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10 Hacks To Improve Your Credit Score

It is important that you have as high of a credit score as possible, so that you can be approved for loans and get lower interest rates when buying a home and/or car, or even starting your very own business. Believe it or not, but there are many ways for your credit score to go down without any warning. Here are ten instances where your credit score can take a hit, as well as ways you can fix or prevent possible problems from further doing harm from your credit history.

You have not applied for credit before; you need a history

When you apply for a credit report, review your financial history, and do so sporadically. You can find possible errors before you ever start to plan for an approval. You can start off with a good credit score or a bad one, and this really depends on you correcting any possible mistakes in your personal or financial history.

You’ve made too many attempts to obtain credit (credit applications)

Your credit history is not only based on how much debt you have as of now. When it comes to your credit score, your debt to credit ratio is very important. You can experience lower credit scores just simply by attempting to check your credit report often in a short amount of time. Only attempt to check your credit every once in a while.

You have changed your name (got married); Your new name could be a brand new credit file with no history

Credit scores are based on personal information within your credit file, such as your name and address. If for any reason you decide to change your name, you can get the slate wiped clean on your credit report. This can leave you will little to no credit history. Your credit report will likely be under your previous name. A tip to avoid this happening is to list any other names that you are known by on your application, that way your credit application will be linked to your existing credit file.

You change/move to a new address a lot

Moving may not seem like a big deal for your credit score but being inconsistent with your residency can actually take a toll on your credit. If you often change your address, you can find yourself being repeatedly denied a personal loan. Also, it’s important to provide your full and accurate address on each loan application.

There is incorrect information on your credit report

If you know for certain that specific information on your credit history in incorrect or inaccurate, be sure to change it, fast. You need to take a look at your score at least one time a year in order to make sure it is accurate avoid penalties towards your credit score. If there are loans that you are not familiar with, be sure to get to the bottom of them so that there are no errors in your credit report. If you are a twin you may see credit enquiries come through on your credit file that belong to your twin, so it pays to check your credit file for accuracy. You can request a free copy of your credit report from the three main credit reporters in New Zealand.

You make late payments on credit accounts (eg. visa card or a bank loan)

If you want a good credit score, then it is very important for you to pay your debts on time. If you fall back on credit card bills and car and/or house payments on a monthly basis, your credit will take a turn for the worse.

You make late payments on utility accounts (eg. power or phone account)

Of course, it is not only loans that you need to pay off on time. Monthly payments, such as utility bills, cable bills, and other expenses can affect your credit score if you are not quick enough to pay them. You cannot afford to miss your payments if you are looking to take out a personal loan.

You defaulted on your obligations (eg. a loan or credit card)

When you default on your payments, these instances appear on your credit report. In turn, this makes it hard for you to qualify for loans. Even if you can repay your defaults afterwards, these defaults will be documents for at least four years.

You got a court judgement against you

If by chance that you are identified as a defendant in court for a case of outstanding debt or bankruptcy filings, and lose the case, it will too affect your credit score.

You went bankrupt, filed no asset procedure (NAP) or filed Summary Installment Order (SIO)

Filing for bankruptcy and/or asset protection will also affect your credit score. The trick about bankruptcy is that the better your credit score, the bigger of a drop it will experience. Even though bankruptcy is meant to release your obligation from some debts, expect your credit score to be severely reduced or disappear completely.


To prevent a drop in credit score, be on the lookout for errors in your credit report, pay money that you owe to your creditors on time, and do not make any extravagant expenses that could affect you for the worse from a financial standpoint. If you want to talk to us about applying for a loan please call Quick Loans on 0800 200 275 or simply apply online. 

This is not legal advice.

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