Loans and credit are part of our daily lives. For this reason, it’s important to understand the basics behind the credit file and how credit history is used to manage those files.
Whenever you apply for a loan, such as a personal loan, mortgage, car loan or even a credit card, the financial institution to which you apply will first go through your credit file and evaluate it.
Your credit file contains all your personal information relating to any credit you have used so far. It also contains personal information about your identity. Information in your credit file includes:
- Credit history including details of all your credit accounts
- Full name
- Date of birth
- Current address
- Current and previous employer details
In Australia, most credit files and records of credit history are maintained by Veda Advantage, which was formally known as Baycorp.
Details of your personal information remain in your credit card for five years. This includes information about your overdue credit accounts.
The exception to the case is if you are listed as a “clear out”, that is, if you change your address without notifying your creditors and they cannot contact you. If you are listed as a “clear out”, your information stays on file for seven years.
MyCreditFile.com.au My Veda Alert Review
The importance of credit files
It’s important to be aware of your credit file since this is the most important information that institutions look at before granting you a loan. If you have a poor credit history as reflected in your credit file, you may be denied a loan or may need to be satisfied with a loan that charges you higher interest due to your poor credit.
For this reason, it’s important to periodically go through your credit file yourself, and check that all the details are true and accurate. You can order a copy of your credit file directly from www.mycreditfile.com.au and go through all the entries.
If you find an error in your credit file, you should try to get it corrected. In the first instance, you should contact the financial institution who provided the incorrect data, and try to get them to correct the data. If they do not do so, you can then contact Veda Advantage directly if you feel that there is a genuine cause for a review of your file. You can find more information about this on the Veda Advantage website.
Once you have your credit file information, you may find that there is default on your file. There is a process that institutions must follow in order to put a black mark against your name. It is a specialised area and you may want to learn more about engaging a credit repair company which can work towards removing these defaults on your behalf.Back to top