What is a Credit Report?

Trying to decide whether or not applying for a Personal Loan is for you? It’s true, that the people who walk through the doors of Linsa Finance and apply for a personal loan are from all walks of life, these people also have a multitude of reasons for wanting to take out a loan. There is no discrimination and there are definitely no stereotypes. However there will always be one check that is required of all people when applying for a loan, and that is… a credit check!

Naturally, credit reports are an essential part of any loan application, so for your guidance we thought we’d give you a little help to ‘unpack’ what is included in a credit report and credit score.

In New Zealand, your credit details are held by the following three reporters that operate here in;Veda Advantage, Dun and Bradstreet and Centrix and as a citizen of New Zealand, you have the legal right to request information that is held about you by a credit reporter at no cost. For your own assurance we recommend regularly checking this information so it is accurate – especially when applying for a personal loan, you will then know exactly where your credit rating stands.

So what is a credit report and credit score?

A credit report includes any payment defaults that are recorded against your name. The only time a default will occur is when a payment has been overdue for more than 30 days and the lender has taken steps to recover the outstanding amount.

IMPORTANT INFORMATION – a default payment can stay on your credit record for five years – even when you pay the amount in full!

As of April 2012 your credit file now includes money that you have borrowed and whether you are making regular repayments on time. Money borrowed includes credit cards, hire purchases, car finances and mortgage repayments. Essentially, the more repayments that you make, the cleaner your credit record will be.

With a credit score, every applicant is measured according to how their credit information compares to other credit-active New Zealanders at that point in time. It will then produce a numerical score to help determine whether the applicant should be accepted or not.

Not everyone will have a clean slate to work from – which we understand, so whether you’re a first time borrower or have done this many times before it is always good to know how to keep your record clean and what tips and strategies might assist you for future lending.

Bill Repayments

It is crucial that you try to keep this area as clean as possible, having a report that demonstrates that you can pay your bills on time will be beneficial for the lenders decision making.

Unpaid Fines

Any unpaid court fines or unpaid reparation may be included when a credit check is processed. If the fines are evident this may affect your ability to get credit.

You are able to check out the status of your fines at fines.govt.nz

Honesty is your best Policy

If you are struggling to pay of any debt ensure that you are transparent with your communication to your lender. If you are open and honest this may work in your favour and you may be able to work out something with your lender. But most importantly, try and meet those bill payment due dates as best as you possibly can.

Whilst you may not be able to amend your credit rating immediately, you can work on it over a period of time to change these pressing credit factors so that your score becomes stronger. Of course, if in reviewing your credit report you find that there are some inaccuracies that are causing your score to be lower than it should be, look into those discrepancies and have them investigated accordingly.

Credit reports and your personal credit rating, are an important factor when you’re considering applying for a personal loan, it will always be in your best interest to know what your credit entails and how this may affect your loan application.

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13 Criterion Street, OTAHUHU
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171 Great South Road, MANUREWA
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Shop 2, 361 Great North Road, HENDERSON
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Client Check Sheet

As a Responsible Lender it is important to Linsa Finance Ltd (Linsa) that you as a client take as much time as you need to make an informed decision prior to entering into a loan agreement with us. We wish to ensure you fully understand how the agreement works, and what the credit fees and interest are.

Linsa staff is happy to answer any questions you may have prior to making this decision.

Things to consider prior to entering a loan with Linsa

Linsa’s loan agreement and terms and conditions are available both at its offices and on its web site for me to take away and seek legal advice and/or independent advice from others.

Have the key terms and conditions of Linsa’s loan agreement been explained to me, including its credit fees and interest rates?

Has Linsa explained to me that it must make inquiries regarding my income and expenditure to enable Linsa to understand my current circumstances, and ensure loan repayments under the loan agreement can be met without undue difficulty?

Has Linsa explained to me it must make inquiries as to the purpose of the loan so it can decide whether the proposed loan will meet my requirements and objectives?

Have Linsa’s staff provided me with the necessary information regarding this transaction clearly and in an understandable manner, and answered all questions I put to it?

That Linsa is offering only one product, a Consumer Credit Agreement with a fixed interest rate, and does this product meet my requirements and objectives?

That if Linsa hold security for a loan that the security could be at risk if the loan repayments are not made.

That there may be other options to obtain finance to meet my needs. eg. Bank Loan, Credit Card cash advance, payment arrangement with power company etc?

Linsa offers Repayment Waiver Protection as an optional extra. Would this protection and its benefits be appropriate for me to request with the loan?

If your loan is being refinanced? Has Linsa explained to me any key differences between my current loan, and the proposed loan?

That Linsa recommends that I repay this loan in full rather than refinancing the existing loan and maintaining a constant outstanding balance?

