1. Get a copy of your Equifax Credit Report
The first step you can take to help improve your Credit Rating is to obtain a copy of your Equifax Credit Report. This will help you to see exactly what is on your file and what a financier would see if you were to apply for finance. To be able to improve your Credit Rating, you need to know where you stand.
You can request a copy of your Equifax Credit Report for free by visiting the MyCreditFile.co.nz website.
2. Check if any debts/defaults have been listed
The main thing that will hinder your ability to obtain finance will be any listed defaults (unpaid debts) or judgements. Under the defaults section, it will display the company who listed the default, the default date and the amount.
It is much harder to obtain any type of finance if you have defaults listed on your Credit File. Financiers who are considering lending you money will take this into account and if there are outstanding defaults listed, this makes them hesitant to lend you money seeing that you haven’t paid previous finance commitments.
If you believe that a default listed on your Credit File is incorrect, contact the creditor who listed the default as soon as possible to seek clarification as it may have been listed in error.
3. Arrange to pay any outstanding defaults listed
If you are in a position to start paying off any defaults listed on your Credit File, contact the creditor who listed the default to make a payment arrangement. Once a default listed on your Credit File is paid out, even though it can remain on your account for up to 5 years, it shows financiers that you have taken responsibility for the debt and tried to rectify it. You will have a much higher chance of being able to obtain future finance if any defaults listed on your Credit File have been paid out.
4. Ensure no future defaults are listed on your file
If you are having trouble meeting your current loan commitments, rather than waiting for it to become a big issue or trying to ignore the problem, speak to your financiers or loan providers as soon as possible. Generally you will be able to come to a payment agreement with them that is affordable for you and will help you stay on top of your commitments.
5. Keep credit inquiries to a minimum
The other detail on your Credit File that financiers consider to help determine your suitability for finance is the number of recent credit inquiries that are listed. Each time you apply for a loan, credit card, mortgage or utility account, the credit provider accesses your Credit File and an inquiry is added. Financiers tend to shy away from lending to applicants who have a relatively high number of credit inquiries on their Credit File within a short period of time.
Make sure that when you are applying for finance, you do your homework but keep actual finance applications to a minimum. Shopping around is a great idea, however when it comes to finance, it can have a negative impact on your ability to obtain finance if you apply with too many lenders in a short space of time.
How can Kiwi Car Loans help you?
The great thing about Kiwi Car Loans is that we have accreditations with many New Zealand financiers and can compare them on your behalf to get you the best possible finance deal without potentially hurting your Credit File through oodles of enquiries.
Our Finance Consultants are experts in finding our clients a perfect finance solution for their current circumstances through their expert knowledge of each of our financier’s lending criteria. We can effectively compare them on your behalf to determine which lender will give you the best finance option based on your individual profile and requirements.
So speak to the team at Kiwi Car Loans today on 0800 008 888 to see how we can save you time and money and make all your vehicle finance needs easy!
Phone us on 0800 008 888
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