A good credit score is essential for securing loans, getting favourable interest rates, and
ensuring financial stability. If you’re looking to improve your credit score in New Zealand,
this guide will provide actionable steps and answers to common questions about boosting
your creditworthiness.
What Is the Quickest Way to Raise Your Credit Score?
The quickest way to raise your credit score is to pay down existing debts, especially high-
interest credit card balances. Reducing your credit utilisation ratio, which is the amount of
credit you’re using compared to your credit limit, can significantly boost your score. Aim to
keep your credit utilisation below 30%. We appreciate that can sound hard, but regular small payments can soon reduce your debts.
How to Raise Your Credit Score in 30 Days?
1. Check Your Credit Report for Errors: Obtain a copy of your credit report from
credit bureaus like Equifax, Centrix, or Illion. Look for inaccuracies and dispute any
errors you find.
2. Pay Off Outstanding Balances: Focus on paying down credit card balances and
other revolving debts. Even small reductions in debt can positively impact your score.
3. Become an Authorised User: If possible, become an authorised user on a family
member's or friend's credit card with a good payment history. This can add positive
information to your credit report.
4. Increase Your Credit Limit: Request a credit limit increase from your card issuer.
This can lower your credit utilisation ratio, provided you don’t increase your
spending.
5. Set Up Automatic Payments: Ensure all your bills are paid on time by setting up
automatic payments. Late payments can significantly hurt your credit score.
How Can I Legally Raise My Credit Score?
Raising your credit score legally involves consistent, responsible credit management. Here
are some effective strategies:
1. Make Timely Payments: Always pay your bills on time. Payment history is the most
significant factor in your credit score.
2. Maintain Low Balances: Keep your credit card balances low relative to your credit
limits. High balances can negatively affect your credit score.
3. Avoid Opening Too Many Accounts: Each credit application results in a hard
inquiry on your report, which can temporarily lower your score. Open new accounts
only when necessary. Layby and Afterpay are all included in this.
4. Keep Old Accounts Open: The length of your credit history matters. Keep old credit
accounts open and active to benefit from their long-standing positive payment history.
5. Diversify Your Credit Mix: Having a mix of credit types, such as credit cards,
instalment loans, and a mortgage, can positively impact your score.
How Long Does It Take to Improve Your Credit Score?
Improving your credit score is a gradual process. While you can see some changes in as little
as 30 days, significant improvements typically take several months of consistent, positive
credit behaviour. Patience and persistence are key. We know that's not what you may want to hear but a few short months from now your credit score can look significantly different.
Can Checking My Credit Score Hurt It?
No, checking your credit score through a soft inquiry does not affect your score. In fact,
regularly monitoring your credit can help you stay on top of your credit health and quickly
address any issues that arise.
Why Is a Good Credit Score Important?
A good credit score opens doors to better financial opportunities, such as lower interest rates on loans and credit cards, higher credit limits, and more favourable terms. It also enhances your ability to secure rental agreements and can even impact job prospects in some industries.
Ready to Improve Your Credit Score?
Taking control of your credit score can lead to better financial opportunities and peace of
mind. Our team is here to help you understand your credit report, identify areas for
improvement, and develop a personalised plan to boost your credit score.
Book a call with us today 0800 005 676 to discuss your credit situation and explore strategies tailored to your needs!
Improving your credit score is a journey, but with the right steps and guidance, you can
achieve a higher score and enjoy the benefits of better financial health.
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