DECLARATION & PRIVACY WAIVER Linsa Finance Limited (Linsa)

I promise that everything I have said in this application form is true and correct. I hereby declare that the information provided in my application to Linsa is true and correct.
I understand that Linsa will ask other people whether or not I pay my bills on time. Linsa will also check other information about me so it can decide whether or not it wants want to lend to me. It will check to see what security I have given over my property before. For example, Linsa may check against my name to see whether or not anything I own is on hire purchase. I understand that Credit Checks and PPSR Checks will be obtained to enable the processing of my loan application.
So that the lender can decide to lend to me or not, I declare that I am not an undischarged bankrupt and know of no legal actions pending in the foreseeable future that have the potential to result in judgements against me, or bankruptcy.
I understand that in order to process my loan application Linsa is asking me to provide personal information about myself and that Linsa will use that information to access Veda Advantage’s, Centrix and/or other credit reporting services and undertake a credit check on me.
I understand that the provision of my driver’s licence number is voluntary and that my driver’s licence number will be provided to Veda Advantage/Centrix as part of processing a credit check.
I understand that Veda Advantage/Centrix and/or other credit services will give Linsa information about me for the purpose of assessing my loan application and that Linsa will give Veda Advantage/Centrix and/or other credit agencies information which will be held by those credit agencies on their systems and will be used to provide future credit reports. This means that the information I give Linsa and which Linsa passes on to Veda Advantage/Centrix and/or other credit agencies will be given to their respective customers who also use the particular credit reporting service. In addition I understand that motor vehicle register and PPSR checks may be obtained to enable the processing of this loan application.
I understand that Linsa may use Veda Advantage/Centrix and/or other party’s credit reporting services in the future in relation to the provision of credit to me. This may include using monitoring services and receiving updates if any of the information held about me changes.
If I default in my payment obligations to Linsa, I understand that information about my default may be given to Veda Advantage/Centrix and/or any other credit reporting services; information about my default may then be given to their respective customers.
I understand that I can access my personal credit information from Veda Advantage/Centrix and/or other credit services, and that if it is incorrect, request that it be corrected. Information held by Veda Advantage can be accessed through their website www.mycreditfile.co.nz or by writing to Veda Advantage at Private Bag 92156, Victoria Street, Auckland. Information held by Centrix can be accessed through their website www.centrix.co.nz/Personal/Get+my+credit+report.html or by writing to Centrix at PO Box 62512, Greenlane, Auckland.
I authorise Linsa to process Centrix Smart ID report in accordance with the requirements of the Anti-Money Laundering and Countering Financing of Terrorism Act 2009.
I hereby irrevocably authorise Linsa and its successors and assigns to contact the following people or organisations, and they may give to and seek from them such personal, financial and commercial information as Linsa deems necessary relating to any loan application with them, the administration of any loans, and any ongoing debt recovery:
any other finance providers, or bank/s with which I have dealings with, or appear to have had previous dealings;
any government departments where that is directly material to my financial position;
any budget advisors I have used or use;
past or present employers;
past or present landlords;
credit reporting agencies;
relatives and referees, or other contacts that I have listed and any other person or organisations about which I have provided information to Linsa in the process of making this loan application.
debt collection agencies, solicitors, other creditors
In the event of default, I/we acknowledge and agree that item 11(g) may include supplying information to my family or other members of my household if Linsa is unable to make contact with me/us.
I acknowledge and agree that any costs relating to possible debt recovery are payable by me and that a default will be recorded against my credit history for non payment of debts incurred with the Linsa.
I understand and agree that the information on this form may be exchanged with other credit providers or other third parties to assist with the recovery of my debts.
I agree that you may produce this authority to such parties for the purpose of collecting such information.
Under the provisions of the Privacy Act 2020, I am aware that I am entitled to have access to and request correction of personal information held about me.
I understand that I am entitled to receive a copy of any information that you may receive from third parties about me, and any information that you may provide to third parties about me.
I declare that I am not known by any other name and that there are no official documents in New Zealand or overseas showing me with any other name or form of name.
I understand the importance of providing the correct information to Linsa and that failure to do this will affect my loan application and any loan agreement I have with Linsa. I declare that the information I have given is a true and accurate statement of my financial position and contains no omissions or false information which would materially effect the approval of the loan.
I understand that upon taking a loan agreement with Linsa, photo ID may be held on file for identification purposes.

21.I understand that Linsa may use the information I have provided to check by name against the Dow Jones Watchlist for any political affiliations. PLEASE NOTE: Any person who knowingly falsifies or omits relevant information may commit a criminal offence where a loan has been provided based on this information. I also confirm that I am not a un-discharged bankrupt or have ever made application to the Official Assignee for a “No Asset Procedure” form of bankruptcy I have read and accept the terms of this Declaration and Privacy Waiver.

