What is a bad credit score in NZ?
On the Centrix scale, a score of 512 or below is Poor and 513 to 668 is Fair. A low number makes some lenders say no, but it is not a fixed no, and the reasons behind the number matter more.
A bad credit score is a low number that tells a lender you may be a higher risk to lend to. In New Zealand there is no official definition, and there are three scoring systems. The clearest published guide comes from Centrix: its scores run from 1 to 1,000, and it calls anything from 1 to 512 Poor, with 513 to 668 sitting in the Fair band above it. If that is where you are, the useful questions are what pulled the score down and what a car lender will do about it.
What the published bands say
Centrix’s June 2026 guide to your credit file describes the bottom two bands like this.
| Band | Centrix score | Share of scored people | In Centrix’s words |
|---|---|---|---|
| Fair | 513 to 668 | 20% | You might get credit, but there may be extra conditions |
| Poor | 1 to 512 | 10% | You are more likely to be rejected for most credit cards, loans and utility services |
So a Poor score puts you in the bottom tenth of people Centrix scores, and Fair is the next fifth. These are descriptions of how credit providers generally treat each band, not rules. Equifax says it has no cut-off rating at all, and Experian does not publish bands that we could find. For the top of the scale, see what is a good credit score.
What usually drags a score down
A score is built from the contents of your file, so a low one is a clue to something specific. The usual suspects, based on what the reporters say they weigh:
- Defaults. A payment of $125 or more that went at least 30 days overdue, was chased, and was then listed. Defaults can be reported for five years from their date.
- Court judgments. A creditor took you to court and won. These can also be reported for five years.
- Late payments. Repayment history is recorded for two years, so recent late payments show.
- Lots of applications. Enquiries sit on a file for four years, and Centrix says many in a short time can lower the score.
- Insolvency. A bankruptcy or No Asset Procedure is reported for four years from discharge. Equifax does not score files with it on, and Centrix gives no score while you are insolvent.
- A thin history. Not much data can mean a middling result even with no bad marks.
Reading your report will show which of these applies. Our guide to checking your credit score walks through getting it.
Why the reason matters more than the number
Two people with a score of 500 can look very different to a lender.
One has a single default from four years ago for a phone bill, a steady job since, and every payment on time for 18 months. The other has three recent defaults and several declined applications this year. The score is similar. The story is not, and a car lender is deciding on the story: can this person repay this loan from today’s income?
Equifax says as much in its guide. A lender can extend credit despite a low score, or decline despite a high one. That is why the sensible questions to ask yourself are:
- How old is the most recent problem?
- Have I been paying everything on time since?
- Is my income steady, and does the loan I want fit inside it?
- Do I have a deposit, or a car worth something to trade in?
What a low score usually means for the loan
Honest answer: it can mean a smaller range of lenders, a higher interest rate, more fees, or a request for a deposit or a guarantor. Those are real costs, and they are worth seeing in numbers before you go further. Take a $9,000 loan over three years. At 10% interest the repayments are about $290 a month and you pay roughly $1,455 in interest. At 20% they are about $334 a month, roughly $3,041 in interest. At 30% they are about $382 a month, roughly $4,754 in interest. These are round illustrative figures, not offers, and real loans also have fees.
The gap between the first and third is more than $3,000 on a $9,000 car. That is why raising a score, or at least cleaning up the file before a lender sees it, can pay for itself. It is also why it is worth being careful with how a car is financed. Our guide to car loans with bad credit covers lender types and what to ask.
How the clock works on a low score
Each item has its own timer, and the timers are set by the Credit Reporting Privacy Code, so you can work out roughly when the weight lifts. Say a default was listed in March 2023. It can stay on your file for five years from the date of the default, which takes it to March 2028. A paid default does not come off early, but it shows as settled, and a few years of on-time payments since then will outweigh it for many lenders. A judgment runs for five years from the date of the judgment. An enquiry runs four years. Repayment history is only kept for two years, which is good news: recent mistakes are forgotten faster than old defaults.
It also helps to know that some things are not on your file for ever, and some are not on it at all. Where you live, your job and your salary are not part of the Equifax score, for example. So if you are worried that a low score reflects who you are, it does not. It reflects how credit accounts on your file have been paid.
What you can do, and in what order
- Get all three reports and read them. Look for errors first. A debt that is not yours is the fastest thing to fix.
- Settle what you can. Centrix says paying a default reduces its negative impact over time, even though the entry stays for its full period.
- Stop applying everywhere. Each lender check leaves a mark. Apply once, with a clear picture of your file.
- Build a run of on-time payments. Repayment history is recorded, so a clean few months helps.
- Add up what you can afford. Work out a weekly figure before you look at cars.
- Ask for free help if money is tight. MoneyTalks on 0800 345 123 is free and confidential.
None of this is a trick. It simply gives a lender less to worry about.
Looking after yourself while you sort it out
A low score can feel personal, but it is a record of how accounts were paid, often during a bad patch such as a job loss, a relationship breakdown or an illness. If it is weighing on you, talk to someone. MoneyTalks and Citizens Advice can help with the practical side, and a budgeter can contact lenders for you to agree a payment plan, which can stop a debt turning into a default.
If you are bankrupt right now
This site cannot help while you are bankrupt. Once you are discharged, or a No Asset Procedure has ended, some lenders will look at your situation. Discharge is the starting point, not a promise.
When you are ready
If your file is as clean as you can get it and you want to see what might be possible, try our four-question check. It is free, it is not a credit application, and a real person calls to talk through your options. Lenders make their own decisions and nobody can promise approval. You can read how we are paid on our disclosure page.
Sources
Common questions
Centrix, the only reporter that publishes a band table, calls scores from 1 to 512 Poor and 513 to 668 Fair. It says people in the Poor band are more likely to be turned down by most lenders. Other reporters use their own scales, so a low number at one is not the same as at another.
Sometimes. Equifax says a lender can offer credit even though a score is low, because it also looks at your income, your costs and its own policies. Nobody can promise approval, and a loan may cost more than it would with a better file.
No. Centrix gives no score if you have no credit history, are under 18, have a hardship status recorded, or are currently insolvent. A missing score is a different situation from a low one.
It depends on what is dragging it down. A default can be reported for five years from its date, but its effect fades as time passes and as recent payments are made on time. Fixing a mistake can help straight away.
No. Asking for your own report is not an enquiry from a lender and does not change your score. What can hurt is making several credit applications in a short time.