Free Credit Reports
If you have been rejected by a lender when trying to get a debt consolidation loan or if you are about to apply for a loan, it’s important to know what is on your credit history.
Your credit history is assembled into a report, which includes information about your past applications, repayments, defaults, missed deadlines, bankruptcy claims and debt agreements.
These specific reports are usually requested by financial institutions (banks, lenders, credit providers, mortgage and trade insurance companies) themselves when someone applies for a loan.
It enables them to collect useful information and determine a person’s credit profile and financial abilities. Your credit report does impact a credit provider’s decision on whether to grant you a loan and by how much.
The information on your credit report comes from different governmental bodies and financial institutions that you give permission to to disclose your credit history to other bodies when applying for a loan.
The nature of the information and the context of a credit report application are regulated by the Privacy Act of 1998.
Under the aforementioned legislation, insurance companies (with the exception of mortgage and trade insurers), employers, landlords and real estate agencies cannot request or obtain your credit report.
Your credit history compiles the following pieces of information gathered from credit and governmental institutions:
- Personal data: name and surname, date of birth, gender, previous and current addresses, professional occupation and driver’s licence
- Number of credit card(s)/credit accounts held by subject
- Number of loan applications
- Guarantor loans
- Credit defaults
- Past unsettled debts
- History of loans and credit card repayments
- Business loans
- Past debt agreements
- Bankruptcy history
- Judicial decisions regarding your credits
- Persons who solicited your credit history
The Privacy Act forbids the following information from being disclosed in your credit report:
- Sexual orientation
- Religious beliefs
- Political orientation
- Health history
- Affiliations to associations
- Genetic history
- Criminal record
- Overdue payments of utilities
You are entitled to get one free credit report a year per credit reporting body. A free credit file check will enable you to make financial decisions based on accurate information.
Knowledge is Power
Reviewing your free credit file check allows you to know what is actually on your credit history. Debt collectors may threaten to lodge defaults, but in many cases, they’ve already been lodged.
Many people choose not to enter into Debt Agreements and Personal Insolvency Agreements, because they don’t want to damage an already broken credit history.
The bottom line?
You have the right to assess information stored on your credit history file, and you can get a free credit file check from Equifax (formally Veda Advantage).
Many people make a point of getting their free credit file check every 12 months to prevent identity theft. If you do see unusual activity on your report, you should declare the identity theft to your credit reporting body to ensure the fraud is not listed in your report.
Selecting this link will open a window to the Equifax website. DCS Group Australia is not affiliated with Equifax in any way.
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