There is wrong information on my credit report. What do I do?

There is wrong information on my credit report. What do I do?

Credit file information

So what do you do when your credit report has the wrong details in it? Firstly don’t panic.

You would be surprised at how many Australian consumers have some sort of wrong information on their credit report.

If you have found a recent copy of your credit report shows incorrect information in it, do not be immediately alarmed.

Go into repair mode, not panic mode.

This is not unusual so do not think you are considered “bad” because part of your credit file is wrong.

Firstly gather your identification such as drivers license. Make sure the ID shows exactly what should be displayed on your credit report.

Next contact the credit reporting bureau online. Not by phone because you need a track record of your actions or a foot print that they can see, just in case you need to follow up the credit reporting bureau which is also not uncommon.

Submit your online request and clearly and accurately outline the specific issues in point form. Write your request as if dealing with dummy’s. Make it easy enough to read for anyone.

Supply the required credentials and ID which may be requested of you.

Importantly do everything the way they request and do not change it to suit you.

This is the fastest and free way to correct your credit file. Having a clear and correct credit file is critical to successful finance. Don’t dismiss an error as minimal or it may cost you!

Look at what banks focus on when reviewing your credit report in this article.

Can I clear judgments from my credit file?

Can I clear judgments from my credit file?

Credit file information

How do I clear judgments from my credit file?

Many consumers are faced with this question when it comes to credit report issues. Is it possible to clear judgments from my credit file?

Clearing judgments is possible under certain circumstances. But it doesn’t always work, especially if not done correctly.

Each state or territory in Australia has its own jurisdictional court rules to be followed.

Cooperation from the listing creditor is also required to successfully clear judgments from your credit file.

Previous procedures from around two years ago no longer work, in fact they ruin your chances of clearing judgments from my credit file.

Equifax, formerly Veda, no longer accept a notice of discontinuance files at court to clear a judgment.

Too many consumers read this dated procedure within online articles in an attempt to clear a judgment from their Veda Equifax credit report.

In fact this discontinuance procedure now permanently closes the matter in court which eliminates the possibility of filing the correct documents.

This is where seeking assistance of a solicitor who specializes in credit reporting law is so valuable.

Solicitors trained and up to date with credit reporting law and associated court procedures know what is required to successfully clear a judgment from your credit file.

Given the consequences or doing more damage than good if you get it wrong, it pays to get it right the first time using a professional, so long as the agreement of service is “no win – no fees”. Never pay money upfront.

Simply provide a copy of your credit file to receive a free quote on what may be possible.

Credit card repair on your credit file

Credit card repair on your credit file

Credit file information

Is credit card repair possible on your Equifax credit file in Australia?

In today’s day and age credit card applications are part and parcel of almost every consumers’ financial behavior at some point in time, but for some people excessive applications can lead them in search of credit card repair which may not be possible, ultimately leading to disappointment.

Credit card applications are fine if carried out in moderation however the lure of a line of credit is just too attractive for some people and the number of attempts to obtain a credit card can have adverse implications on your credit history.

Yes it does get to the stage where some consumers end up seeking services for credit card repair in the hope that their excessive applications can be trimmed down on their credit report. But that is where issues can crop up.

Firstly understand that lenders look at many aspects of your credit report and also the aspects of information you provide them with when applying for finance or credit. Lets examine what lenders focus on in the application section of your credit file.

Applications on a credit file in Australia stay on file for five years. However lenders are more concerned with the more recent applications as they reflect more accurately your financial shopping pattern. This gives them an idea of how often you have been applying for credit and in turn an idea of your “need for credit”. Normally they focus on the last two years but not limited to that.

Obviously when a lenders sees excessive applications for finance on a credit file they form the opinion that you may be desperate for funds. That in turn can lead them to believe that you may not be altogether responsible with your ability to restrain yourself and spend sensibly and responsibly.

So what is an excessive amount of applications on your file ? The answer to that will also depend on the type of applications such as mortgage, personal loans, credit cards, auto finance or fast money loans. Three secured mortgage applications can be fine where as three credit cards may not!

Without doubt fast money loans are the worst to have on your credit file. They are the type that offer same day loans with ultra high interest rates over a short repayment period. Avoid applying for them at all costs as even one of those applications on your credit file can lower your credit score dramatically.

