Zip has updated its Customer Terms and Conditions to align with new Buy now, pay later regulations which came into effect on 2 September 2024.
As part of our commitment to responsible lending and supporting Pay in 4 customers with their financial goals, we’ll complete a credit check before increasing a customer’s spend limit.
You can find a summary of the changes to our Pay in 4 Terms and Conditions here.
Credit checks and credit reporting: what it means for customers
Before conducting any credit checks or providing information to a credit bureau, we collect your consent. You only need to provide consent once. It is important to note that performing a credit check before approving a new customer or an increase to a spend limit is a mandatory requirement. Customers can opt-out of receiving automatic increases to the Spend Limit by contacting Zip.
New Pay In 4 customers - Zip conducts a credit check as part of its approval process for new customers before setting the Customer’s initial Spend Limit. The purpose of this credit check is to assess whether the spend limit is suitable for the customer. This credit check will appear on a customer’s credit file with a credit bureau, is visible on the customer’s credit file to other lenders and may impact the customer’s credit score.
Existing Pay in 4 customers – those who have an open Pay in 4 account – to assess a customer's eligibility for a Spend Limit increase, Zip will conduct a soft credit check (this means that the check does not appear on the customer’s credit file with a credit bureau and are not visible on the credit file to other lenders). The purpose of this credit check is to assess whether a spend limit increase is suitable for the customer.
Spend Limit increases:
Pay in 4 customers start with a lower spend limit and if the customer is eligible, Zip will automatically and incrementally increase the customer’s spend limit gradually over time. When assessing whether a spend limit increase is appropriate, Zip will consider factors including your payment history, and the information contained in the credit check.
Credit reporting
New and Existing Pay in 4 Customers - For new and existing Pay in 4 customers, Zip is required to report certain credit activities to credit bureaus. This helps maintain an accurate record of a customer’s credit history with Zip, including:
Account open date
On-time repayment status
Any overdue status
This applies to all customers.
Will credit checks impact my credit score? When you apply for a new Pay in 4 account with Zip, a credit check is performed which may impact your credit score and is visible on your credit file. Making consistent on-time payments with Pay in 4 may also positively impact your credit score. Late payments may lead to a negative impact on your credit score. Lenders may use this to assess your creditworthiness.
How to obtain a copy of your Credit Report:
You can request a copy of your credit report from Centrix: Apply here
Zip is not able to provide you with a copy of your credit report. If you think your Centrix credit report contains incorrect information, you can make a request to correct it by contacting Centrix directly.
Website: centrix.co.nz
Email: helpdesk@centrix.co.nz
Phone: 0800 836 274
Mail: PO Box 62512, Greenlane, Auckland 1546
Zip is not able to provide you with a copy of your credit report.
For more information on credit reports, you can visit govt.nz website.