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Your credit report
Saturday, February 20th, 2010Ever applied for a loan, a credit card or a telephone account? If you have, a credit reporting agency probably holds a credit report on you.
When you apply for a loan the credit provider can take your credit history into account when deciding whether to give you a loan.
What’s on your credit report?
Your credit report contains information about you and your credit history, including:
- personal details - name, date of birth, current and past addresses, employment and driver’s licence number
- credit applications - credit provider, amount of credit and type of credit (for example interest free loan, home loan, credit card)
- credit defaults - overdue payments of 60 days or more when you have been sent a letter notifying you of the default
- credit defaults that have been paid
- serious credit infringements or ‘clearout’ listings - this is when the credit provider has unsuccessfully tried to contact you in writing and has reported you as a missing debtor.
- information on the public record - for example judgment debts or bankruptcy orders
Your file cannot include information identifying your political, social or religious beliefs or affiliations; criminal record; medical record; ethnicity; or sexual preferences.
A credit reporting agency must take all reasonable steps to ensure you can access your report. You should be able to get a copy of your credit report for free by applying in writing to the credit reporting agency. This usually takes 10 days to send to you from the day they receive your application.
If you want it within a few hours, you can request a credit report via Chocolate by emailing enquiries@chocolatemoney.com.au or calling Chocolate Money on 1300 137 539. It will only cost $25 through Chocolate Money. click here
Alternatively, you can pay $29 via www.mycreditfile.com.au and receive your file in a few days via Veda.
Watch out for credit reporting scams
- Don’t search for credit reporting agencies over the internet, you may end up finding fake sites offering ‘free credit reports’ that are really out to scam you.
Check your personal details |
Getting it fixed |
| Are your names and addresses spelt correctly? Misspelt names and addresses might mean you have multiple listings for one loan application or have someone else’s defaults listed on your report. | Ask the credit reporting agency to fix any mistakes. |
| Has someone stolen your identity to apply for credit? If you believe someone else is using your identity to get credit you may be the victim of identity theft. Identity theft or fraud is a crime. | Report it to the police, the credit providers and the credit reporting agency. |
Check the accuracy and age of any listed credit defaults |
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| Were the defaults more than 60 days old when listed and did you receive a letter about the default before it was listed?How old is the listing? It can’t be listed for more than five years.Are they listed as paid or unpaid? | Inform the credit provider and the credit reporting agency of any mistakes and ask them to amend your credit report.Repay any outstanding credit defaults if you canWhen you pay, ask the credit provider and credit reporting agency to amend your credit report. The default credit will still be listed but will no longer be outstanding. |
Check the accuracy and age of any serious credit infringements, listed court judgments or bankruptcy orders |
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| Is something listed as a serious credit infringement when you were contactable and weren’t trying to avoid the debt? This shouldn’t be listed as a serious credit infringement.How old is the credit infringement listing? It can’t be listed for more than seven years. | Contact a consumer credit legal centre if there is a mistake.Inform the credit provider and the credit reporting agency of any mistakes and ask them to amend your credit report. |
Unable to fix inaccuracies?
If you are unable to fix any inaccuracies on your credit report you can also take your complaint to:
- an independent complaints scheme for complaints about banks or credit unions
- the Telecommunications Industry Ombudsman for complaints about phone companies
- the Office of the Federal Privacy Commissioner for all credit reporting complaints
Your credit future
Your credit report is just one factor a credit provider may take into account when assessing your application for a loan. Other factors may include your employment, your income, your savings and any existing liabilities.
If your loan application is rejected ask the credit provider to explain exactly why. You cannot rewrite your credit history but you can try to create a brighter credit future if you use credit wisely and regularly check your credit report.
Also, by using a reputable finance broker, like Chocolate Money, will significantly enhance your chances of obtaining a loan. Make sure that if you do use a broker, they are accredited with the Mortgage & Finance Association of Australia, Members of the Credit Ombudsman Service and not a ‘1 person broker’ but are a larger, reputable mortgage broking organisation.
Your privacy, credit providers and credit reporting agencies
Common credit providers are banks, building societies and credit unions. However credit providers also include:
- businesses that issue store credit cards, e.g. department stores.
- businesses that provide a good or service and allow payment to be deferred, for example, telephone, gas and electricity companies, video hire shops, furniture stores and car hire businesses.
- Credit reporting agencies store your credit report. These agencies can only show your credit report to credit providers and only for specified purposes including assessing your application or collecting overdue payments.
The Office of the Federal Privacy Commissioner regulates credit reporting and deals with credit reporting disputes. The Privacy Act protects consumers on credit reporting issues including:
- your right to access and correct information on your credit report; and
- the handling of credit reports by credit providers and credit reporting agencies.