When looking for a job in New Zealand, your employer may conduct a credit check on you.
However, some job seekers feel that while on the one hand it is about whether or not the employer will hire them, on the other hand, in some cases, these surveys can be a bit too rigid and offensive.
So, who has the right to view your records, and how will they affect your job search?
"Why do retail jobs also need to do credit checks?"
A Bay of Plenty lady was applying for a part-time job as a warehouse shelf worker and when she saw a "credit check" option on her application form, she immediately didn't want to apply.
"I don't have any credit issues to hide, but it's a bit offensive and too much, and if I'm applying for a position at the Finance or Tax Bureau, it's fine, but I'm just applying for a warehouse replenishment clerk now. ”
Another woman, who did not want to do so, said she had suffered a lot because of the "credit check".
"I had my ID card stolen before, and some unsettled installments were put in my name, which caused my credit history to be a bit bad. ”
She was applying for a retail/sales position, and her employer asked for a credit check and a background check, and after telling her about her experience, she was rejected.
"I was honest about my credit history and naively thought it would be good for my job search, but I was wrong. I'm disappointed, it makes me feel so bad. ”
Credit Check:
"A very blunt tool"
In response to such surveys, recruitment company bosses said that credit checks are usually used when hiring for jobs that deal with money, such as front desk and accounting.
Phil Van Syp of 1st Call Recruitment said that the more information collected about job seekers, the better, and employers often set their own requirements, but there is a fee for a formal credit check.
Unfortunately, he said, there are employees who embezzle the company's assets, so that's why they do background checks and credit checks.
However, in general, for jobs like workers, which do not touch money, credit checks are not necessary.
Success Group的Graham Rodgers认为，查犯罪记录比查信用记录更常见。
"You also have to consider the authenticity of a bad credit rating, because someone can have a credit rating down because they haven't paid a traffic fine, and in general, it's a very blunt tool. ”
Carolyn Young, CEO of Retail NZ, said few employers come to ask about credit checks, but many will focus on employee theft and what to do with procedures.
She said that the first step in the credit check is to get the consent of the respondent, and the employer will also pay a certain cost, so they will weigh the cost before deciding whether they need to go through the process.
For example, some employers have indicated that they will only do credit checks on job seekers who have access to the in-store management system, finance and inventory systems if they agree, and store assistants will not do it.
Who can look at your credit history
According to the Privacy Commission, only certain persons will be able to access your credit report for a specific purpose.
For example, a landlord who rents to you, someone who insures you, someone who collects a debt from you, someone involved in court proceedings, and a public sector agency that acts in accordance with the law all have the opportunity to check your credit report.
And if you're applying for a position that involves significant financial risk, your potential employer may also be able to see your credit history with your consent.
New Zealand's Ministry of Business, Innovation and Employment says that whether your credit is good or bad or has no record at all, it can affect your life.
What to do if you have a negative credit history
Centrix, one of the credit reporting agencies, says that bad records stay in your file for 5 years, but over time, it will have less impact on your credit rating.
According to the regulations, there is a bad record when the amount in arrears exceeds NZ$120, and paying liquidated damages will reduce the negative impact.
However, under the Bankruptcy Act 2006, multiple bankruptcies can leave an inexpellable record in your credit history.
"A credit report will include credit scores and credit behaviors, including defaults and bankruptcies, to show how well an individual manages their finances. ”