Does your credit score matter? Well, yes and no…
There is some misconception about how New Zealand’s credit scores work compared to the rest of the world. A common misconception is that you have to get something on credit to get a credit score, like getting a credit card or personal loan. This doesn’t necessarily strengthen your score, in fact, every time you are credit-checked, this can impact your score adversely. So, getting that credit card doesn’t necessarily make it better.
A credit check will normally show any other loans or credit facilities you have in place. It will also show if you have had defaults in recent years. Both of these things can impact your ability to borrow.
Banks do credit checks to see if you are paying your bills on time with your other creditors and therefore that you are a good credit risk and “safe” to lend to.
As advisors, we work with you to find the right lenders first time, to limit the number of checks where possible, and to also place you with the best bank.
In a situation where you do have adverse credit history and a bank won’t lend you, we can find alternative lenders who will lend to you or make a long term plan for when you are once again an acceptable credit risk.
Grant Stephens
Mortgage Adviser
Personalised Mortgages
