Important things to know on your Credit report

Making sense of your Credit Report

If you are thinking of applying for a credit card, you may want to hold off until you know whether or not you have bad credit. To determine what your credit looks like, you should get a copy of your credit report from Australia’s two credit reporting agencies: Veda Advantage and Dun & Bradstreet. Unless you live in Tasmania, you’ll want to get your copy from the Tasmanian Collection Service.

Order a copy of your credit file

Receive email alerts whenever specific changes occur on your credit file for 12 months. You also receive a copy of your credit file despatched within one working day..

Receive your credit file with information on:

• Details of consumer credit enquiries
• Details of overdue consumer credit accounts
• Commercial credit enquiries
• Details of overdue commercial credit accounts
• Bankruptcy & Court Judgements
• Writs & Summons
• Information on your current relationship with a credit provider

Find out more about this offer

Your credit report is a critical part of your life, if can be the difference between a good financial future and a bad one. Whenever you apply for a loan or any other utility, your past credit information is used to determine your eligibility and your application may also be lodged on the credit report.

Once you have your credit report in hand, you will want to look it over thoroughly to make sure everything is correct. But what kind of information is on a credit report?

What does your credit report contain?

Your credit report contains a lot of information including you personal details and past court orders. Some of the items that may be included in your credit report are:

• Personal details such as name, past and current addresses, employment details and drivers licence number.
• Details of any credit applications that you may have previously lodged, this includes home loans and personal loans.
• Any payments that you have not honoured, usually those that have not been payed for more than 60 days. It may also have information regarding any overdue amount which you have already paid.
• Any serious defaults or ‘clearout’ listings where you may have been listed as missing debtor. The report will also have any information regarding bankruptcy orders or judgement debts.

Personal Information

When you have bad credit, it is hard to escape that situation since your credit report has all kinds of personal information to identify you with. Of course it includes your name and your place of residence but it will also list your employer, and any information regarding credit applications. For instance, if you applied for a credit card or a loan, that will show up on your credit report. While it won’t show if you’ve been approved or denied for the credit you applied for, the enquiries will be listed there.

Bad Credit

When you apply for a credit card or a loan, you will fill out the application which includes everything the lender needs to run your credit check. The information gleaned from your report will let that lender know if you are trustworthy or not. If you have several bill payments that are overdue by 60 days or more, the lender probably won’t see you as someone they want to lend money to. That’s why if you have bad credit, you will want to get a copy of your credit report to see if you are wasting your time.

Check and correct any mistakes

By now you would understand how important your credit report is. You need to be sure that your credit file is free from any mistakes or that a credit provider has not wrongly listed that you have defaulted.

You can get a copy of your credit report from agencies such as Veda Advantage or Dun & Bradstreet. You could be charged a small fee for requesting a report depending on how fast you need it. Once you receive your report, you should read it carefully and make notes of any mistakes. Below are a list of things to look out for and ways to correct them.

• Mistakes spelling your name or address, this could lead to a lot of problems including someone else’s debts being passed onto you. If you find any mistakes, you should immediately contact the agency and get them corrected.
• Unusual credit listing on the report, if you find applications and debts listed which you did not apply for, you could be a victim of identity fraud. If so you should contact the agency and the police.
• Check the dates of all credit defaults and anything listed as serious infringements. If you have made any overdue payments, make sure they are listed as paid. If you did not receive any correspondence before being listed for serious infringements, you should rectify this issue.

You also need to be aware that credit information cannot be listed for more than seven years. If you cannot resolve the issue with the lender or service provider, you should contact the relevant authorities or the Office of the Federal Privacy Commissioner.

Is There Hope?

If you get a copy of your credit report and it is deemed that you have bad credit, the only hope you have of getting a credit card is to hope that you can find a lender who will approve you for a card given your current state. Only by becoming a trustworthy borrower again can you hope to gain credit in the future. So before you waste your time and apply for a credit card, get a copy of your credit report and learn to see what lenders see. Lenders will never discriminate against you because of who or what you are, but they will discriminate against you if you have bad credit and that’s why you should always check your report before they do.

Check out today's featured offers:

Westpac Low Rate	Citibank Clear Platinum	Qantas AMEX Discovery	ANZ Platinum
0% p.a. for 6 months on purchases & balance transfers	2.9% p.a. for 12 months on balance transfers	$0 annual fee Up to 10,000 Bonus QFF Points	0% p.a. for 6 months on purchases & balance transfers

Subscribe to our newsletter and get "The Ultimate Guide to Balance Transfers"

Popular Credit Card Offers

			Interest Rate (p.a.)	Balance Transfer Rate (p.a.)	Annual fee	Cash Advance Rate (p.a.)
	Westpac Low Rate Card - 0% Offer	A credit card with a low rate offer on both balance transfers and purchases, plus a low annual fee.	0% for 6 months (reverts to 13.49% )	0% for 6 months	$45	21.49%
	Citibank Clear Platinum Card	Competitive interest rate on purchases and balance transfers offer.	11.99%	2.9% for 12 months	$99	21.74%
	St George Vertigo	Take advantage of this great offer from St.George with a low rate on purchases and a low balance transfer offer.	13.24%	0.99% for 12 months	$55	21.49%
	ANZ Platinum Credit Card	An introductory interest rate offer on balance transfers and purchases, plus a $0 first year annual fee.	0% for 6 months (reverts to 19.24% )	0% for 6 months	$0 annual fee for the first year( $87 thereafter)	20.99%