5 Credit Myths You Need to Stop Believing
When it comes to borrowing money in New Zealand, bad advice is everywhere—and believing the wrong thing can cost you.
At Mr Finance, we talk to Kiwis every day who’ve been held back by credit myths. So let’s set the record straight.
Credit Myths You Need to Stop Believing
- “Checking my credit score will hurt it”
Not true.
Checking your own credit score through providers like Centrix, Equifax, or Illion is completely safe. These are soft checks and won’t impact your score.
What does hurt?
Multiple loan applications in a short time.
Mr Finance Tip: Check your credit regularly – it’s one of the smartest financial habits you can build. It also helps you get a better idea of what behaviours are improving your score, and what things are hurting it. For example, paying your bills on time really helps!
- “If I’ve been declined, I’ve got no chance”
A decline is not the end of the road.
Lenders assess your current financial situation, not just your past. We regularly help clients get approved after improving things like:
- Repayment history
- Debt levels
- Income stability
The right structure and lender make a huge difference.
- “All debt is bad”
Debt isn’t the problem – unmanaged debt is.
- Smart debt: Home loans, business lending
- Risky debt: Payday loans, high-interest short-term lending
Mr Finance Tip: The goal isn’t to avoid debt—it’s to use it wisely.
- “Paying off a loan fixes everything instantly”
Paying off debt helps, but credit improvement takes time.
Lenders want to see consistent, responsible behaviour over months, not days.
- “I don’t need a credit history”
In New Zealand, having no credit history can actually work against you.
Even small things like:
- Phone plans
- Power accounts
- Buy-now-pay-later (used responsibly)
…help build your profile.
Need Help
Before you apply anywhere, talk to a team that knows the NZ lending landscape. We are based in Christchurch, with an experienced team that understand our clients and your financial challenges.
Get in touch with Mr Finance today
We’ll guide you through your finance options safely and honestly.
