MY CREDIT FILE REPORT

• What is a credit file?

  A credit file is simply a report that records information (credit and identity that is of relevance for credit assessment purposes):

  • Who you have applied to for credit (banks, utility companies such as gas, electricity, telephones, finance companies)
  • The amount of credit you applied for
  • The type/purpose of credit sought (loan, overdraft, interest free store card, home loan, credit card)
• What does a credit file look like?

  Please click here to view a pdf version of a sample report.

• Does everyone have a credit file?

  No. Only people who are, or have been, credit active in the last 7 years will have a credit file.

• What is on my credit file?

  Information about you and your credit history including:

  • Personal details such as: name: residential address: date of birth: drivers licence number:
  • Credit applications and enquiries 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
  • Bankruptcy information,
  • Judgments
  • Public record information such as Directorships and Proprietorships.
• Who starts my credit file and how?

  Your credit file is initiated by the credit provider the first time you apply for credit or information that is obtained from public authorities; i.e. Directorships, Proprietorships, Bankruptcy or a Court judgment. The credit provider inputs information directly into the database about you, including your:

  • Name
  • Sex
  • Date of Birth
  • Drivers licence number
  • Current & previous residential address
  • Type of credit applied for
  • Amount of credit you are applying for.

  Once your initial credit file is set up, subsequent credit providers update your file by adding the relevant credit application details and any change of address information.

• Should I have a copy of my credit file?

  Yes, for a number of very good reasons.

  • Banks, retailers and credit providers rely on your file when deciding whether to lend you money or not
  • Your credit file is about you and your reputation as a borrower. You should know exactly what it contains
  • Credit fraud is a growing issue all over the world. If you do not check your file you will not know if someone is using your identity to borrow money - until it is too late, making it much more difficult to fix.
• How do I get a copy of my credit file?

  You can obtain a copy of your file and a detailed report explaining it in layman's terms plus a health score rating for just $69.95 including GST. This will be emailed to you within (48) hours of your request and payment.
  Click 'my credit file' to order this now.

• Once I have a copy of my credit file, is it easy to understand?

  Yes, Click here to view a sample report.

• Why was I declined credit?

  The decision to decline your application for credit is made by the credit provider not a credit agency. The first step in identifying why you were refused credit is to look at a copy of your credit file, and the report that comes from this site.

  
  You may discover:

  • you have overdue accounts (defaults) you had forgotten about
  • the information on your credit file is incorrect
  • someone has been using your identity to obtain credit fraudulently and has defaulted on the payments.
• Who Are Credit Friendly Brokers?

Need Help Understanding Your Credit File?

• How long does it take for information on my file to be updated?

  The amount of time taken to update information on your credit file can vary.

  If a credit provider is updating an entry they have placed on your credit file, the maximum delay will be five working days from the time they notify the credit agency of the required update. Depending on the method used by the credit provider, the update may be completed much sooner.

• What is my credit rating/credit score?
  
  Most credit providers score or rate an application as part of the process to assess the risk involved in providing credit to you.

  This technique involves building a score or credit rating based on the information you provide on the application form and the information held on your credit file.

  Information supplied by you on your application form to the credit provider may, on its own OR in conjunction with the information that is held on your credit file determine that you did not meet their lending criteria.

  Each credit provider applies their own rating or score to each item of information used in the credit decision process, so one credit provider may approve your application whereas another will decline it. All credit providers however follow the "6 'C' Guidelines for credit Assessment"; devised by Nigel Brookson when analysing an application.

• How long is the information held in my credit file?
  • Credit applications, enquiries and overdue accounts are held on your file for five years
  • Bankruptcy information is now held on your file for seven years
  • Clearout information (an agreement was made to pay an amount; but not the full amount) is held for seven years
  • Court Judgments are held for five years (excluding ACT)
  • Queensland & WA Writs & Summons are held on file for four years
  • Identity information, which includes your name; along with cross-reference names (if any), date of birth, sex, driver's license, address history, are held for the life of the credit file. This information is used to distinguish the credit file from others held in the database
  • Purge dates are calculated on the date the information was added to the file, and are based on the time limits provided in the Privacy Act 1988 and as ammended
  • Files are scanned each month and out of date information is automatically purged to ensure the files are accurate.

