Your credit score is a number from 0 – 1,000 used to describe your credit history. It is a numerical expression of your full credit history and represents your creditworthiness as an individual.
Credit scores are a useful guide for credit providers (e.g. banks, utilities, telcos and other lenders) for assessing your credit, and also can help you determine how you stack up.
You can click here to get a free copy of your credit score from Nectar.
Credit scores take into consideration a number of factors including your length of credit history (how long you have operated credit accounts), payment history performance (how well you have maintained your due payments), types of credit (such as secured or unsecured), amount owed and if there are any defaults or insolvencies reported.
Credit scores are relatively new to New Zealand but have been used overseas for many years. Credit providers such as banks and finance providers as well as utilities (e.g. phone/electricity providers) often use credit scores to help determine whether to provide you credit, or an on-account plan.
Increasingly some providers use credit scores to help determine how much credit to provide you, and also what interest rate to charge you. This means the higher your credit score, the higher loan limits you can access, and the lower the interest rate.
In countries that have had credit score for some time people look after their credit scores, knowing that a poor credit score is going to cost them money, and may even prevent them from accessing overdrafts, mobile phone plans or even mortgages.
At Nectar, we think it important for you to know what your credit score is, and be able access helpful information about credit scores and how to improve them.
The Nectar Team