You’ll need to have a credit check run on you any time you apply for a loan, hire purchase, credit card, store card or line of credit. The organisation lending you the money, also known as the credit provider, will ask your permission to obtain a credit check. The credit check is provided by a credit reporter, also known as a credit bureau, that reports on how well you’ve met your financial obligations in the past.
This can include details about your:
- credit cards
- arranged overdrafts
- personal loans
- car finance
- hire purchases
- repayment history for your phone and power accounts.
Positive credit reporting
Kiwibank participates in positive credit reporting. This means we report on the type and amount of credit you’ve received and how your repayments are going.
In the past, your credit check only took into account “negative” behaviour, which means the credit reporters would only report on the times you failed to meet your obligations. They may have also calculated a credit score from this information, together with other credit activity on your file, such as previous enquiries from credit providers.
This change provides a clearer picture of your finances, and shows if you've recovered from credit difficulties in the past. It may also help lower the cost of credit in time, as lenders will have a better ability to judge risk.
Your personal and financial information is still covered by the Privacy Act. For more information, check out the Privacy Commissioner’s website.