Credit reports - How credit history and scores work

We’re getting identified more and more by our credit reports these days. When businesses decide whether to lend us money, for example, they look at our credit report and give it a score. Any past missed bills or mortgage repayments have a negative impact on our credit score and affect our ability to borrow or get credit. By understanding how credit ratings work and keeping an eye on ours, we can keep things sparkling and get the best borrowing terms and rates.

Who checks my credit history?

Lenders usually check your credit history whenever you apply for credit – whether it’s a mortgage, a personal loan, hire purchase, car finance or a new credit card. Phone and power companies may also check your credit rating if you apply for those services on credit. A prospective landlord or insurer might check your credit history. Some employers even make credit checks on job applicants.

They do this 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.

Something to keep in mind is that having lots of checks run on your credit history can make it look like you’re taking on a lot of debt. For example, say 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’s on my credit report?

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.

A 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.

Bill repayments

The more repayments you make on time, the cleaner your credit report will be.

If you’re considering being a guarantor on someone else’s loan, your own credit rating could be affected if they miss payments.

Unpaid fines

Unpaid court fines or unpaid reparations are not recorded on a credit report, but they may be included when a credit check is done. So unpaid fines may affect your ability to get credit. Find out more at the website

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 the lender know as soon as possible. They may be able to work out a new repayment plan. 

Before things get too serious – debt management advice is available from financial capability services. Reach out to the team at MoneyTalks on 0800 345 123, or text 4029. You can even use this service anonymously if you prefer.

If the repayments are for goods bought on hire purchase or using a credit sales agreement, find out about more options on the Consumer Protection website.

More serious trouble

When debts get more serious, options include:

  • Applying for a Summary Instalment Order which allows you to repay debts in regular instalments without the threat of legal action (provided the unsecured debts total less than $40,000).
  • Applying for a No Asset Procedure (NAP) if you have no means of repaying any amount towards your debts.

Or, as an absolute last resort, there may be the option of filing for bankruptcy.

For more information, visit the Insolvency and Trustee Service website.

The Consumer site also has helpful information.

Identity fraud

Identity theft occurs when someone applies for credit using another person’s name and then deliberately defaults on payments.

Here’s what to do if that happens:

  • Ask all the credit reporters to freeze (suppress) the credit report and place a fraud alert on it.
  • Notify the police and IDCare.

For more information about identity theft, see:

  • Department of Internal Affairs identity theft website for examples and a checklist to use in case of suspected identity compromise


Don’t know where to start?

Check out our 6 steps Get Sorted program to get you on track.

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