Consumers have developed a less risky attitude to credit during the past year, Veda Advantage data shows.The company today said a review of its VedaScore Plus consumer credit scorecard, taking in 1.26 million consumer credit records from July 2009 to Marc
Consumers have developed a less risky attitude to credit during the past year, Veda Advantage data shows.
The company today said a review of its VedaScore Plus consumer credit scorecard, taking in 1.26 million consumer credit records from July 2009 to March 2010, showed the general population's risk-profile had improved by 12 percent.
Veda Advantage managing director John Roberts said there was a range of explanations for the change in risk profile.
"It could show that people are paying off debt or that fewer people are actually taking on credit or a combination of both factors. Ultimately this behaviour will manifest itself in 12 to 24 months time when we will see fewer people defaulting on payments," Mr Roberts said.
"These findings may also reflect the cut-back in the amount of credit being offered to people by banks and finance companies -- and it could be only those low-risk applicants who are now being offered credit in the first place."
Veda said its bureau statistics showed credit inquiries were down 10.4 percent for the first six months of this year compared with the same period in 2009. Defaults increased by 18.3 percent.
"We believe this shows the impact of the credit crunch -- as we move out of one of the most devastating financial crises New Zealanders have endured they are becoming less risky to lend to while at the same time fewer people are applying for credit," Mr Roberts said.
