Credit scores have become commonplace in New Zealand lending over the last few years.
When you apply for a home loan either the mortgage adviser or bank will do a credit check, and as well as showing the enquires and any payment defaults the credit checks now all have a credit score.
Credit scores range from 0 – 1,000 and the higher the score the better risk you are deemed to be for lenders.
The credit score is made up from a range of information including your shopping pattern which includes the type, number and date of any credit inquires, your demographic stability (changes of address), the age of your credit file and your repayment history including any payment defaults, collections or judgements.
Some banks have adopted a minimum credit score into their lending policies and the general rule is they will not lend to people with a score below 300; however there are exceptions and some lenders that do not focus on credit scores as much.
