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How to access a copy of your credit file

There has been some coverage in the media recently about finding out your credit score and how you can go about using this.
 
Firstly, let’s understand what your credit score is. There are companies known as Credit Reporting Agencies that offer a confidential service of keeping track of various things you do in relation to finance and/or regular monthly accounts such as telephone, electricity, and gas. The two most recognised agencies are Veda Advantage and Baycorp. Every time you apply for a loan, phone account, electricity account, credit card etc, the company you are applying to will want to see if you have a good or bad track record in relation to past finance or credit dealings. They ask you to sign a privacy form and then contact one of the companies to obtain a confidential report on you. This is known as your credit report and part of it contains a score. The Credit Reporting Agency also record the details of the loan you are applying for.
 
The first thing any lender or utilities service provider will look at is whether you have a good record or not. This will then enable them to make a decision about whether they want you as a client.
 
Simply put, if the record is good then the loan proceeds to the next stage of assessment.

If the record is bad, getting that finance approved or that mobile phone will become a lot more difficult. The things that give you a low score are:

  - A lot of loan enquiries in a short period of time: this indicates that other lenders may have declined your application for some reason, or that you have some loans you are not declaring.
  - Bankruptcy history, defaults, court actions, judgements or unpaid accounts: this is where poor history on a previous loan or account has occurred. It is usually recorded on here once it is sent to a debt collector. Lenders will still consider providing finance in some cases depending on the amount of the infringement, how long ago it was, whether it remains unpaid, and the type. If they do agree to proceed, it will certainly be at a higher rate and will cost you more to set up.

Our advice is to be upfront with your lender, broker, phone company etc. in relation to any past history. This will enable them to deal with your application in the best way based on your credit history. There is also specialist lenders out there who deal with this type of credit rating better than others.
 
Bad or poor history stays on your file for up to seven years, depending on the type of infringement. It is automatically removed after this period of time.
 
For those of you who feel you have had a poor rating or bad report applied to you incorrectly, there are certain steps you can take to rectify the situation. Firstly, speak with the provider who recorded it. If they will not assist, go to the ombudsman. Finally, if you are still not happy with the outcome, speak with your legal representative or approach a Credit Repair Services Provider. If you do take this final option, ensure you have a very good understanding of their fees and charges, and whether any fee applies if they cannot fix the problem.
 
If you would like a copy of your credit report, Power Tynan can assist. Simply contact our office and we can send you the relevant application forms. We will need some personal details such as your current address and contact details, a copy of your drivers licence and Medicare card in order to complete your 100 point check. It costs $70 and the report is provided to you via email within approximately 30 minutes.
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