Think You’ve Got Bad Credit? Read This.

October 28, 2019

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We get a lot of people coming to us applying for loans, convinced that they have a bad credit rating.

However, many of these people don’t actually know the truth about their credit rating — or their rights when it comes to checking and correcting it.

So before you go assuming you have a bad credit rating — and therefore need to settle for something like a payday loan when better options may be available to you…

Read this post!

What exactly is your credit rating?

Your ‘credit rating’ is your entire history of financial decisions.

Every time you apply for a loan, a mobile or internet plan, mortgage or credit card, for example, the provider has to check whether or not your history demonstrates you will be able to afford the repayments.

Every time you apply for a financial product or service, the details of that application enter your credit report.

Learn more about how to improve your credit rating.

However, your credit rating is only as good as the information New Zealand’s ratings agencies receive about your financial behavior. 

You have the power to fix any mistakes in your credit rating

Unfortunately, sometimes the reality is that credit ratings agencies record incorrect information about you.

For example, if you bought a car that the previous owner owed money on, and that debt became your debt (on paper), this could dramatically change your credit rating.

The good news is that you have the right to make corrections to your credit rating — and it is easy to do so. 

You can request your own credit report at any time and make corrections via the reporting agency you deal with. 

It makes sense to ensure your credit rating is accurate and not carrying any incorrect financial information about you BEFORE you apply for a loan. 

Don’t just assume you have bad credit

Jumping to conclusions about your credit rating before knowing the facts could lead you to accept a less-than-ideal loan.

Checking your credit rating — and making corrections to it — is both free and easy. 

We encourage you to do so before applying for any loan, because your credit rating impacts:

  • Whether your application gets approved or rejected
  • The limit on how much you can borrow
  • The interest rate on any loan you get approved for

If you have any questions don’t hesitate to get in touch with us on 0800 461 228 — or email us directly at [email protected].