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

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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