Then next worse would be credit card applications. It is normal to have one or two over a five year period but any more indicates to a lender several things which they perceive as negative, thus reducing your chances of getting finance approved.

Multiple credit card applications could indicate you have maxed out your current cards and you need more quick cash. Naturally this is a killer on your credit history. Multiple applications can also mean that you are in the need for fast unsecured cash, another indicator that you may not be good with your finances.

And once these entries are on your file it is mostly too late to think credit card repair is possible. Applications are unlike defaults or judgments on your file as they cannot be disputed unless duplicate or fraudulent. The lender normally retains a copy of your application and where it has been submitted from so thinking you can simply tell them “it’s not mine” will not work. Unless of course it truly is not yours.

Claiming you applied for your ex partner is useless also. Lenders do not care what you have applied for in your name for your ex. Forget that one straight away.

Any credit repairer claiming to credit card repair or remove credit card applications which you know are legitimate are stringing you along and will more than likely be asking for your money upfront. BEWARE and never pay for this as a claimed service.

Credit card repair is almost always impossible when it comes to removing applications from your credit file. Defaults and judgments are a different story. Read more on default removal.

more on too many credit card applications

Credit rating

Credit rating

Credit file information

Credit Rating check Australia.

There are only a few credit reporting bureaus in Australia which gather and maintain your personal credit history information or your credit rating.

The two largest of these agencies in Australia are Veda and Dun & Bradstreet, with Veda being the largest and most commonly used.

Almost every lender will access Veda when performing a credit check on you and quite a lot will also use Dun & Bradstreet.

All of these agencies who compile and maintain your credit rating are governed under very strict laws which fall under the Privacy Act.

Not everyone has access to your credit rating.

In order to have access to your credit rating a business must be a licenced financial provider, utilities provider, mortgage broker or other authorised access agent which also must act in accordance with laws and guidelines as outlined by the Office of the Australian Information Commissioner (formerly Privacy commissioner)..

Of course you can access your credit rating in Australia by carrying out your own search which is not difficult.

There are two options for you to perform your own credit rating assessment online.

You can contact a credit reporting bureau and request a free copy. This will normally take several weeks to get to you.

Or you can choose to have a professional assess your credit history on your behalf which is employing an authorised access seeker/agent and attracts a small fee for assessment, such as our $35 fee.

All lenders will check your credit rating as part of an application process.

Naturally lenders want to see if you have any less than desirable back ground before they provide you with Credit or lend money.

These lenders and credit providers must hold a current Australian Financial Services Licence.

When they access your credit rating they will see the last five years of activity regarding applications for finance, credit cards and other lines of credit, utilities applications such as power or gas and of course Telco applications.

If you have any defaults on your file they will stay on for five years from the original entry date, regardless of when you opened the account or went into arrears.

If you have a court action on your credit file it will also last for five years from the date judgment was entered.

Bankruptcy details are listed for seven years from the commencement date of bankruptcy, even if it is only a Part 9 under the Bankruptcy Act which is what you are arranging when you agree to the many advertised debt assist programmes you may have seen on television. Be careful!

Personal information is also held on your credit rating.

Other information which you provide when applying for credit or finance will also be loaded onto your credit rating by the credit provider you are submitting the application with.

That is how your personal details are updated with a credit reporting bureau such as Veda or Dun & Bradstreet.

Information such as your employer, date of birth, current and previous address, licence number is all entered every time a lender completes a credit check on you. This cross references with the existing date on the credit reporting bureaus data base and obtains a correct match.

Mistakes can be made by credit providers when checking your credit rating.

Staff are only human and prone to making errors when submitting data to a credit agency.

And yes, some entries can be removed as we discuss in this article.

If you are in doubt of any information on your file you can always conduct a credit check yourself and see what is held on your file.

If a credit provider tells you there is adverse information on your credit file then it would be wise to obtain your credit rating file immediately and examine the contents. You may have to seek help if adverse issues are removable.

Not all entries on a file can be removed or amended and will be determined by the account history behind a default, who the credit provider was, how helpful any staff are who you approach, whether they followed correct procedures when listing a default on your credit rating and many more factors.

If you need your credit rating assessed by a professional then you can apply right now by using our link Assess My Credit history.

Comprehensive Credit Reporting Changes in 2014

Credit file information

Credit Reporting changes and what they mean from March 2014 on Australian credit rating reports.

 What’s new in comprehensive credit reporting changes?

