Credit File Credit Profile

Credit Profile - How does it work?

When you are applying for a loan, the information on your credit file is taken into account. Anyone who has borrowed money (for a credit card, mortgage, car etc) will have a credit file. Amongst other things, banks, retailers and other credit providers rely on your credit file when deciding whether to lend you money or not. Every credit provider attaches varying degrees of importance to the information provided in the credit file. Together with the information they obtain from you and depending on the amount of risk they are prepared to take, credit may be approved.

What is on a Credit File?

A credit file records information about people who have been credit-active during the past five years. Contained in your credit file is information about you and your credit history including:

• Personal details such as: name, residential addresses, date of birth, drivers license number and current or previous employer
• Credit applications and inquiries you have made during the past five years
• Records of some current credit accounts
• Overdue accounts (defaults) which may have been listed against your name, including an indicator on whether the default amount has been paid or not
• Bankruptcy information
• Default judgments
• Public record information

Public Record Information

Public record information includes:

• Judgment and writ/summons information obtained from the various courts around Australia
• Bankruptcy/Part X/Part IX information obtained from the Insolvency and Trustee Service Australia (ITSA) in each state.
• Directorship information obtained from the Australian Securities and Investment Commission (ASIC)
• Proprietorships

"Katherine (Howlett) Mitchell and team are the best financial people and the most efficient I have ever had the pleasure of using. NAB asked me to pass along that ours was the most efficient file, with nothing missing, that they had ever seen." Amie Light - VIC

How can I get a copy of my Credit File?

If you are applying for a home or business loan, it is a good idea to get a copy. It is easy to do and costs very little to access. You can get it at www.mycreditfile.com.au. Obtaining a copy of your credit information file will assist you in managing your personal information and help you to better assess your own credit worthiness. In Australia, even if you have had credit issues, there is generally an option for almost any kind of situation, provided you can now genuinely repay a loan.

How do I maintain my Credit- Worthiness?

Most Australians maintain a clean credit file. It's really about personal finance hygiene! The following steps will ensure your stays clean:

• Pay bills on time. An overdue account is usually a debt that has been owing for a minimum of 60 days (overall accounts where the debtor has been "confirmed missing" remain on the database for seven years).
• Call your credit provider(s) in a timely manner and alert them if there is a problem meeting your commitments.
• Review your credit file to make sure there are no errors in the information and/or discover any overdue accounts that have been forgotten about. A file Update Form is available to request corrections.
• Monitor your credit file to ensure someone is not fraudulently using your identity (a growing problem worldwide).
• Don't make too many applications for unsecured finance. Each one shows up on your credit report and multiple inquires can be an issue for some lenders.
• Remember that the details on overdue accounts, even when paid, remain on your file for five years from the date of listing, as part of your credit history.

What do I do if I have past credit issues or a bad credit history?

If you have had credit issues in the past or have a bad credit history, it does not necessarily mean that you will have issues getting a loan. Make sure you are aware of all your options, starting with the following information:

• Be honest and up-front. It's best that your lender or mortgage broker finds out from you, not your credit reference report, if there are any problems with your credit history. A mortgage broker will also know to show you lender products which take this situation into account.
• If there has been a problem, explain why it occurred and how you rectified it.
• A "no" to a credit application, or the supply of goods and services where payment is deferred, does not necessarily mean your credit file is flawed. Credit providers each have their own lending criteria, so seek an explanation.
• If you believe there are any discrepancies or mistakes on your credit reference you are able to challenge them.
• You may decide to go to a non-conforming lender. They consider applications from people with past credit issues. However, they will still expect the borrower to now be in a position to support the loan.