Building a credit score in NZ
#1
Forum Regular
Thread Starter
Joined: Feb 2016
Posts: 105
Building a credit score in NZ
Hi, i did a search but the most recent thread related to this was from 2008! I guess a lot may have changed since then lol.
So, basically, what's the best way to build my credit rating when i arrive in NZ? We eventually would like to buy a house and want to be in the best possible position to do that, i understand that we'll almost definitely need a 20% deposit to buy anyway, so that'll take a year or so to have enough savings. Also, as we won't be able to bring our car from the UK, we'll need to buy another once there too, which we'd probably need to finance.
Thanks
So, basically, what's the best way to build my credit rating when i arrive in NZ? We eventually would like to buy a house and want to be in the best possible position to do that, i understand that we'll almost definitely need a 20% deposit to buy anyway, so that'll take a year or so to have enough savings. Also, as we won't be able to bring our car from the UK, we'll need to buy another once there too, which we'd probably need to finance.
Thanks
#2
Re: Building a credit score in NZ
Hi, i did a search but the most recent thread related to this was from 2008! I guess a lot may have changed since then lol.
So, basically, what's the best way to build my credit rating when i arrive in NZ? We eventually would like to buy a house and want to be in the best possible position to do that, i understand that we'll almost definitely need a 20% deposit to buy anyway, so that'll take a year or so to have enough savings. Also, as we won't be able to bring our car from the UK, we'll need to buy another once there too, which we'd probably need to finance.
Thanks
So, basically, what's the best way to build my credit rating when i arrive in NZ? We eventually would like to buy a house and want to be in the best possible position to do that, i understand that we'll almost definitely need a 20% deposit to buy anyway, so that'll take a year or so to have enough savings. Also, as we won't be able to bring our car from the UK, we'll need to buy another once there too, which we'd probably need to finance.
Thanks
#3
MODERATOR
Joined: Oct 2011
Location: Wellington - I miss Castles, the NHS & English school system
Posts: 9,077
Re: Building a credit score in NZ
no need for credit rating here, if you can show you have full time permanent work then all good
#4
Re: Building a credit score in NZ
There are assorted 'what you can borrow' calculators on the various bank websites. <---- click link.
It will be primarily based on your earnings , your outgoings & any debt you will have. So if you buy a vehicle on credit that will reduce what you can borrow.
It will be primarily based on your earnings , your outgoings & any debt you will have. So if you buy a vehicle on credit that will reduce what you can borrow.
#5
Re: Building a credit score in NZ
You don't need credit history from the UK or anywhere else for that matter. The banks etc just aren't interested. You'll just start all over again with a clean slate so to speak and they'll consider you, how much you earn, your outgoings and offer finance up to your affordability. They'll also consider the type of visa you are on, so for example if you are on a temporary visa for 5 years you will only get finance for the balance of years/months up to when your visa expires. If you are on a permanent visa then you should be ok to have a loan for any period you wish.
To build your credit here, I'd consider the little things that you wouldn't generally think as finance......
Mobile phone on a monthly contract.
Sky TV, house insurance, car insurance, energy account (gas / electric) etc. These are all finance agreements and will assist.
To build your credit here, I'd consider the little things that you wouldn't generally think as finance......
Mobile phone on a monthly contract.
Sky TV, house insurance, car insurance, energy account (gas / electric) etc. These are all finance agreements and will assist.
#6
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Joined: Jul 2008
Location: Auckland
Posts: 463
Re: Building a credit score in NZ
Hi, i did a search but the most recent thread related to this was from 2008! I guess a lot may have changed since then lol.
So, basically, what's the best way to build my credit rating when i arrive in NZ? We eventually would like to buy a house and want to be in the best possible position to do that, i understand that we'll almost definitely need a 20% deposit to buy anyway, so that'll take a year or so to have enough savings. Also, as we won't be able to bring our car from the UK, we'll need to buy another once there too, which we'd probably need to finance.
Thanks
So, basically, what's the best way to build my credit rating when i arrive in NZ? We eventually would like to buy a house and want to be in the best possible position to do that, i understand that we'll almost definitely need a 20% deposit to buy anyway, so that'll take a year or so to have enough savings. Also, as we won't be able to bring our car from the UK, we'll need to buy another once there too, which we'd probably need to finance.
Thanks
There are not the same things (at the moment) in NZ. When assessing you for credit they will take into account your income and outgoings but visa type will have an impact - anyone on a temporary visa will be considered a higher risk of non-payment.