Previously Australia had a negative reporting system meaning consumer credit files only contained information like credit enquiries for a personal loan or credit card and defaults or serious credit infringements. Under the new comprehensive credit reporting changes positive information will now be included on credit reports.  This will be more consistent and inline with other countries in the world who use and have made comprehensive credit reporting changes.

The good information which can now be included on credit reports includes account information such as the date an account was opened and closed, credit limit, type of credit account as well as 24 months repayment history. Repayment history information can only be provided by and shared with licenced credit providers, but does not include telecommunications and utility/energy companies.

The Federal Privacy Act 1988 in Australia which is the legislation governing consumer credit reporting, has been amended to include these comprehensive credit reporting changes. Comprehensive credit reporting changes the type of credit information that can be collected by credit reporting agencies (Veda, Dun & Bradstreet) and used by credit providers (Banks & lenders) when making a lending decision. These amendments came into force on 12 March 2014.

So what good has come of these credit reporting changes for consumers?

These comprehensive credit reporting changes give consumers a better ability to show lenders their credit worthiness and manage their finances in a positive manner.

Better rates with Lenders. With a more detailed credit rating and regular updates, having a credit history showing good credit behaviour will become important in being approved for finance at the best price and best rates.

Good credit activity. You will be able to show good credit behaviour because the new system records if you have made your credit payments on time.

Faster Credit rating establishment times for new borrowers. For individuals new to borrowing the use of comprehensive credit reporting changes means that you can build a credit rating quicker. Such as if you are young or a new Australian.

Better balanced system. A better balanced system for borrowers who already have a good credit history in addition to borrowers who previously had difficulty making payments, all because you may be able to access quality credit where previously not possible.

Better financial healing times. Improve your credit report quicker after an adverse financial event by showing good credit behaviour which may offset the impact of defaults.

What impact will these credit reporting changes have on me?

From 12 March this new information is permitted to be collected, held and disclosed by credit reporting agencies such as Veda or Dun & Bradstreet. Once this data is supplied to them by by credit providers (lenders), your credit history will include information such as but not limited to account open date and close dates, the type of credit account such as a credit card or personal loan and the associated credit limit. Credit limit increase can be included on your credit history under new credit reporting changes.

Also showing may be monthly payment history on finance such as mortgages or credit cards. This will show if you paid the minimum amount required by the due dates but only relates to credit supplied by licensed credit providers.

Information which already appears on your credit history includes but is not limited to personal details such as name, address and date of birth, consumer credit information such as credit or loan applications known as enquiries, overdue payments known as defaults, serious credit infringements known as “clearouts” , publicly available information such as bankruptcy information, court actions and directorship information.

What happens from now on if I am just a couple of days late with a repayment?

If you make a late payment and it is more than around 10 days past the due payment date ( still being amended ) this can be recorded on your credit rating which will be part of your repayment history information (CCRI) as a late payment. This repayment history information is recorded on your credit report for a period of 2 years and is part of the new Comprehensive Credit Reporting changes.

Defaults can only be recorded on your credit history if you miss a payment which is more than $150 and is more than 60 days overdue. Before listing a default the credit provider must have taken steps to collect the whole or part of the outstanding debt and acted under the correct procedures with issuing of notices and attempted contact methods.  Defaults are a five year listing which is very adverse on your credit file!

So, under new Comprehensive Credit Reporting changes make sure you do,

1) Make all loan and credit payments on time. Be more diligent about diarising payment dates if you have difficulty remembering or scheduling these bill payment times.

2) Do not wait for a lender to contact you if you are having troubles. Do not think just one missed payment will be overlooked. Be pro active and contact your lender to discuss any potential difficulties. They are obliged to help you manage your payments in times of hardship and it will look good on record that you have contacted them first.

3) Keep applications to a minimum. Don’t think an online application will not be included on your credit history just because you did not get the finance. Lenders do not like to see an “excessive shopping history” when it comes to applications on your credit history and this also lowers your credit score.

How can I see my current credit history report and any changes?

We can assess your Veda report immediately for a fee of $35 on our site application by clicking here Click Here
Our assessment service charge is for compilation of our findings but we do not charge for accessing your Veda credit file. Your credit file is passed onto you free of charge after we have finished our assessment service

Alternatively you can get a copy of your credit history from a credit bureau but you will have to wait and then assess yourself. You must apply through a credit reporting bureau.