New Zealand: Impact of COVID-19 on Consumer Credit Applications
Our New Zealand member Centrix has sent the latest update on regulation concerning the impact of COVID-19 on Consumer Credit Applications.
As of their latest update Credit Scores are falling sharply: Centrix score is a leading indicator of default risk, average scores on application enquiries have dropped 28points since the global outbreak of COVID-19. Credit demand crashes by 65%.
Consumers with high scores are no longer as active whereas credit demand in low score segments remain strong. Product mix is shifting which is contributing to the drop in score. Personal Loans and Auto finance has dropped sharply in last 2 weeks. Mortgages down this week also.
It is still too early to observe any COVID-19 impact on arrears levels or Hardship flags as reported in Comprehensive Credit Reporting (CCR).
For further details please click on this Link.
About: Centrix has been formed to provide more choice in the New Zealand credit reporting sector. We leverage the combined breadth of information of our business partners and search numerous data sources to deliver a high value product for our subscribers. We welcome your business and we won’t charge you any joining fees or annual fees. Our prices are very competitive and you only pay for what you use – just as it should be.
In New Zealand, credit scoring is becoming increasingly used as the primary method of assessing creditworthiness. Credit scoring is used not only to determine whether credit should be approved to an applicant, but for setting of credit limits on credit or store cards and other lines of credit.
Centrix Group
PO Box 62512, Greenlane
Auckland 1546
New Zealand
TOLL FREE 0800 236 874
Phone +64 9 966 9706
