New credit score for New Zealanders

MEDIA RELEASE

New credit score for New Zealanders

AUCKLAND, 20 July 2009 – A new credit scoring system launched on 2nd August will help New Zealanders get a better understanding of how they rate and just how credit worthy they are.

Credit reports are familiar to many. They contain information about how many times people have sought credit and whether they have defaulted on debts or been bankrupted.

Now the country’s largest credit bureau, Veda Advantage, has taken that information one step further – so that all information about a person is collated together to produce a single score (calculated at the point of application)– which measures the applicant’s potential credit risk. This is in addition to, and not in substitution for, the usual information which appears on a credit report.

The VedaScore Plus has a scale running from minus 330 to 1000 although most New Zealanders will have a score above zero.

A person with a score of 100 or below will find it difficult to obtain credit from a bank or finance company. The average score will be in the range of 500 to 600 whilst a person with a score of 700 will generally be a good credit risk.

Managing Director for NZ & International John Roberts says “New Zealanders need to better understand their own personal credit rating and the impact of a good or bad rating on their financial position.” This becomes even more relevant if New Zealand like the rest of the OECD world moves towards a comprehensive credit reporting regime over the next few years as a credit score takes on even greater currency as to a person’s potential ability to take on additional credit.

Veda Advantage recognises the efforts being made by government agencies, banks and now schools to improve financial literacy among New Zealanders. The company’s credit scoring system will assist these efforts by providing greater transparency and understanding about individual credit worthiness.

How do I improve my VedaScore?

How do I move from a poor VedaScore to average?
• Pay outstanding loans
• Not default on your debts/obligations
• Not enter bankruptcy
How do I improve my average VedaScore?
• Show personal and financial stability
• Consolidate your outstanding debt
• Only apply for credit when you really need credit
How do I keep a good VedaScore?
• Maintain your current financial position
• Borrow from reputable lenders and pay your debts

ENDS

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