Frequently asked questions

Your file contains important personal information that should not be accessed by anyone else without your permission.

In order to help keep this information secure, Equifax has password protected the file.

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Equifax Score Rating is a service where all of the information on your credit file is evaluated to produce a single score out of 1,000. When you apply for credit, this rating is calculated at the time of application by a mathematical equation which analyses multiple types of information from your credit file, and then compares this information to the patterns of a vast number of past credit files.

The Equifax Score Rating estimates your level of future credit risk and your ability to repay the amount that you will owe. Credit providers and other companies who have the authority to access your credit file in accordance to the Credit Reporting Privacy Act 2020 can use your Equifax Score Rating to assess your intention and ability to make payments.

The ability to quickly, fairly and consistently consider all of this information, including the relationships between different types of information, is what makes credit scoring so useful.

Your Equifax Score Rating is included with your credit report.

Note: We do not score credit files where insolvency information is present.

From 1 July 2019 your Equifax Score Rating is included with all credit reports ordered from My Credit File.

Prior to this date, a score may not have been included.

Not in all cases.

However, most credit providers have a credit checking process in place when considering applications for credit or supplying goods and services where payment is deferred. A credit check helps to ensure that their credit decision is sound before approving or declining an application for credit.

All credit providers need to be assured that before offering credit that the applicant has a good credit history and has the ability to manage their credit exposure.

1. Credit providers  (these include: banks, finance companies, electricity retailers, gas retailers or telecommunications service providers) can access your credit file for the following purpose:

• Opening a new loan/account. We call this access: Account origination
• Managing your account (i.e. an increase to a loan or when reviewing your current credit card limit etc.). We call this access: Account management Access.
• When you haven’t met your payment obligation. We call this access: Account Management Collections.

2. A prospective insurer that is a registered insurer may access your credit file for the purpose of a decision on the underwriting or continuation of insurance in respect of a credit related transaction relating to an individual. They will see positive and negative data (even if they do not supply any positive data).

3. An example of what these other companies would be able to see is as follows:

Let’s say you have the following accounts:

• A credit card with Bank A (who supplies positive data)

• A home loan with Finance Company B (who does NOT supply positive data)

• A phone account with Company X (who supplies positive data)

In this example, Bank A will be able to see the positive CR data Company X have supplied & vice versa.

Finance Company B however will only be able to see negative information and none of the positive CR data Company X and Bank A have reported.

Effectively what this means is: if the company provides positive data, they will see negative & positive data in return. If the company does not provide positive data, they will only see negative information when viewing your credit file.

The comprehensive credit reporting system gives New Zealanders more power to demonstrate credit worthiness and manage their credit profile.

• Highlights good credit behaviour: You will be able to demonstrate recent good credit behaviour because the Comprehensive Credit Reporting system records if you have made your credit payments on time.
• Faster recovery from adversity: You may improve your credit profile more quickly after an adverse financial event by showing good credit behaviour, potentially countering the impact of a default which may be up to five years old.
• Quicker to establish a credit report: For individuals new to consumer credit, the use of comprehensive information means that you can build credit worthiness more quickly. For example, if you are a young person or a recent arrival from overseas.
• A more balanced system: It is a more balanced and transparent system for consumers who already have a good credit history, as well as those who previously had trouble meeting their financial commitments – as it may enable them to access quality credit where they may not have been able to previously.
• A better deal with providers: With more complete credit bureau information and monthly updates, having a credit profile and showing good credit behaviour may become important in accessing credit at the best price.

From a consumer perspective, this repayment history could demonstrate whether current and/or recent financial commitments have been met or not. In an instance where a consumer, for example, loses their job and the situation results in payment defaults being loaded onto their credit file - these payment defaults remain on their credit file for five years.

Repayment history gives the consumer the ability to demonstrate they have rehabilitated their credit behaviour and facilities e.g. home loan, credit cards, personal loan etc. by showing a clear repayment history over a period of up to 24 months. This may then allow consumers' access to quality credit (assuming sufficient capacity to repay) notwithstanding the presence of payment defaults.

As it will take time for this new credit data to build up, the above benefits are likely to take some time to evolve.

In 2012 the Credit Reporting Privacy Code 2004 (the Code), which is the regulation governing consumer credit reporting in New Zealand, was amended by the Privacy Commissioner to introduce comprehensive credit reporting. Comprehensive credit reporting changes the type of consumer credit information that can be collected by credit bureaus and used by credit providers when making a credit decisions. This change came into effect on 1 April 2012. A copy of the Code may be downloaded from the Office of the Privacy Commissioner’s website: www.privacy.org.nz

Previously New Zealand had a negative reporting system. This meant consumer credit reports could only contain information such as credit enquiries (typically applications for credit e.g. a personal loan or credit card) or the fact a particular credit provider or collection agency had loaded a credit payment default. Under the new comprehensive credit reporting system positive data is able to be included on credit reports and provided to eligible groups - this will provide a more balanced view of an individual’s credit history. Many developed countries in the world operate under a comprehensive credit reporting system already.

The positive data that can be included on credit reports includes account information such as the date an account was opened and closed, credit limit, type of credit account, as well as 24 months credit repayment history. Repayment history information can only be provided by and accessed by certain agencies. Those agencies are;

• Registered Credit Providers (i.e. Banks, Finance Companies),
• Telecommunications providers,
• Retail Gas and Power Utilities and;
• Insurers (for defined purposes).

