Have you ever applied for credit, whether it was for a new motorbike loan, car loan, credit card, mortgage or even a personal loan? If you have, then a personal credit file has been created in your name that will now contain and maintain your credit history online.
Your credit file can easily be accessed by banks and other financial institutions. Your credit file can hold a lot of information that these banks will then use when it comes time to determine whether your credit profile is one that they will look at favourably when you apply for a loan. Do you know what your credit file contains? Read on to find out more about this and how you can get access to your personal information that is kept on your credit file.
Get to know your credit file intimately
The details on your credit file can largely affect the success of your loan application, so it’s important to know what your file contains. Banks and any other company that is looking to provide you with credit will consider the information on your credit file before approving you for their product, this includes mobile phone providers. Banks and other credit providers commonly ‘score’ or ‘rate’ your credit file along with your application when assessing your credit worthiness. Each credit provider will use different criteria for assessing your application so your ranking is likely to differ greatly between the various banks and financial institutions.
What can be listed on your credit file?
Your credit file is an online record of your previous credit history. There are 3 main areas that are covered which are consumer credit information, commercial credit information and public record information. Your previous loan applications, selected current credit account details, (including your credit card or interest free store cards) commercial applications, certain court judgements, and any past paid or unpaid defaults can all appear on your credit file.
Some of your personal information will not be listed, for example your income, criminal records or medical history. However, your date of birth, address and driver’s licence details are likely to be listed.
How can you increase your Credit Worthiness?
Knowing how to build and maintain a ‘good’ credit file can help you obtain credit quickly and easily. Your credit file could be letting you down, especially if your records show a high number of applications to various banks or a history of you defaulting on loans and other credit facilities such as your mobile phone or electricity bill.
It is important that you school yourself on what each bank or credit provider is looking for or at the very least have someone in your corner that knows the finance market. Make note that it is also very important that you don’t apply at various institutions at the one time just to see who will come back to your first as this can be disastrous for your credit file. A professional finance broker such as Ask4Finance will be able to help you understand which financier is best suited to your credit profile and who is going to offer you the very best loan for your individual situation.
The secret to maintaining a healthy credit rating is really quite simple. Always pay your bills on time and contact your creditor immediately if you get into repayment difficulties. You will find that most reputable finance providers will want to work with you whilst you are getting back on track, after all, they want all of their money paid back so the easier they make it for you to do this, the more likely they are to get their money in return.
The Privacy Act gives you the right to obtain one free copy of your individual consumer credit file every 12 months, or within 90 days of being refused credit. To access your credit file, visit Mycreditfile.com.au
For more information on how you can apply for a loan for your next big purchase, head to our website, or if you simply have some questions and would like to speak with one of our credit specialists please free call 1300 769 177.