Tip 1: Pay your bills. And credit cards.

  • Make sure you always pay back your loans and bills on time. Late repayments are the number one factor in low credit scores.
  • Paying off your credit cards mean you’ll avoid being hit with heavy interest charges.

Tip 2: If you're going for something big, get a full credit report.

  • Yonda can help you find your score.
  • But for a full credit report you can take to the bank (in case you want a business or start up loan), try a credit reporter.
  • There are three credit reporters in New Zealand - Equifax, Centrix and illion.
  • Pick one of the three for a full financial report. Or, you can sign up here to get on the early mailing access list, to have your personalised report on one easily accessible mobile app.
  • Make sure the credit reporter you choose has got the correct info on you. If you see any errors in your report, hit them up to get it fixed.

 

Tip 3: Don't share your bills!

  • Make sure your name’s not on any bills shared with others, no matter how much you trust them. 
  • Because if your mates fail to pay their bills back on time, your credit score will suffer too.

Tip 4: Don't apply too hard for credit.

  • If lenders see that lots of people have been checking your credit score, they might think you’ve been hunting for more loans than you can afford.
  • Don’t apply for too many credit cards either - it makes you look desperate.
  • Quotation enquiries are when credit providers look at your credit history, without it making a difference to your credit score.
  • Full applications for credit do make a difference - in a bad way.
  • Too many full applications will make it look like you're desperate for cash, and drop your score. 
  • So check what kind of enquiry you're getting, when you're applying for either a loan or a financial checkup from a credit reporter. 
  • And, if you're running a full application before taking out a loan, make sure you really need it first! 
  • You can always use Yonda, when we launch, to check your credit score for FREE, without it hurting your score in any way. Signup here to get on the bandwagon early.

 

Tip 5: Don't default, don't abandon. 

  • If you’ve got a credit or store card you’re not using, cancel them.
  • Don't allow defaults or missing payments to stay on record.
  • Make a plan to pay them back, instead of leaving them open.
  • Also - don't move your debts around between credit cards, or shift credit over if applying for hardship. It's a real red flag for lenders.

 

Tip 6: Build a credit history.

  • No credit score can be just as bad as having a poor credit score. 
  • So having some financial history for your lender to track is a wise move.
  • Just make sure you build a credit history they actually want to invest in!

Hold on, dude!

Feeling overwhelmed? Yeah, we know that it’s all a lot to take in! But don’t worry.

Here at Yonda, we’re all about helping you get set up to take better control of your money.

That’s why we’re launching an awesome new app, where you’ll be able to check your credit score - for free. 

Sounds cool? We think so. Just sign up here to hear the latest news, or scroll through the rest of our site for more tips, tricks and advice.

 


 

Stop! Disclaimer!

Info and tools on the Yonda website are to be used as a guide only and do not constitute financial advice. Use Yonda as a starting point and then seek professional advice.

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