As a consumer, you can access and view all information held in your credit file including any positive data that has been submitted.

Industry rules around data, standards and sharing may further limit those organisations that may access positive data.

• All adverse information (i.e. collection data, default data, summary instalment orders and judgment records), remain on your credit file for five years.
• Previous inquiry information remains on your credit file for four years.
• Insolvency information, including record of entry into No Asset Procedure and single bankruptcy, may be held for four years from the date of discharge.
• Multiple insolvencies may be held indefinitely.
• Account Repayment History for up to 24 months.

An individual’s details will include name, date of birth, gender, and address history. These are held by us for the life of the credit file.

This information is used to distinguish the credit file information from other individuals that are held in the database.

NB: Even when a payment default has been remedied by the customer and brought up to date or paid in full, it will remain on your credit file for a period of five (5) years and then removed from your credit file. This becomes part of your credit history.

Visit our Credit Disputes page to find out how you can request a correction or investigation into an entry of public record information (e.g. bankruptcy, public notice, court judgment or directorship).

Visit our Credit Disputes page to find out how to correct or investigate the identity content of your credit report.

As a consumer living in New Zealand, you have rights under the Privacy Act 2020 in relation to the access, storage and use of your personal credit information. The Privacy Act promotes and protects consumer privacy.

It has established privacy principles in relation to:

• The collection, use and disclosure by public and private sector agencies, of information relating to consumers.
• The access by each consumer to, and correction of, information relating to them which is held by public and private agencies.

The Privacy Act establishes 12 privacy principles:

• Principles 1,2,3 and 4 relate to the collection of personal information.
• Principles 5 and 9 relate to the storage of personal information.
• Principles 6 and 7 relate to the access and correction of personal information.
• Principles 8 and 10 relate to the use of personal information.
• Principle 11 relates to the disclosure of personal information.
• Principle 12 relates to the use of unique identifiers.

The Credit Reporting Privacy Act 2020 has been issued under the Privacy Act, and provides specific rights in relation to credit information held by Veda as part of our Consumer Credit Reporting Business.

Equifax supports the Code’s approach to promoting fairness, accuracy, and privacy in the practice of credit reporting.

You can find the complete version of the Privacy Code at www.privacy.org.nz and the Privacy Act at www.legislation.govt.nz.

You have certain rights with regard to personal credit information that we hold about you. In particular you can:

• access your own personal credit information
• request incorrect information to be amended or a statement of correction to be added to your credit file
• expect the information to be safely stored, and used by or disclosed only to authorised people

A payment default is in simple terms an overdue account. In most cases they arise when a debt owed by you has become overdue (i.e. not paid within 30 days of the payment date printed on the Invoice by the credit provider).

Default information can be listed on your credit report if:

• your account has been outstanding for 30 days or longer
• you have not responded to the credit providers letters to pay the debt and they have written the account off
• you have not responded to the credit providers letters to pay the debt and they referred your account to a solicitor, collection agency or repossession agency to recover the debt on their behalf.

All overdue payment defaults may only be listed by the credit provider when they have taken the necessary steps to recover the whole, or any part of the debt owed by you. In all cases the credit provider must have requested the borrower (that is you), either in person or in writing, to pay the outstanding amount.

When you have paid the outstanding amount owing or brought your account up to date the credit provider is obliged by law to amend your credit file to reflect that the overdue account has been paid. When this happens an amended credit file is then automatically forwarded to any credit provider that may have requested a credit file on you 30 days prior to the update being made.

All payment defaults which are unpaid or overdue accounts remain listed on your credit file for a period of five (5) years, unless an investigation proves that the account was listed in error then in this case the information can be deleted by Equifax, provided the necessary documents provided demonstrate this.

Most credit providers look unfavourably on customers with a history of overdue accounts and other adverse information on file.

Not in all cases.

There is no dollar limit that triggers a credit file check. In fact applications for services such as the purchase of mobile phones and the associated airtime may even appear as zero on your credit file. This is because the amount of the applicants' potential monthly bill is unknown. The same applies to electricity and gas providers.

Yes. You can reduce the chances of credit fraud happening to you.

Equifax has a product called My Credit Alert which may be useful to help detect and prevent identity theft. Identity theft is when a person takes your identity details – such as your name, credit card number, or any other identifying information, without your permission and then uses your identity to obtain credit (i.e. to open accounts, take out loans, buy cars etc.).

My Credit Alert will notify you within 24 hours via email, with details of who is accessing your credit file and the purpose of this access.

Other steps to protect your identity:

1. File a report with your local police station.
2. Obtain a copy of your credit file to confirm if someone has used your identity.
3. Contact the credit providers directly and inform them of the fraudulent activity, otherwise they will hold you liable and responsible for any bad debt incurred. Close any accounts that have been interfered with or opened fraudulently.
4. Call and report the matter to each Credit Reporting Agency within New Zealand to notify them so that they can update their records.

Remember, identity theft can happen to anyone.

We recommend you regularly check your credit file. You can manage your credit reporting information throughout the year with My Credit Alert which includes your credit report and credit alerts.

You can find out more about all of our services on our Products page.