  It is important that you understand that even when an overdue account or clearout has been brought up to date or paid in full, it will not be removed from your file.
  
  All overdue account listings remain on file for five years from the date of listing. All clearout listings remain on file for seven years. The fact that an account has become overdue, and then been paid becomes part of your credit history.

• What do I do if the information on my credit file is incorrect or needs to be updated?

  There are a number of situations that you could wish to rectify:

  Overdue Account Details:

  • If you have an Overdue Account (Default) on your file that has been paid but has not been updated, then contact the credit provider listed and ask the credit provider to contact the credit agency. Your file will be updated within five days of the credit provider notifying them that the account is paid
  • Should you discover an Overdue Account (Default) on your file which is not yours (you may not recall having an account with that company). Contact the Credit Provider and give them the reference number on your credit file so they can investigate the matter for you. If the credit provider confirms that the account is not yours, they should inform the credit agency, so that it can be removed from your file.

  Overdue Account Disputes:

  If you have an Overdue Account (Default) that you are currently disputing with a credit provider, complete and return your fully completed File Update Form plus full details of the dispute to the credit agency. The entry can then be marked 'disputed' until the matter is resolved.

  Public Record Information:

  Your file may contain items on the public record such as:

  • Judgement and Writ/Summons information obtained from the different Courts throughout Australia
  • Bankruptcy; Part 10/Part 9 information obtained from the Insolvency and Trustee Service Australia (ITSA) in each of the states
  • Directorship information obtained from the Australian Securities and Investment Commission (ASIC).

  Should any of this information be incorrect, your reputation and therefore your credit worthiness could be at risk.

  Correcting or Updating Identity Information/ Inaccurate Details:

  If there is any information that is incorrect, such as an address or your date of birth, simply contact the credit provider who made the error and ask they update your information with the credit agency. If you believe there are inaccurate details on your credit file, again contact the credit provider and give them the reference number on your credit file so they can investigate the matter for you.

Overdue Accounts (called defaults)

• What is an Overdue Account (default)?
  • An Overdue Account (default) is usually a debt of over $100 that has owed for a minimum of 60 days
  • Overdue accounts (defaults) may only be listed by a credit provider once steps have been taken to recover the whole, or any part of the amount. The credit provider must have requested the borrower, either in person or in writing, to pay the outstanding amount; i.e. issue an overdue notice. In many cases a letter of this nature will explain that if payment is not made by a certain date, they will list a default on your credit file.
  • Once the account is paid, or brought up to date the credit provider is obliged by law to amend the credit file to show that the overdue account has been paid. Overdue Accounts (default) remain listed on the credit file for five years, unless an investigation proves the overdue account was listed in error
  • Potential credit providers in general do not look favourably on customers with a history of overdue accounts; defaults.

  NB: Even when the overdue account has been brought up to date or paid in full, it will remain on file. All overdue account listings remain on file for five years from the date of listing. The fact that an account has become overdue, and then been paid becomes part of your credit history.

• What is a clearout?

  A clearout is defined as a 'confirmed missing debtor'.

  • A credit provider must have made reasonable efforts to contact the debtor in person or in writing.
    
    (If you change your contact details; i.e. you change a phone number, or address of your place of residence, you should contact your credit providers so they have your new contact details, or they will continue to try and contact you with the old details, not knowing why you are not responding).
  • The debt can be reported immediately - in these cases credit providers do not have to wait until payment is 60 days or more overdue before listing the debt on a file.
  • These debts remain on file for seven years from the date of listing.
• What does "current" mean?

  If you have an overdue repayment that you bring up to date, the credit provider will update the status of listing to "current". What this means is that although you still have a balance outstanding with them, your payments are now up to date.

• What happens to the record of an overdue account on my credit file once the account has been brought up to date or paid?

