Does Australian credit record follow you to New Zealand?

June 13, 2008 7:08 AM

I currently live in Australia, but my boyfriend and I are planning to move to New Zealand in the near future. Unfortunately, I went through a messy divorce so my credit record here in Australia isn't very good. We're moving overseas to leave the rat race behind and ideally have a fresh start, but I'm worried my bad credit is going to follow me.

I've done a bit of research, but have received mixed answers as to whether or not the credit travels. In fact, my boyfriend is actually from New Zealand and when he moved here he was told his credit would follow him, but when he recently applied for a loan the banker told him his New Zealand record doesn't matter. However, on the other hand, when I was doing my research, the same bank said "Yes, it follows you."

So, needless to say, I'm confused. Any info - perhaps personal experience - would be greatly appreciated!

Thanks in advance.

posted by anonymous to work & money (5 comments total)

Not knowing specifically about the banking situation in either country, I would suggest you look into what we in America call credit unions, which operate just like banks but are member-owned (ie, not accountable to shareholders other than members). We moved a little over a year ago from a bank to a CU and the difference in attitude - we aren't the wealthiest members, to put it delicately - is night and day.

You may find that a more helpful and more personal form of banking helps you both resolve whatever credit issues you may have, and allows you to develop a more personal relationship with the CU's employees over time, which may help when you need assistance later. YMMV.

NZ credit unions here (list of credit unions here), Oz here.
posted by mdonley at 9:06 AM on June 13, 2008

I was not in the same situation, but I was in a very similar one: I immigrated to Canada from the US.

In general my credit did not "follow" me and I was starting from scratch with my credit history. However, in buying a home (we're in the process right now), my American credit history was used by our broker and lender. So I guess my answer is, it depends. My American credit history is not my Canadian credit history, but it was used for my Canadian home purchase.
posted by kate blank at 9:33 AM on June 13, 2008

I can't speak specifically for New Zealand, but my experience is that Australian banks don't communicate well with their overseas counterparts. It's a lot of effort for them to track this information down. Of course, this can lead to the overseas banks just assuming the worst about everyone - if you're a fresh arrival in NZ, they may automatically treat you as a credit risk.

I don't think there's any specific cause to worry. If there was, what could you do about it but fret? Enjoy your fresh start.
posted by outlier at 9:40 AM on June 13, 2008

I spent some time living in New Zealand. The banks there did not know about, nor care about my (decent) credit back in the US.

I also noted that the lack of credit was much less of a problem in NZ than it would be in the US. The standard form of plastic there is a debit/eftpos card, and it doesn't seem like anyone gets a loan of any type (or a credit card) until they've established more than a short-term relationship with at least one bank, which sees the regular electronic depositing of your salary.

The blank-slate profile of the new immigrant did not present a problem in renting an apartment or setting up utilities and the like. It may have been a problem had we needed a car loan or mortgage.

That's just a data point. The integration between NZ/OZ is quite tighter than with other nations, bad news travels more than good, and some of the banks are the same or share ownership (Westpac), so ymmv.
posted by toxic at 11:21 AM on June 13, 2008

The two largest credit reporting companies, Dun & Bradstreet and Veda Advantage, operate in both New Zealand and Australia. I don't know whether they cross-match or share data between countries, but there's no reason why you can't get in touch and ask them.

Don't rely on Americans or Canadians telling you their credit history didn't follow them. Australia and New Zealand have much more tightly integrated economies and companies frequently operate in both markets.

Note that as far as I can tell, from my limited experience dealing with local credit reporting, your address and address history plays a big part. Eg if you download the form from these guys, they need your address. My suspicion is that not having ever lived in NZ, there's nothing to tie you to your Australian record, and so you'll effectively have a clean slate.

But like I said - the best thing to do is get in touch with the companies that operate here and ask them what will happen.
posted by i_am_joe's_spleen at 2:32 PM on June 13, 2008