CONDITIONS OF INSTRUCTION TO ACCEPT DIRECT DEBITS

The Initiator:

1.1. Will provide notice either: 1.1.1. in writing; or 1.1.2. by electronic mail where the Customer has provided prior written consent to the Initiator. 1.2. Has agreed to give advance Notice of the net amount of each Direct Debit and the due date of the debiting at least 10 calendar days (but not more than 2 calendar months) before the date when the Direct Debit will be initiated. 1.2.1. The advance notice will include the following message: “Unless advice to the contrary is received from you by (date*), the amount of $........... will be directly debited to your Bank account on (initiating date*).” *This date will be at least two (2) days prior to the initiating date to allow for amendment of Direct Debits. 1.3. Alternatively, the Initiator undertakes to give notice to the Acceptor of the commencement date, frequency and amount at least 10 calendar days before the first Direct Debit is drawn (but no more than 2 calendar months). 1.3.1. Where the Direct Debit System is used for the collection of payments which are regular as to frequency, but variable as to amounts, the Initiator undertakes to provide the Acceptor with a schedule detailing each payment amount and each payment date. 1.3.2. In the event of any subsequent change to the frequency or amount of the Direct Debits, the Initiator has agreed to give advance notice of at least 30 days before the changes come into effect. This notice must be provided either: (a) in writing; or (b) by electronic mail where the Customer has provided prior written consent to the Initiator”. 1.4. May initiate a Direct Debit on my/our account when authorisation is received from me/us in accordance with the terms and conditions agreed between me/us and the Initiator of each amount to be debited from my/our account. 1.4.1. notice will be sent of the net amount of each Direct Debit and the due date of debiting after receiving authorisation from me/us under clause 1.4 but no later than the date the Direct Debit will be initiated. This notice must be provided either: (a) in writing; or (b) by any other means which provides a verifiable record of the initiated transaction and where the Customer has provided prior written consent to the Initiator. 1.4.2. Where the notice is in writing it must include the following message: “The amount $....... was directly debited to your Bank account on (initiating date).” 1.4.3. Where the notice is provided by other means: (a) the Initiator should hold prior written consent of those means of providing notice; and (b) the notice should provide a verifiable record of the initiated transaction and include the amount and initiating date of that transaction. 1.5. May, upon the relationship which gave rise to this Instruction being terminated, give notice to the Bank that no further Direct Debits are to be initiated under the Instruction. Upon receipt of such notice the Bank may terminate this Instruction as to future payments by notice in writing to me/us.

The Customer may:

2.1. At any time, terminate this Instruction as to future payments by giving written (or by the means previously agreed in writing) notice of termination to the Bank and to the Initiator. 2.2. Stop payment of any Direct Debit to be initiated under this Instruction by the Initiator by giving written notice to the Bank prior to the Direct Debit being paid by the Bank. 2.3. Where no advance notice is provided under clause 1.4 a variation to the amount agreed between the Initiator and the Customer from time to time to be Direct Debited had been made without notice being given in terms of clause 1.4 above, request the Bank to reverse or alter any such Direct Debit initiated by the Initiator by debiting the amount of the reversal or alteration of Direct Debit back to the Initiator through the Initiator’s Bank PROVIDED such request is made not more than 120 days from the date when the Direct Debit was debited to my/our account. 2.4. Request the Bank to reverse any Direct Debits initiated by the Initiator under the Instructions by debiting the amount of the Direct Debits back to the Initiator through the Initiator’s Bank where the Initiator cannot produce a copy of the Instructions and/or Confirmation to me/us that I/we are reasonably satisfied demonstrate that I/we have authorised my/our bank to accept Direct Debits from the Initiator against my/our account PROVIDED the request is made not more than 9 months from the date when the first Direct Debit was debited to my/our account by the Initiator under the Instructions.

The Customer acknowledges that:

3.1. This Instruction will remain in full force and effect in respect of all Direct Debits passed to my/our account in good faith notwithstanding my/our death, bankruptcy or other revocation of this Instruction until actual notice of such event is received by the Bank. 3.2. In any event this Instruction is subject to any arrangement now or hereafter existing between me/us and the Bank in relation to my/our account. 3.3. Any dispute as to the correctness or validity of an amount debited to my/our account shall not be the concern of the Bank except in so far as the Direct Debit has not been paid in accordance with this Instruction. Any other disputes lie between me/us and the Initiator. 3.4. Where the Bank has used reasonable care and skill in acting in accordance with this Instruction, the Bank accepts no responsibility or liability in respect of: 3.4.1. the accuracy of information about Direct Debits on Bank statements; and 3.4.2. any variations between notices given by the Initiator and the amounts of Direct Debits. 3.5. The Bank is not responsible for, or under any liability in respect of the Initiator’s failure to give notice in accordance with clauses 1.1 to 1.4, nor for the non-receipt or late receipt of notice by me/us for any reason whatsoever. In any such situation the dispute lies between me/us and the Initiator. 3.6. Where notice given by the Initiator in terms of clause 1.4 to the debtor responsible for the payment shall be effective. Any communication necessary because the debtor responsible for payment is a person other than me/us is a matter between me/us and the debtor concerned.

The Bank may:

4.1. In its absolute discretion conclusively determine the order of priority of payment by it of any monies pursuant to this or any other Instruction, cheque or draft properly signed by me/us and given to or drawn on the Bank. 4.2. At any time terminate this Instruction as to future payments by notice in writing to me/us. 4.3. Charge its current fees for this service in force from time to time.

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Things to consider prior to entering a loan with Linsa