If you’ve ever applied for a loan and been declined, your credit score may be the reason. In New Zealand, a bad credit score can affect your ability to get car finance, but it’s not the end of the road. Here’s what you need to know about bad credit scores, how they’re calculated, and what you can do if yours needs work

When it comes to borrowing money in New Zealand—whether it’s for a personal loan, a mortgage, or a car—your credit score plays a big role. But what does it mean to have a “bad” credit score, and how can you turn things around if yours is less than ideal?

Understanding Credit Scores in NZ

In New Zealand, your credit score is a number between 0 and 1000, provided by agencies like Centrix, Equifax, and illion. It reflects your financial behaviour, including your borrowing history, bill payments, defaults, and any legal actions against you.

Each agency has slightly different scoring ranges, but generally:

• 800 – 1000 = Excellent

• 700 – 799 = Very Good

• 500 – 699 = Average

• 300 – 499 = Fair

• 0 – 299 = Poor or “Bad Credit”

If your score is below 500, you’re typically considered a higher-risk borrower, which can lead to declined loan applications or higher interest rates.

What Can Lower Your Credit Score?

• Missed or late payments on loans or utility bills

• Defaults, collections, or repossessions

• Multiple loan applications in a short time

• Court judgments or insolvency

• No recent credit history (also known as a “thin file”)

Can You Still Get Car Finance with a Bad Credit Score?

Yes! At Sterling Car Finance, we specialise in helping Kiwis with poor credit get behind the wheel. We work with lenders who consider more than just your score, like your current income, employment stability, and ability to repay.

How to Improve a Bad Credit Score

• Start making payments on time

• Avoid applying for multiple loans at once

• Pay off outstanding debts or defaults

• Check your credit report for errors

• Build a positive payment history over time

A bad credit score isn’t permanent, and it shouldn’t stop you from getting the vehicle you need. With the right support, improving your credit and getting a loan is possible. At Sterling Car Finance, we’ve helped many customers turn things around.

Worried about your credit score? We can help.
Apply online or speak to our finance team today — even if your credit history isn’t perfect.

Call us on 0800 771 881 or
Visit us at Sylvia Park or Takanini

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