In New Zealand, credit scoring is becoming increasingly used as the primary method of assessing creditworthiness. Credit scoring is used not only to determine whether credit should be approved to an applicant, but for setting of credit limits on credit or store cards and other lines of credit.A credit score is a numerical expression based on a level of analysis of a person’s credit file, to represent the creditworthiness of an individual. A bureau credit score is primarily based on the credit report information and generally includes the following attributes:
Credit scores sometimes include other attributes but these are only used when there is a clear link between the attribute and an increase or decrease in credit risk.
Clearly the less adverse information of the individuals credit report the higher the likelihood of a low risk credit score. However if it appears the individual may be carrying too much credit or starting to show signs of distress, this may impact and lower the credit score even though the individual has not missed any of their obligations to date.
Credit providers such as banks, finance companies and utilities may use credit scores as part of their approval process and where one provider may accept an applicant at a particular score, another may decline them depending on their appetite for risk and margins. While some individuals may feel they did not deserve to be declined, the policy of applying credit scores ensures a more consistent and fairer approach across all applicants and generally means more applications are approved as the credit provider has a greater level of awareness of the risk they are taking on.
Centrix’s credit bureau score ranges from 0 (for the very high risk) to 1,000 (for the very low risk) and the scores are distributed across 5 bands as follows:
| Score Range | Traditional Risk Band Name | % Population | What it means for the consumer |
|---|---|---|---|
| >845 | Excellent | 20 | You should be eligible for the best credit cards, loans and utility services (but there are no guarantees) |
| 769 – 845 | Very Good | 20 | You should be eligible for most credit cards, loans and utility services |
| 650 – 768 | Average | 30 | You should be eligible for standard credit cards, loans and utility services offers |
| 495 – 649 | Fair | 20 | You might get credit cards, loans and utility services but these may have additional conditions |
| 495 | Poor | 10 | You’re more likely to be rejected for most credit card or loan facilities |
Got A Question In Relation To Your Credit File?
Below are some links to assist you. If you want to know what data we hold on you, provide us with your details click here
and we’ll get the information back to you as soon as possible via the delivery method you choose (post or email).
By the way, Centrix does not charge for providing you a copy of your credit file.
Contact Us!
0221018335 / info@creditreports.co.nz