I can't think of any specific must-do things here - for example being on the electoral roll in the UK is pretty much essential for getting credit there but it is not the same here. Providing three months of bank statements is the only thing I can remember having to do to get a mortgage here - but that mortgage was through my normal bank so they already knew a lot about me.
#7
BE Enthusiast
Joined: Jun 2013
Location: Perth
Posts: 623
Re: Building a credit score in NZ
Hi, i did a search but the most recent thread related to this was from 2008! I guess a lot may have changed since then lol.
So, basically, what's the best way to build my credit rating when i arrive in NZ? We eventually would like to buy a house and want to be in the best possible position to do that, i understand that we'll almost definitely need a 20% deposit to buy anyway, so that'll take a year or so to have enough savings. Also, as we won't be able to bring our car from the UK, we'll need to buy another once there too, which we'd probably need to finance.
Thanks
So, basically, what's the best way to build my credit rating when i arrive in NZ? We eventually would like to buy a house and want to be in the best possible position to do that, i understand that we'll almost definitely need a 20% deposit to buy anyway, so that'll take a year or so to have enough savings. Also, as we won't be able to bring our car from the UK, we'll need to buy another once there too, which we'd probably need to finance.
Thanks
#8
Forum Regular
Joined: Sep 2016
Posts: 70
Re: Building a credit score in NZ
I opened a westpac bank account. I pay into it over the coming months and activate when I move to NZ. They also offered me a credit card. Just need my job offer and passport and upto date current credit card statements. Seems straightforward.
#9
MODERATOR
Joined: Oct 2011
Location: Wellington - I miss Castles, the NHS & English school system
Posts: 9,077
Re: Building a credit score in NZ
I personally would not depend on the fact and always budget to have the 20%, if you don't need it then you at least have the money to get a smaller mortgage.
#10
Forum Regular
Joined: Jul 2014
Posts: 264
Re: Building a credit score in NZ
Paddy bought house and land and so outside the lvr restrictions so you can rely on less than 20% deposit. Signature homes even do a 5% deposit build package. Buying an existing house is a different ball game and 20% is almost certain (check out the 10% welcome home loan if you comply, kiwisaver for 3+ years hardest condition). The premiums you get charged if they do agree to less than 20% are pretty hefty
#11
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Joined: Apr 2008
Location: Epsom
Posts: 1,705
Re: Building a credit score in NZ
You can't build a credit score in NZ, the system only really works on negative reporting. As a new immigrant (or new credit customer) you have a perfect rating already.
You only get negative marks on your record by defaulting on debts and also they do stuff like check how many times you've applied for credit in the last 12 months.
You only get negative marks on your record by defaulting on debts and also they do stuff like check how many times you've applied for credit in the last 12 months.
#12
Re: Building a credit score in NZ
There is a score actually on the top of your Veda report (0 or negative being terrible and 1000 being the highest score, default score is 500) but lenders ignore the score and look for any negative credit events (defaults etc.)
The reason there isn't many threads on this topic is it's mostly a non-issue. Factors like the type of visa you are on, duration of employment, type of employment contract, duration of residency, account conduct etc. are weighed much more heavily than credit reporting. As long as nothing negative shows up you'll clear that hurdle easily.
The reason there isn't many threads on this topic is it's mostly a non-issue. Factors like the type of visa you are on, duration of employment, type of employment contract, duration of residency, account conduct etc. are weighed much more heavily than credit reporting. As long as nothing negative shows up you'll clear that hurdle easily.
#13
BE Forum Addict
Joined: Apr 2008
Location: Epsom
Posts: 1,705
Re: Building a credit score in NZ
There is a score actually on the top of your Veda report (0 or negative being terrible and 1000 being the highest score, default score is 500) but lenders ignore the score and look for any negative credit events (defaults etc.)
The reason there isn't many threads on this topic is it's mostly a non-issue. Factors like the type of visa you are on, duration of employment, type of employment contract, duration of residency, account conduct etc. are weighed much more heavily than credit reporting. As long as nothing negative shows up you'll clear that hurdle easily.
The reason there isn't many threads on this topic is it's mostly a non-issue. Factors like the type of visa you are on, duration of employment, type of employment contract, duration of residency, account conduct etc. are weighed much more heavily than credit reporting. As long as nothing negative shows up you'll clear that hurdle easily.
Nice little earner in Aus/NZ for Veda if they make a few hundred thousand people paranoid about their credit score and get them paying subscription fees.