Veda score explained
Veda score information explained for borrowers.
Veda score is a specific product supplied by Veda Advantage mostly to lenders and credit providers which helps them assess levels of risk associated with lending to you.
Your Veda score is not your credit history, but rather a ranking based on a collection of your credit history in conjunction with your other personal details and then compared against the general population as an average.
It provides credit providers with a relative score from zero right up to twelve hundred.
Firstly you have your Veda credit file which a lender normally accesses as part of loan/finance checks. Then attached to that is the “Vedascore” if the lender subscribes to the Vedascore product.
Some lenders will use this score, some will not as they have their own scoring system based on the info you provide.
A Vedascore only gives the lender and idea of risk. It is not used as a stand alone product to determine if they should lend to you or not.
All lenders will have certain policies which determine the decisions they make.
Your Veda credit file is a very important component in the overall equation, but not the only one.
Should you have defaults, court actions, bankruptcies or other adverse data on your Veda file then you can assume that a lender may not lend to you because of that.
Adverse information like this will greatly affect your Vedascore.
What is my Veda score based on or compared to?
Your Veda score is a comparison of you compared to others in Australia.
That is to say, how likely you would compare to someone who may default soon or how likely you would compare to someone who probably will not default soon. You will fit into one of the following categories,
Below average to average (0% to 40%). People who are likely to default inside around twelve months.
Good (41% – 60%). Default instances are less likely to be recorded for the next twelve months. The chances of no defaults occurring on your credit file in the next twelve month are better than the average population.
Very good (61% – 80%). Defaults on your credit file are unlikely to occur within the 12 months. Normally your chances of “staying clean” are twice as good as the average person.
Excellent (81% – 100%). Defaulting is unlikely to happen within twelve months when compared to the average Australian. Your chances of “staying clean” are five times better than the average person.
What other information determines my Veda score?
All different types of circumstances make up your Veda score.
For example, you may have a long history of applications on your Veda credit file with fast money lenders for quick cash. That would not be good and consequently effect your Veda score negatively.
You may have only ever shopped for finance through premium tier one lenders such as the big four banks and that would be considered good for your Veda score.
You may have shopped around too much for finance which indicated to a lender that many others have knocked you back. That would be bad for your Vedascore.
You may have lived at one address or been with one employer for a long time. That contributes towards stability and would be good for your Veda score.
You may have a lower Veda score if you are very young with little or no borrowing history.
These are just a few instances which affect your Vedascore but you can get the idea now.
So what is most important NOT to have on my credit file?
Your Veda score will be heavily impacted by any defaults, court actions or bankruptcy information.
Before a lender sees your Veda score you can access your Veda credit file which will quickly show the presence of any such adverse info.
If you obtain your Veda credit file assessment and you are advised of any adverse entries, best not waste your time by applying for finance until it’s fixed.
If it can’t be fixed, only time will remove the defaults and normally five to seven years from each default entry date.
Rest assured your Veda score will be severely impacted by such defaults. Get them fixed before you submit an application and fixed BEFORE a lenders checks your Veda score.
As part of our service and only at your request, Fix Bad Debt may access your credit file immediately conditional upon your authority being submitted. We are a registered access seeker to the credit file data base of Veda Advantage, but we are not Veda. Our express assessment of your Veda credit check information is a premium service we offer consumers to identify any issues which may require repair on their Veda credit file without delay. Please be aware that we do not provide direct online access to Veda Advantage or any of its related services, nor are we affiliated with Veda services and products in any way, directly or indirectly. We do not sell Veda credit files or engage in the resale of same. Should we access your Veda credit file information for our internal process as part of our “chargeable assessment and recommendation service” a copy of that credit file information which we have accessed will be provided to you at no cost. We do not provide credit files as a stand alone service, nor do we sell credit files as part of any other service we provide. If we have accessed your credit file on your behalf in conjunction with any of our other services, then you are entitled by law to request a copy be provided to you at no charge.