Quick answer
When a New Zealand business lender checks your credit, it usually sees a credit score, your recent credit enquiries, any defaults, judgments or insolvency, your repayment history on reported accounts and, for companies, director and company records. The information comes from credit reporters Centrix, Equifax and illion, which can hold different data. You can request your own reports free from each, and should check them for errors before applying.
Key points
- Three credit reporters: Centrix, Equifax and illion.
- Lenders see enquiries, defaults, judgments and repayment history.
- Company and director records are checked too.
- Your own reports are free to request and errors can be corrected.
Most business owners only think about their credit report when a lender says no. By then, it’s too late to fix anything quickly. Knowing what lenders see, and checking it yourself first, is one of the simplest ways to improve your chances of getting the finance you need on terms you can live with.
Who holds your credit information
New Zealand has three main credit reporters: Centrix, Equifax and illion. Lenders, utilities, phone companies and other creditors report information to one or more of them. Because not every creditor reports to all three, your reports can differ. A lender might check one, two or all three, so it’s worth checking each yourself.
What’s on a personal credit report
- Identity details. Name, date of birth, addresses and sometimes your driver licence number.
- Credit enquiries. Each time you apply for credit, the lender’s check is recorded, along with the type and amount of credit.
- Repayment history. Under comprehensive credit reporting, whether you’ve paid reported accounts on time each month.
- Defaults. Overdue debts that a creditor has listed, usually after it’s been unpaid for a while.
- Judgments. Court orders for unpaid debts.
- Insolvency. Bankruptcy, a No Asset Procedure or a summary instalment order.
- A credit score. A number summarising your risk, calculated by the reporter.
What’s on a company credit report
For a company, a lender may also see:
- registration details and status from the Companies Office;
- directors and shareholders, and their other directorships;
- defaults and judgments against the company;
- PPSR registrations, showing which lenders already hold security over company assets;
- payment behaviour reported by suppliers, where available.
Lenders often check both the company and each director, because directors usually give personal guarantees.
How lenders read it
A credit score is only a starting point. Lenders look at the detail behind it:
Enquiries. Several applications in a short time can suggest financial stress or that other lenders have declined you. One or two is normal.
Defaults. The amount, how recent, whether paid and who listed it all matter. A small paid default from three years ago reads very differently from a large unpaid one from last month.
Repayment history. A run of on-time payments helps offset older problems. Recent missed payments are a bigger concern.
PPSR registrations. Existing security interests show what the business already owes and whether other lenders have first claim on its assets.
How to check your reports
Request your report from each of Centrix, Equifax and illion. Personal reports are free on request, although some services charge for faster delivery or extras like ongoing monitoring. Read each one line by line and check:
- Are your personal details correct?
- Do you recognise every enquiry?
- Are any defaults wrong, duplicated or already paid but still shown as unpaid?
- Does the repayment history match your records?
- Is there anything listed under a name or address that isn’t yours?
Fixing errors
If something is wrong, contact the credit reporter and ask it to correct the information. It will usually check with the creditor that reported it. You can also go to the creditor directly. The Credit Reporting Privacy Code gives you the right to access and request correction of your credit information, and the Privacy Commissioner’s office can help if you’re not getting anywhere.
Improving a file that’s accurate but weak
If the problems are real, time and behaviour fix them:
- Pay every account on time. Repayment history now counts in your favour.
- Pay off any small unpaid defaults; a paid default is viewed far better.
- Avoid applying for credit you don’t need, and don’t shop around with formal applications.
- Close accounts you don’t use, such as old store cards.
- Keep your address and details up to date with creditors so bills reach you.
An illustrative example
A Hastings electrician is declined for equipment finance and doesn’t know why. He requests all three reports and finds a $340 default from a phone company for an account at an old address, listed two years ago and never paid because the bills went to a previous flat. He pays it, gets the listing updated to paid and asks for a note to be added explaining the circumstances. On his next application he explains it upfront, and a lender approves finance for a new van, secured on the vehicle. Illustrative only.
Telling a lender about issues
If there’s something on your file, say so in your enquiry. A sentence or two explaining what happened, whether it’s been paid and what’s changed lets a lender assess it fairly. Leaving it for the lender to find tends to lead to a decline, because the lender is left guessing.
Credit reports and sole traders
If you trade as a sole trader, there’s no separate company file: your personal report is your business credit history. That makes keeping it clean even more important. Paying personal bills on time, keeping personal credit cards under control and not applying for unnecessary personal credit all feed directly into how lenders see your business.
How often to check
Checking once a year is a good habit, and always a month or two before you plan to apply for finance. That gives you time to sort out errors before they cost you. Some owners also set up alerts with a credit reporter so they’re told when a new enquiry or default appears, which can catch identity fraud early.
Business enquiries versus personal enquiries
When you apply for business credit as a director, the lender may run a check on the company and a separate check on you. Both can be recorded. Lenders understand this, but a string of personal enquiries for car loans, credit cards and buy now pay later accounts alongside business applications can make your overall file look stretched. If you’re planning a business loan in the next few months, hold off on optional personal credit applications.
Identity theft and fraud alerts
If you see enquiries you don’t recognise, someone may be applying for credit in your name. Contact the credit reporter straight away, ask about placing a suspension on your file and report it to the police if needed. A suspension stops new credit being approved in your name while it’s in place, which protects you but also means you’ll need to lift it before applying for finance yourself.
Ready when you are
Tell us what you need and anything you know is on your file. Asking won’t mark your file, your enquiry isn’t passed down a list of lenders, and a real person reads it and calls you back to talk through which lenders are likely to look past it. Start your enquiry.
Frequently asked questions
Does checking my own credit report affect my score?
No. Requesting your own report is not a credit enquiry by a lender and doesn't count against you.
How long do defaults stay on my file?
Generally around five years from the date they were listed, even once paid, though paid defaults are viewed more favourably.
Do lenders see my income?
Not on a credit report. Income comes from your bank statements, tax returns or declaration.
What's comprehensive credit reporting?
It means positive information, such as on-time repayments, is reported as well as negatives. A good repayment history can now work in your favour.