In the world of credit scores, we like to refer to those with a score of more than 900 as unicorns. They are rare and until now, almost mythical beasts, and only 9.2% of all Kiwis can call themselves a credit unicorn.

Everyone has a credit score. It’s a number between zero and 1000 that credit providers and banks use to determine how credit worthy you are.

The higher your score, the more likely credit providers are likely to lend to you and give you better interest rates to boot, says Credit Simple CEO David Scognamiglio.

“A good score can be the difference between getting a mortgage or not, and getting great deals on insurance, power and utility contracts,” he says.

“Until recently, your credit score was determined only using bad credit behaviour. Miss a credit card payment or pay your power bill late and your score would take a dive. Paying your bills on time and paying loans off in full, while the right thing to do, had little impact on your credit score. Your score wouldn’t drop, but it wouldn’t necessarily get any better, either.”

Comprehensive credit reporting is a new thing in New Zealand, meaning banks such as ASB and Westpac have recently started including the good stuff, like paying bills on time or early, on your credit file. More banks will soon follow suit. Finally, Kiwis are getting kudos they deserve for good credit behaviour and we’re stoked to be able to welcome more unicorns into the club.

The best part? Comprehensive credit reporting means Kiwi credit scores are beginning to rise, which means stronger negotiating power with credit providers and better deals for everyday Kiwis.

Are you a credit unicorn? Check your credit score now and find out.

The post 9.2% of all Kiwis are credit unicorns. Are you one of them? appeared first on Credit Simple NZ.