A bad credit rating isn’t the end—it’s a starting point. Whether you’ve faced financial hardship or made a few mistakes, there are clear steps you can take to improve your credit score in New Zealand. Let’s explore how to turn things around and move forward.

Many Kiwis experience bad credit at some point. Whether it’s due to missed payments, defaults, or unexpected life events, a low credit score can feel like a major roadblock, especially when applying for a car loan.

But here’s the good news: you can fix it.
With time, discipline, and the right advice, your credit score can recover. Here’s how to start.

1. Get Your Credit Report (And Understand It)

The first step is knowing where you stand. You can get a free credit report from:

• Centrix

• Equifax

• illion

Check for:

• Incorrect listings

• Old debts that should be removed

• Unfamiliar accounts (signs of identity fraud)

If you find an error, you can request a correction with the agency.

2. Pay All Bills on Time

It sounds simple, but payment history is the #1 factor in your credit score. Prioritise:

• Loan repayments

• Power and internet bills

• Phone plans

• Credit card minimums

Setting up automatic payments helps avoid future missed payments.

3. Clear Outstanding Debts or Defaults

Even if you can’t pay everything at once, contact your creditors to set up a payment plan. Paid defaults look better to lenders than unpaid ones.

Bonus: Once a default is paid, some lenders may consider approving your application.

4. Avoid Applying for Multiple Loans

Every application leaves a mark on your credit file (called a “hard inquiry”). Too many in a short time can signal financial stress and reduce your score.

5. Build Positive Credit History

Use small, manageable forms of credit and pay them off regularly. This shows lenders you’ve changed. A secured credit card or a well-managed car loan can help rebuild your score over time.

6. Stay Consistent Over Time

Rebuilding credit takes 6–24 months of consistent behaviour. Avoid quick fixes or services that promise to “wipe” your history—they often don’t work and can hurt more than help.

Can Sterling Help If I Have Bad Credit?

Yes. We work with people every day who are rebuilding their credit. Our team takes a supportive approach, looking at your whole situation, not just your credit score.

We offer:

• Flexible loan terms

• Zero deposit options

• Car finance for all visa types

• Advice on budgeting and repayment

Fixing bad credit doesn’t happen overnight—but with the right tools and mindset, it absolutely can happen. At Sterling Car Finance, we believe in second chances—and we’re here to help you take the first step.

Start fresh with support that understands your journey.
 Call 0800 771 881 or
Visit us at Sylvia Park or Takanini
Apply online at sterlingcars.co.nz

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