Why You Should be Checking Your Credit Report
What’s in your credit report? If you don’t know, you should be finding out. Fortunately, you can check your credit information for free. If you need the information in a hurry, however, you’ll have to pay for a report.
Your credit report contains important financial information pertaining to your past repayment of debts. It assembles information from banks, collection agencies, credit card companies, government programs and other sources to create a portrait of your creditworthiness. Future lenders and credit agencies use these reports to determine your ability to repay potential future debts. Continue reading to learn more about requesting your credit report and why checking it regularly will help anyone seeking personal loans NZ wide.
How to Check Your Credit Report
Your credit information can affect how companies treat you, such as when applying for loans or insurance. You can prepare for your upcoming credit applications by requesting your credit report, so you’ll have a better idea what to expect. Credit reports are processed by three separate reporting agencies in New Zealand:
What’s included in your credit report?
Your credit report includes your payment history for:
- Car finances
- Credit cards
- Hire purchases
Your payment history for other bills like electricity, gas, and phone accounts might also appear in your report.
Could there be mistakes on your credit report?
In short, yes. Occasionally, inaccurate or incomplete information finds its way into your credit report. This could unnecessarily hurt your chances of getting approved for a personal loan or securing a lower interest rate.
Even if you do have bad credit history, you should check your credit report for incorrect information, such as:
- Credit applications you never made.
- Payment defaults you were unaware of.
- Credit enquiries that have not been approved.
Fortunately, it is possible to have information in your credit report corrected when necessary. Each of the three NZ reporting agencies have their own procedures to process requests for corrections.
How to Correct Your Credit Report
You have the right to seek corrections of credit information. Reporting agencies work with credit providers and others to assist you, so you should make necessary corrections before seeking new credit.
Almost all information on your credit report will age out of the report after five years (for example, defaults age out of your report after five years, missed repayments after two), so any inaccuracies you discover in yours should be fairly recent.
Each of New Zealand’s three reporting agencies issue their own unique reports, so an inaccuracy in one may not appear in the others. However, it’s wise to request your report from each of them to check for inaccuracies. You will typically be the only one who could spot an issue. You can request your credit report from each reporting agency for free once every year.
Each agency has their own process for processing disputes. If you find an issue, you can visit their website or contact them directly for instructions on how to proceed.
Give your credit a boost with Loansmart!
Sometimes, checking your credit report will give you the boost you need to improve your credit score. If your credit score is low and you have upcoming credit you know you’ll need to apply for, consider a bad credit loan from Loansmart! We offer short term loans with competitive rates and fees to help you pump some positive financial activity into your credit report. Click the button below to view our lending criteria terms and conditions and apply online today.