit reporting agencies in New Zealand: Centrix, Equifax and Experian. Each can hold slightly different information, so checking more than one gives you a better picture of what a lender might see.
Here is how to do it.
What is a credit score?
Your credit score is a number calculated from information contained in your credit history.
It gives lenders an indication of how you have managed credit in the past and how risky you may be to lend to.
Information that can influence your credit profile includes:
- Whether you make repayments on time
- Missed or late payments
- Defaults
- Current loans and credit accounts
- Previous credit applications
- Court judgments or insolvency information
- How much credit you currently have
- Positive repayment history
Most consumer credit scores are expressed on a scale reaching 1,000, with higher scores generally representing a stronger credit profile.
Do not get too fixated on one exact number, though.
Different credit reporting agencies use different scoring models, and individual lenders also have their own approval criteria. A score that one lender is comfortable with does not guarantee another lender will approve the same application.
Where can you check your credit score in New Zealand?
There are three main places to start.
Centrix
Centrix is a New Zealand-owned credit bureau.
You can request a free personal credit report directly through its website.
Centrix provides a consumer credit score between 0 and 1,000 alongside the information held on your credit file.
If you provide a current New Zealand driver licence or passport, Centrix says requests can generally be processed quickly. Other forms of identification can take longer.
Equifax
Equifax is another major credit reporting agency used by lenders.
You are entitled to request your credit file free of charge. Equifax states that its standard free credit-file service is supplied within 10 business days.
It also offers other paid or faster services, but you do not need to pay simply to access the basic information held about you.
Experian
Experian also provides access to your personal credit report.
If you have seen Illion or Illion Credit Check mentioned in older articles, there has been a change. Illion Credit Check has moved to Experian CreditConnect, so Experian is now the consumer-facing service to use.
Experian says its credit report includes your credit history, active credit accounts and credit score.
Should you check all three credit reports?
It is worth doing.
Your Centrix, Equifax and Experian reports will not necessarily be identical.
Not every bank, finance company, utility provider or other organisation reports exactly the same information to every bureau.
That means an account or credit enquiry could appear on one report but not another.
If you are checking your credit because you are about to make an important application, such as a car loan or mortgage, looking at all three reduces the chance of being surprised by something you did not know was there.
Does checking your own credit score lower it?
No.
Requesting your own credit report does not damage your credit score.
This is different from making a formal application for credit.
When you apply directly for a loan, credit card or other finance, the lender may carry out a credit enquiry as part of assessing your application. Multiple formal applications within a short period can affect how your credit profile looks.
Simply checking your own report to see what is there does not have that effect.
So there is no reason to avoid checking because you are worried that looking at the number will make the number worse.
What do you need to check your credit report?
The credit bureau needs to confirm that you are actually the person whose information you are requesting.
You will normally need to provide personal details such as:
- Full legal name
- Date of birth
- Current address
- Previous addresses where required
- Email address
- Identification
A New Zealand driver licence or passport can make the identification process easier.
Follow the identity-verification requirements of the particular bureau rather than sending identification documents anywhere that has not been independently verified as legitimate.
What should you look for on your credit report?
Do not open the report, look at the score and close it again.
The information underneath the score matters.
Check your personal details first.
Then look through the credit accounts, repayment information and enquiries listed against you.
Pay particular attention to:
- Accounts you do not recognise
- Loans that should have been closed
- Incorrect missed payments
- Defaults you believe are wrong
- Duplicate accounts
- Credit enquiries you do not recognise
- Incorrect addresses or personal information
- Signs that someone may have applied for credit in your name
Your credit report can be one of the first places identity fraud becomes visible.
If there is an account on there that you have never heard of, investigate it.
What is considered a good credit score?
There is no single score that guarantees approval.
As a rough guide, Consumer Protection describes a score above 700 as good, while Centrix currently describes a score above 705 as good within its own scoring system.
But the score is only part of a loan application.
A lender can still decline someone with a strong credit score if the proposed repayments are unaffordable based on their income and expenses.
Likewise, someone without a perfect score may still qualify depending on the lender, loan type and rest of their financial position.
Lenders can also consider things such as:
- Income
- Employment stability
- Current expenses
- Existing debts
- Repayment history
- Amount being borrowed
- Loan purpose
- Security being offered
Think of your score as one part of the picture rather than a universal pass or fail number.
What if something on your credit report is wrong?
Challenge it.
