Is Your New Zealand Credit Score Good, Bad, or Normal?

A young couple talking to a woman, approved for a loan thanks to their great credit rating

12 Jun Is Your New Zealand Credit Score Good, Bad, or Normal?

Congratulations, you’ve received your credit report! Checking your credit score periodically is a cornerstone of fiscal responsibility. You want to keep an eye on your credit report to spot potential errors should they appear, take steps to improve it if necessary, and plan accordingly for any upcoming credit applications.

However, simply requesting your credit report does you little good if you don’t know what you’re looking at. Is your credit score average? Above average? At what point do you need to worry about your credit score preventing you from getting approved for a loan? Credit scores fall within a range of 0 to 1,000, but New Zealand credit scores are valued a little differently than credit scores in other countries. Read on to find out where your credit rating puts you.

What counts as a bad credit score?

You might have guessed that a credit score of zero is bad. The lower the credit score, the worse it is. In New Zealand, a credit score between 0 and 400 is cause for alarm. In most cases, people with such credit ratings this low likely have some significant credit problems in their recent history (up to five years). Defaults, bankruptcies, and visits from collection agencies are often the most damaging culprits of a score under 300.

If you are surprised to find your credit score this low, however, the problem may be that inaccurate information has made its way into your credit rating.

Climbing out of a credit hole this deep won’t happen overnight. Often, the best thing you can do is practice responsible spending habits patiently until the default and collections come out of your credit history after five years, or seven years for bankruptcies. Another wise thing to do is to continue to use your credit wisely to offset some of the negative information in your report. Make regular, small purchases with your credit card and immediately pay them off. You can even take out bad credit loans to help pay off your defaults and give your credit score a boost.

Ultimately, doing nothing means that negative credit information will dominate your credit history. It also means you won’t risk further credit problems and that – eventually – the slate will be wiped clean.

What counts as a normal credit score?

Credit ratings between 400 and 600 are normal for New Zealanders but that doesn’t mean that your score will sit well with lenders. Scores below 500 may still be bugged by missed bills or late credit payments. A score in this middle range still leaves room for improvement, and smart spending and borrowing habits can lift you into a more vaulted credit status.

What counts as a great credit score?

Scores about 600 are very good. At this point, there is little to no negative information in your credit history and the only difference between a very good credit score and a great one is the amount of positive credit history you’ve accumulated. Scores in this region are less common and make for very likely a rapid approval of any credit, personal loan, or home loan application you might make going forward. Keep up the good work!

Give your credit score a boost


The best way to boost your credit rating is to demonstrate responsible borrowing habits. Max Loans works with borrowers throughout New Zealand to build strong credit scores while getting the cash they need, when they need it. Contact Max Loans today to build a better credit future!

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