What is included on your credit rating?

Have you ever checked to see what your credit rating looks like? Were you aware that you have a credit rating? Understanding your credit file enables you to make more informed decisions regarding your finances, so it’s worth having a look.

In April 2012, New Zealand introduced “comprehensive credit reporting” (CCR), which allows more detailed information to be included on your credit file. This is a boon for industry as it should lead to more prudent lending practices. For potential first home buyers who are perhaps slightly disorganized when it comes to financial management, though, it could make the process of getting a home loan more challenging. The information that can be recorded on your credit rating includes:

Consumer information

This consists of your identity details, any credit applications you have made in the last five years and any credit enquiries made on your file in the past five years. It also includes the types and amount of credit accounts you hold (for example, a credit card and a personal loan) and when those accounts were opened and closed. Your credit file can hold a 24 month repayment history.

Payment defaults

A payment default can be a bill which is overdue by more than 30 days and worth more than $100. This could be as simple as a missed telephone account or electricity payment. Once you pay the bill, the payment information is updated on your credit file ““ however a record of the default remains for five years.

Public record information

Public record information includes any bankruptcy or court judgments and any director or business ownership details.

Lost or stolen identification

Any identification that you have reported as lost or stolen will be listed on your credit file.

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