Once you know your credit score (Get your free credit score here) and understand how it compares (Understanding your credit score), the next step is learning how to improve it. Here are some key actions you can take to boost your credit score effectively.
Before making any changes, ensure that your credit report is accurate. Errors on your report could be unfairly lowering your score.
✅ Get a free credit report from Centrix (Click here) and review it carefully.
❌ If you spot an error, contact Centrix to correct it.
🔄 Also, check with the other two credit bureaus in New Zealand—Illion and Equifax—to ensure they don’t have the same incorrect information.
Fixing errors can instantly improve your credit score, so this is a crucial first step!
An unpaid default (e.g., from a power or phone bill) can significantly hurt your credit score. If you have one:
💳 Pay it off as soon as possible.
💡 Even though the default remains on your file, settling it shows lenders that you take financial responsibility.
Late payments on utilities, overdrafts, credit cards, or loans can lower your score. The more overdue payments, the worse the impact.
📅 Priority #1: Pay overdue accounts.
🔄 Priority #2: Keep all accounts current by making payments on time.
If you consistently pay on time for say 12+ months, your score should improve—even if you’ve had past issues.
A lack of credit history can also result in a lower score. Credit bureaus reward responsible credit use, so:
✔️ Keep small, manageable credit accounts (e.g., a credit card, overdraft, or phone plan).
✔️ Always pay on time to show lenders that you’re reliable.
❌ Don’t take on unnecessary debt—only borrow what you can afford.
Credit bureaus consider how much debt you have and how often you take on new credit.
🚫 Avoid excessive borrowing.
💰 Keep your liabilities manageable based on your income.
📌 Compare lenders wisely—most only do a soft credit check when you apply, which won’t harm your score.
Owning property signals strong financial stability, which can positively impact your credit score.
🏡 If homeownership is in your future plans, saving for a deposit and maintaining a good credit history can help you improve your credit score and secure better loan terms.
Improving your credit score takes time, but by paying bills on time, managing debt wisely, and ensuring your credit report is error-free, you can steadily build a stronger credit profile.
📈 Want to know your credit score? [Check it for free here]
* Nectar Money offers competitive unsecured personal loan rates with fixed interest rates from 7.95% to 29.95% p.a., based on your credit profile. A $240 establishment fee and $1.75 administration fee per repayment apply. Strong Credit borrowers may qualify for low, competitive rates from 7.95% to 11.95% p.a.; Good Credit borrowers may qualify for rates from 14.95% to 22.95% p.a.; and Fair or Developing Credit borrowers may qualify for rates from 24.95% to 29.95% p.a. The broad range helps Nectar offer low interest rates to borrowers with excellent credit, while also providing loan options for more New Zealanders, including borrowers with fair or developing credit profiles. Learn more here.
All loans are subject to responsible lending checks and standard borrowing criteria. Please see our privacy policy and rates and terms, or visit our FAQs for the most up to date information. This publication is provided for general information purposes only and does not constitute legal, tax, financial, or other professional advice from Nectar Money. It is not intended as a substitute for obtaining advice from a financial adviser or any other qualified professional. We make no representations, warranties, or guarantees, whether express or implied, that the content in this publication is accurate, complete, or up to date.