An incorrect default or repayment record can affect how lenders assess you, so leaving an obvious error sitting on the report makes no sense.
Start by contacting the organisation that originally supplied the information and explain what you believe is incorrect.
Provide evidence where possible.
You can also raise the issue with the credit reporting agency.
If information is genuinely wrong, there is a process for having it investigated and corrected.
Consumer Protection also recommends checking your reports with the other credit agencies when you find an error, particularly if the same incorrect information may have been supplied to more than one bureau.
What if you find a loan or enquiry you never made?
Treat that differently from a simple typo.
An unfamiliar account or application could indicate identity fraud.
Contact the relevant credit bureau and financial provider promptly.
Credit reporting agencies can also place a suppression or freeze on your credit file in situations involving suspected fraud. This restricts access to the file and can make it harder for someone to continue applying for credit using your identity.
Check all three bureaus if you suspect your identity has been compromised.
When should you check your credit score?
Before you urgently need finance.
Checking your file the night before applying for a car loan does not leave much time to fix a mistake.
A better time is several weeks or months before a major application.
It is particularly useful to check:
- Before applying for a personal loan
- Before financing a vehicle
- Before applying for a mortgage
- After being unexpectedly declined for credit
- After correcting a previous default or error
- If you suspect identity theft
- Periodically even when you are not planning to borrow
Sorted recommends reviewing your credit report at least once a year.
That is a reasonable habit even if you rarely use credit.
Can you improve your credit score?
Usually, but there is no overnight fix.
Credit scores reflect your financial behaviour over time.
The fundamentals are fairly boring, which is exactly why they work:
- Pay bills and loan repayments on time
- Deal with overdue debts
- Avoid unnecessary credit applications
- Keep your credit information accurate
- Do not take on more debt than you can comfortably manage
- Give negative information time to become older
- Maintain a consistent positive repayment history
Be sceptical of anyone promising to remove accurate negative information simply because you pay them.
If the information is accurate and legally allowed to remain on your file, there is generally no legitimate shortcut that makes it disappear overnight.
Why check your credit before applying for a loan?
Because it removes guesswork.
If your report is clean and your score is strong, you know that before you approach a lender.
If there is a problem, you can investigate it before it becomes the reason for an unexpected decline or higher rate.
It also gives you a chance to question incorrect information before another company uses it to make a lending decision.
Knowing your credit position does not guarantee approval.
It does mean you are applying with your eyes open.
How Lending Room checks your credit
Lending Room is a registered loan broker, not a direct lender.
When you apply through us, we use a soft credit check during our initial assessment. Our check does not affect your credit score.
We then assess your application against the criteria of the multiple vetted lenders on our panel and match you to the lender most suited to your circumstances rather than submitting applications everywhere at once.
Once an application progresses to a lender, some lenders accept our initial assessment while others may carry out their own standard credit check as part of their approval process.
If you have checked your own credit report and want to understand what loan options may be available based on your current position, you can get in touch with Lending Room or read more about how our application process works.
Frequently asked questions
Can I check my credit score for free in New Zealand?
Yes. You can request your credit information directly from Centrix, Equifax and Experian without paying for a standard report. Faster or additional services may carry a fee depending on the provider.
Will checking my own credit score affect it?
No. Accessing your own credit report does not lower your credit score.
Which credit score does a lender see?
It depends on which credit reporting agency the lender uses and the lender’s own assessment process. Different bureaus can hold slightly different information and produce different scores.
Why is my credit score different between Centrix and Equifax?
Each credit bureau has its own data and scoring model. Not every credit provider reports the same information to every agency, so differences between your reports and scores are normal.
How often should I check my credit report?
Checking at least annually is sensible. It is also worth reviewing your reports before an important credit application or whenever you suspect incorrect information or identity fraud.
How long does it take to get a credit report?
It depends on the provider and identification used. Some reports can be processed quickly, while standard free requests can take several working days. Credit reporting agencies also have legal obligations around responding to requests for your information.
Can a good credit score guarantee I will get a loan?
No. A lender also assesses affordability, income, expenses, existing debts and its own credit criteria. A strong score can help your application but does not guarantee approval or a particular interest rate.
This article is for general information only and does not constitute financial advice. Lending Room is a registered financial services provider (FSP486566). We are a broker and do not lend directly. For vehicle and personal loans, rates range from 8.99% to 29.95% p.a. (AIR). Establishment fees up to $450 and broker fees up to $1,500 may apply. Your rate and approval are subject to lender credit criteria.