Managing your Credit Rating
Posted August 12th, 2009
and last modified March 10th, 2010The quickest way to improve your credit rating is to look at your current credit score to understand what exactly this means for you. A credit file can adversely affect you when you try to get approved for loans and credit and therefore you need to improve your credit rating if you can.
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Paying off a low interest credit card is much easier than paying off a high interest card. Keep your repayments steady on a low interest card, and on time, and your credit rating will slowly improve over time
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What is a credit file and how can you find out about your credit score?
A credit file is a financial data file about your credit history over the span of the past seven years. After the period is up, a new file will be created for you. This file is really very interesting for lenders because they can find out a lot of sensitive financial information from your file.
If your file is in good standing, then you have a good credit score. If the file shows issues about missed repayments or defaults, then you need to improve your credit rating. Let’s find out what lenders can actually see when they view your file:
- The application date for credit.
- Whether the application was personal or a joint venture where you are the guarantor.
- How much money was applied for.
- Who the lender is.
- Why the application was made, e.g. loan, etc.
- Personal details: name, residential addresses, date of birth, drivers licence number and current or previous employers.
- Current credit account records.
- Overdue Accounts (Defaults).
- Bankruptcy Act Information.
- Court Judgements.
- Writs & Summons.
- Public record information such as Directorships and Proprietorships.
Your credit file is managed by a central database at Veda Advantage. They are bound by the strict regulations of the Federal Privacy Act 1988.
To check your credit rating is a simple as ordering your credit file from Veda Advantage free of charge. If you need the file urgent, a fee does apply ($29.95.) Otherwise it’s a free service. For security purposes you can only request a copy of your own credit file. The file will arrive at your letterbox within 10 days or so. You will need to verify your identity before you can actually order the file. This is for your own protection as much as for others.
Apply for your credit rating file here:
Your can check your credit score through the following contacts:
By Mail:
Veda Advantage Public Access
PO Box 964
North Sydney NSW 2059
Fax: (02) 9278 7333
Online: Veda Advantage
To prove your identity have the following handy:
- Your full name.
- Your date of birth.
- Your driver’s licence number.
- Your current residential address.
- Your previous addresses.
- Your current employer or a previous employer.
- Name of the organisation to which you last applied for credit.
- A daytime telephone number.
- Your signature.
- How you would like your file sent to you, via: Post, Fax or Email?
Note: Please state whether you are requesting a copy of My Credit File or My Insurance File.
What to do when credit is declined:
It happens. Credit companies must report you to the Credit Reporting Agency by law if they refuse you credit. It is also good to know that your credit file or credit rating isn’t necessary the reason for credit refusal.
Read how to manage your credit rating if you find discrepancies on your file.
When you check your file make sure you look for any:
- Overdue Account Details: Are they still applicable or have you settled the matter in the interim?
- False information: If there are inaccurate details on your file you need to contact the lender who made those claims to get it rectified. Also contact Veda Advantage’s Public Access Team on 1300 762 207.
How to manage an overdue account while maintaining credit-worthiness:
Any overdue account in your name will be listed on your credit rating file for five years. Once the account is listed as a clear-out, it remains on the file for seven years.
It is possible that in some cases your credit score might be affected by overdue accounts not in your name simply by mistake. This is another reason why you should check your credit score at least once every year. If you find this to be the case act immediately and contact the lender and Veda Advantage to get things sorted.
If a dispute results then the Public Access Team will deal with it and your file is marked ‘disputed’ until the matters are resolved.
To keep a good credit track record you can do the following:
- Inform lenders of financial problems the moment you become aware of them.
- Pay bills on time.
- Check your credit score once a year.
- Check your credit file for identity theft. Yes, it happens.
- Use the right credit card for your financial needs.
Hopefully these tips to improve your credit rating and managing your credit score will help you stay on track of your financial situation at all times.
Related posts:
- Credit Options If You Have A Bad Credit Rating
- How Can I Improve My Bad Credit Rating?
- How To Fix A Bad Credit Record and Improve your Credit Score
- Credit Rating Score explained
- Credit Cards For People With A Bad Credit Rating
- Understanding your Credit File
- What Is My Credit Score And How Can I Obtain My Credit Report?
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