  Once the account is paid, or brought up to date the credit provider is obliged by law to amend the credit file to show that the overdue account has been paid. Overdue Accounts recorded as a payment default remain listed on the credit file for five years while Clearout listings remain on the file for seven years.

• Can I have the record of an overdue account on my credit file removed?

  An overdue account is only ever removed early from a credit file if it has been listed in error. If you do wish to dispute an entry on your file, contact the credit provider directly.

Credit Fraud

• What is credit fraud?

  One of the most common forms of credit fraud is committed by 'stealing' the identity of another individual. Someone obtains your identity details and uses them to obtain credit for themselves, leaving you with the potential liability for this debt, a damaged credit reputation and the inconvenience of amending your credit file.

• What should I do if someone has used my identity to obtain credit?

  Credit fraud is a crime. If you believe that information held on your credit file has been caused by another individual fraudulently using your identity details:

  • Obtain a copy of your credit file to confirm someone has used your identity
  • Contact the police and report the crime; making sure you have all the facts and proof
  • Contact the credit providers involved and inform them of the fraudulent activity, and that the police have been notified, otherwise they may hold you responsible for any bad debts that are incurred.

  When dealing with credit providers keep notes of all the conversations you have, including names, contact number and the time and date you spoke to them. Also ask questions if you are unsure of the process, as each credit provider will have their own processes for handling fraud.

  The credit providers will then conduct their own investigations and notify the credit agency of the outcome. The fraudulent information can then be removed from your credit file.
• Can I protect myself against credit fraud?

  Yes. To reduce the chances of credit fraud happening to you follow these simple rules:

  • Know what is on your credit file, and why.Click here to order.
  • Store your cards and personal ID items in a secure place
  • Shred any paperwork that contains your personal details or account details before throwing it away; keep at least the most recent financial years statements in a secure place you can access when you require them.
  • Contact your credit provider/financial institution immediately if your cards are lost or stolen
  • Keep your PIN (Personal Identification Number) confidential and separate from your card; i.e. not in your wallet or purse/handbag
  • Don't disclose your personal identification information to anyone.

About Credit Providers

• Do all credit providers that I make applications to check my file?

  No. However, most credit providers considering applications for credit or the supply of goods and services where payment is deferred choose to do so to ensure their decision to approve or decline an application can be justified.

  Understanding an applicant's past credit activities, gives credit providers a better assessment of the potential level of risk involved in approving a new application for credit.
• Is a credit check related to the amount I want to borrow?

  No. There is no dollar limit that triggers a credit file check. In fact applications for services such as electricity or mobile phones may even appear as zero; because the amount of the applicant's potential monthly bill is unknown.

• Is the credit provider the only person to add information to my file?

  No. Credit agencies also sources information on public record including:

  • Bankruptcy information from Insolvency And Trustee Service Australia (ITSA)
  • Writs/summons and judgments from courts around Australia
  • Directorship information from the Australian Securities and Investment Commision (ASIC)
  • Proprietorship information from State Business Registries.

  This information is downloaded directly from the database of the information holder directly into the Credit agency database.
• Who can access my credit file?

  Under The Privacy Act (federal legislation that governs what information can be held and the length of time it can be held for) credit providers who you have applied to for credit, or goods and services where payment is deferred by a minimum of seven days may access your file; with your consent first.

  The Privacy Act also lays down requirements for dispute resolution and the Security of information held. The Office of the Federal Privacy Commissioner also audits credit reporting agencies to ensure compliance with the Act.

• Can credit providers access my file without my permission?

  No. You will have to give your authority for anyone to access your credit file. This can be done over the phone, by clicking 'I accept/agree' on a website, or by signing a paper consent form.

• Why is a credit agency permitted to hold credit files on people?

  A credit reporting agency is permitted to hold credit information files on individuals, as long as they record information in accordance with the Federal Privacy Act 1988, particularly section 18E. For further information regarding the permitted contents of credit files you may wish to visit
  www.privacy.gov.au.