Bank job offer & poor UK credit history

Koalabear

I have had two credit cards outstanding for over 5 years, and both accounts have been sold Hoist Finance and similar – these two debts are a result of a personal dispute with my ex-partner, and I admit that I’ve been very complacent about getting the matter resolved and I am now worried sick that this will impact on my ability to secure a position with a bank offshore. I have no IVAs, CCJs and have never been declared bankrupt and I have never defaulted on my mortgage repayments (which I’ve had since 2007). Also, a few months ago I managed to get approved for two credit cards which I’ve only been using for the purpose of improving my credit history (pay them off in full religiously every month) and also set up an overdraft on my current account (again, unused) with my notoriously strict provider. However, back to the main point, whereas my credit score in the UK seems to be improving, there is still the matter of the outstanding credit cards and to what extent the credit checks will be carried out – full credit check or only CCJs, IVAS etc?

DCFC79

Koalabear wrote: »

I have had two credit cards outstanding for over 5 years, and both accounts have been sold Hoist Finance and similar – these two debts are a result of a personal dispute with my ex-partner, and I admit that I’ve been very complacent about getting the matter resolved and I am now worried sick that this will impact on my ability to secure a position with a bank in New Zealand. I have no IVAs, CCJs and have never been declared bankrupt and I have never defaulted on my mortgage repayments (which I’ve had since 2007). Also, a few months ago I managed to get approved for two credit cards which I’ve only been using for the purpose of improving my credit history (pay them off in full religiously every month) and also set up an overdraft on my current account (again, unused) with my notoriously strict provider. However, back to the main point, whereas my credit score in the UK seems to be improving, there is still the matter of the outstanding credit cards and to what extent the credit checks will be carried out – full credit check or only CCJs, IVAS etc?

I have found very little information online, and often conflicting accounts – within one thread, two posters said that the bank will only look at NZ credit history (which obviously won’t return anything), whereas another poster (different thread) mentioned that she had her UK credit history checked. Both related to employment specifically, as I understand that for borrowing one’s UK credit history is not taken into consideration.

Does anyone know what actually happens? The company being used for background checks is First Advantage.

Your score is only seen buy yourself, your history is what lenders and relevant future employers can see.


How far do First Advantage check ?
Have you applied for the job ?


If yet not applied have you asked the bank ?

Koalabear

Yes, I have applied and it's been a gruelling process with three interviews, tests etc. To be perfectly honest, I had read about what happens to your UK credit history when you move and (wrongly) assumed that it would be the same with any pre-employment credit checks.

I have no idea what First Advantage check for and I've found nothing concrete online. In fact, unlike in the UK where you need to answer questions pertaining to your credit history upfront (i.e. have you ever been declared bankrupt etc), there is been no mention of it anywhere. Some NZ banks include a disclaimer for some job roles to say that credit checks will be required (mostly branch staff and sales roles) within the job advert but the bank I've applied for never mentions it anywhere. The description of their recruitment & selection process only says 'background checks' which is the very last stage.

Koalabear

I've checked and there are two entries under 'default accounts', both relating to the same credit card. The first is from when it was with Barclays and then the second with Hoist. The total showing is £5,333.00. If I had the funds, I would just pay it off now but I am assuming that the default would still stay there for another few years...?

[Deleted User]

I know in the UK "reference" agencies like HomeLet can't actually see the credit file (other than public info like CCJ/Bankruptcy) - but they give the impression they can.

I would assume it's the same with these First Advantage lot. However, does your employer do any business in the UK? If you're checked by them, they could obviously see all.

I'd just tell the truth upfront - IF they do manage to get a full UK report and find out you've lied then you're really in trouble - plus if you're added to CIFAS (the NZ verion!) then you've relocated AND got a fraud marker against you.

My employer described the credit check as essentially an "honesty test" - as long as nothing was outstanding now, they said I'd be fine. So I wrote war and peace about Bankruptcy and they (eventually) approved it. That was a full credit search as it was a UK employer.

Default will stay there until 6 years from default date whether you pay it or not - however based on what my HR said, it would help to have it paid off (i.e. nothing anyone can come after you for). Given you will be half way across the world, I doubt they'd be SO keen to get it paid - but they might look at it negatively from a financial integrity viewpoint - but what's done is done, you can't really change that now.

Even if you haven't been asked whether you have defaults/BR etc - somewhere within the contract it probably says about good financial standing or similar. I'd say it's a massive risk to not declare it unless it's fully dropped off (after the 6 years)

Koalabear

Thank you.

I wasn’t for a moment thinking of lying or trying to hide. We are the reference check stage (which oddly is used as part of the selection process) so offer and no background check as yet.

In the meantime (better late than never), I’ve writtem to the collections agency to get a repayment plan in. It was very stupid and irresponsible of me to hope that it would go away, but at least it shows that it’s beong dealt with.

On a separate note, I’ve noticed that my mortgage account doesn’t appear on my credit report which is strange seeing that I’ve had it since 2007???

marcadona

Hi Koalabear, I am sending you good luck and hope you get the job. HOWEVER I find it very confusing and wrong that people from New Zeland can post here. It confuses everything. This must stop.

[Deleted User]

Best of luck with it all! Very different culture to over here it seems doing it that way round!

Have you checked all 3 files? Smaller lenders don't appear on Equifax, I guess there could be some that don't appear Experian etc. Some lenders don't report to any CRA unless the account drops into arrears, but I'd be surprised if any mortgage lenders did that!

Very old accounts don't appear as there was no data-sharing arrangement, but any mortgage taken or renewed (product switch) as late as 2007 should be on at least 1 agency.

Koalabear

Thank you for your kind words!

Btw, I am not from New Zealand. I am looking to relocate to New Zealand, hence my questions about my UK credit history and my UK credit report.

My mortgage is with Nationwide, so I’ve written to them and to Experian asking for my information to be updated as a matter of urgency. If nothing else, it’ll show that I’ve paid my mortgage religiously for 11-12 years...

pandora205

Try asking on British Expats NZ forum. There are very knowledgeable people on there who will have been through all the visas and reference checks.

Uberior

Not every bank or building society reports secured debt. You can't force an organisation to supply data when there isn't a contract (or need) to do so.



My home loan, since repaid, was never reported to Experian or Equifax and the bank didn't even register a charge over the property.