People don’t tend to think much about their credit score, unless it becomes a problem, at which point it can be a little late.

So, what actually is a credit score? Why should you care? And how do you find out what yours is?

The key measure of creditworthiness

Your credit score is like a financial reputation grade. It’s a number — usually between 0 and 1000 — that shows how likely you are to pay back money you borrow or keep up with payments like your power bill, phone plan, or credit card.

In New Zealand, there are three main credit reporting agencies:

• Centrix
• Equifax
• illion

Each one has its own way of scoring, but the idea is the same: the higher your score, the more trustworthy you look to lenders and service providers. A strong score can help you borrow money at better rates, while a low score could mean higher interest or flat-out rejection.

Why does your credit score matter?

Even if you’re not thinking about taking out a loan right now, your credit score is still worth keeping an eye on. Here’s when it might matter:

• Getting a mortgage or car loan

Lenders check your credit score before approving any loan. A high score could mean better interest rates, potentially saving you thousands over time.

• Signing up for power or internet

Some providers check your score when you apply. If it’s low, they might only offer you a prepay plan (which can be more expensive).

• Applying for a rental

Landlords and property managers often do credit checks. A strong credit history can give you an edge in a competitive rental market.

• Job applications.

In some industries (like finance), employers might check your credit as part of the hiring process. It’s not super common, but it happens.

How do you check your credit score?

It’s free and super easy.

Each of the three agencies lets you request your credit report at no cost. Just jump onto their websites (at the above links) and follow the prompts. It might take a few days, but you can pay a fee if you want it faster.

Why check?

Because it’s not just about the number. You’ll also see:

• Which accounts are linked to your name (loans, power, phone, etc.).
• Whether you’ve missed any payments.
• Who’s been doing credit checks on you.

Spotted something dodgy?

Mistakes can happen. Maybe there’s a loan listed that you never took out, or a payment marked as missed when you know you paid it. These things can drag your score down, unfairly. For instance, one of my family members forgot to take his name off the electricity account when he moved out of a student flat – something that came back to bite him years later when a routine credit check returned a red flag.

If anything looks wrong, get in touch with the credit agency and ask them to investigate. They’re required to fix any information that’s incorrect.

If you think someone’s trying to apply for credit in your name (identity theft is a thing), you can freeze your credit file. That way, no one can run checks or take out credit using your details until the freeze is lifted.

How to build (or rebuild) your score

Whether you’re starting from scratch or trying to bounce back from a few financial stumbles, here’s how to keep your credit score looking healthy:

1. Pay your bills on time. This is the biggie. Missed or late payments are a red flag for lenders. Set up automatic payments so you’re never caught out.
2. Use credit wisely. If you have a credit card or overdraft, try not to max it out every month. Using less than 30% of your available credit is ideal.
3. Don’t go on a credit application spree. Every time someone runs a credit check on you, it’s recorded. Too many checks in a short time can make it look like you're desperate for cash.
4. Check your report regularly. Once a year is a good habit. That way you can spot errors early and sort them out.
5. Be upfront if you’ve had issues. If you’re applying for a rental or new power account and your score’s not perfect, honesty helps. Many companies are open to working with you if you show you’re making progress.

Planning ahead: Your credit score + your financial future

Your credit score isn’t something to stress about, but it’s definitely worth staying on top of. A good score can unlock better deals, more options, and less financial hassle in the future.

It’s also a good reminder that the financial decisions you make now matter. Your credit score can affect your ability to borrow for a home, refinance your mortgage, or even take out a business loan one day.

So, if you’ve never checked yours, why not add it to your to-do list? It’s quick, it’s free, and it’s one of the easiest things you can do to protect your future self.

This article is for information purposes only and should not be considered financial advice.