A quick guide to credit history, scores, and reports

Why does my credit history matter to a power company?

When you apply for a new power plan, the power company will look into your credit or payment report. Here's what they might look out for:

• Defaults, how long you've held an account, or patterns of late payments: These show how reliably you’ve paid bills in the past, which helps the power company assess how likely you are to pay your bills.
• How long you've had credit accounts: A longer credit history gives the power company more information about your financial behaviour over time.

Power companies will ask that you have valid identification to confirm who you are and where you live.

What will a company say if I have a poor credit history?

If a power company raises an issue with your credit report, they may respond in one of the following ways:

• Request a bond or security deposit before you’re accepted. If you pay a bond, it must be refunded after a year of paying all invoices on time.
• Offer prepay (if available) rather than a standard post-pay plan.
• Decline the application, in which case they must provide you with the reason, a reference website to compare other plans, and contact details of support agencies. 

If you feel the decision is unfair, you can contact Utilities DisputesExternal Link, opens in a new tab (0800 223 340) for free, independent advice.

What if I’m turned down for a power plan?

If you are declined for a power plan, that power company must treat you fairly and work with you to find suitable power options. Remember:

Payment options: Missed or late payments are often associated with poor credit. If you are finding it hard to pay your power bill, it's really important to talk to your power company early. They can usually set up a payment plan to help you stay connected or put you in touch with financial mentorship to help you. If you're finding it hard to pay your power bill, learn more about your options.

Prepay plans: If you are declined due to poor credit history, prepay plans don't require credit checks. They can help you stay connected while you rebuild your credit rating. Read more here

Are there ways to support a good credit score?

While it might take time, you can strengthen your credit score with a few consistent habits:

• Pay on time: Set reminders or automate payments for your bills. You can speak to your credit company to arrange payment plans that favour a positive credit history.
• Keep communication open: If you’re struggling, tell your power company early. They must consider affordable payment options or refer you to a budgeting agency.
• Limit new credit applications: Too many credit checks can reduce your score.
• Show progress: If you’re working with a financial mentor or paying on time for several months, let your power company know – many will take your consistent efforts into account.

More resources

Check your credit score for free: There are three main credit check companies in New Zealand: CentrixExternal Link, opens in a new tab, EquifaxExternal Link, opens in a new tab, and ExperianExternal Link, opens in a new tab. You can get your own credit report for free from any of these companies, making it easy to check in on your credit status.

Understanding your rights: Learn more about what credit records are, how you can check yours, and what legal rights you have through the NZ Government.External Link, opens in a new tab

Getting your credit sorted: For more details on how credit reports work, who checks them, and how to keep a clean credit record, visit SortedExternal Link, opens in a new tab.