[Ashby]

Can anyone clarify how credit in NZ works?
I say that our American credit is gone when we leave America--for better (if you have bad credit) or worse (if you have diligently maintained your credit rating).
I say that we bring reference letters from our creditors with us (to open bank accounts, etc).
My OH can not believe this is true. He can not seem to wrap his head around the idea that the American credit system does not encompass the entire world. I tried to illustrate the point with the fact that we use (american) social security numbers to track credit in this country and that NZ could care less about our social security numbers. He won't believe me.
Thought if I posted this as a specific question and got some responses that I could show him, he would be satisfied.
Thanks in advance!

[SarahEDH]

Hi Ashby,

I can confirm that when I arrived and opened accounts, rented cars, signed up for mobile phone, rented housing, etc., no bank or other business entity in New Zealand ever asked for my SS# or conducted credit checks based on U.S. information. The bank seemed more interested in verifying my identity (through passport and PR stickers) and contact info (home address and phone number) than anything else. Generally, if you've got some money they're happy to let you open an account :)

Hopefully those who have applied for a mortgage, car loan or long-term property lease can tell you if they were asked to show proof of timely payment on their U.S. loans or rental agreements. Also, some car insurance companies are said to give lower rates if you can show proof of no claims /accidents/tickets in the last 3-5 years.

Hope this helps --

Sarah

[jess]

Seconding what Sarah said about banks.

But for our mortgage, they did do a credit check on us which our mortgate broker said would include our Equifax credit report in the US. I did not get a car loan, so don't know about that.

When we got our car insurance from State the agent just asked me if we had been in any accidents in the last five years. We had not, but if he ever verified the info in any way I didn't know about it.

[kanatakiwi]

As to car loans and vehicle insurance,both my OH and Ihad to oprovide a driving abstract from Canada (easy to get from the govt run insurance company in BC) once they emailed that through ( got it in one day), we had no further stumbling blocks. Not sure about mortgage and loans as we dont have, but OH applied and got credit card here with no checks about credit in Canada, based on what we have in the bank (which is not much i can tell you:D )

[Ashby]

Thanks for the info.

Now, wonder what our Equifax report looks like.....

Just in case!

[Angelonthemove]

We are from th UK and we did not have to provide anything in the way of references.

NZ does not have a positive credit rating you either are bad or normal. So systems elsewhere where you can improve your credit rating do not apply here.

Just for the record You do NOT need PR to open banks accounts, get credit cards, car loans (only the length of your visa) or mortgages if you have a 20% deposit. If you have no deposit for a 100% mortgage you need PR.

[Ashby]

So everyone starts off as normal and then can be demoted to bad--if they deserve it??

[Familyofmonkeys]

We brought experian credit checks with us from UK just in case...only cost £2, and would be more hassle to get info later if needed...only been used once so far though.

[constablechuck]

When we leased a flat and got credit cards in NZ they only checked our credit with a NZ credit bureau, our U.S. credit history was never checked and counted for nothing.

I think that the NZ Drivers License number is used to identify credit history similar to the way SS# is used in the U.S.

In my experience the Banks in NZ prefer to give credit to customers that bank with them, when we applied for credit cards we were quickly approved by the banks where we had accounts and denied by the banks where we had no accounts.