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The information contained in a credit file can be used in determining a person’s
credit-worthiness. Therefore, it is important for borrowers to regularly keep a
watching brief on their file.
To help manage your credit file follow these six guidelines:
GUIDELINE NO 1 – WHAT IS A CREDIT FILE
Files are kept for people and businesses which have been credit-active during the
past seven years.
Details include:
- the date credit was applied for
- if it was a personal or joint application
or you acted as a guarantor
- from what body or institution
- the amount
sought and
- the type and purpose of the credit sought.
It also includes information necessary to identify you as well as information of
relevance for credit assessment purposes, such as:
- Personal details such as: name, residential addresses, date of birth, drivers licence
number and current or previous employer
- Records of some current credit accounts
-
Overdue Accounts (Defaults) which may have been listed against your name
- Bankruptcy
Act Information
- Court Judgements and Writs & Summons
- Public record
information such as Directorships and Proprietorships.
No credit provider is allowed to access a consumer credit file without the permission
of the applicable individual.
Veda Advantage records information on credit files under the strict regulations
of the Federal Privacy Act 1988.
GUIDELINE NO 2 – HOW TO CHECK YOUR CREDIT FILE
A credit file is updated every time a person or commercial entity applies for new
credit.
The information contained in the file is easy to read.
Importantly, the information is one of the factors that impacts on your credit-worthiness.
Banks, retailers and credit providers use the data, along with the information you
provide to them, to determine whether to lend you money or not.
This makes it crucial for borrowers to keep a watching brief on their file. If there are any inaccuracies on a credit file, it may delay your
application for credit while those inaccuracies are investigated and corrected.
We therefore recommend that anyone applying for credit checks their credit file
at least 30 days prior to making a credit application.
A simple way to obtain a copy of your personal file is by applying online. The cost is $29.95 (including GST).
A copy will be sent by email, post or fax within one working day of a request being
received.
Free service
If you have a little more time to spare then choose our free service and a copy
of your credit file will be dispatched to you within ten working days free
of charge.
Please note that you may only request a copy of your own credit history. For security
purposes, prior to receiving a credit file you will be asked to verify your identity.
You can obtain more detailed information regarding the access and use of personal
information on our privacy page.
Requests can be made by:
Mail:
Veda Advantage Public Access
PO Box 964
North Sydney NSW 2059
Fax:
(02) 9951 7880
To obtain your file you will need to provide us with following:
- Your full name
- Your date of birth
- Your driver's licence number
- Your current residential address
- Your previous addresses
- Your current employer or a previous employer
- Name of the organisation to which you last applied for credit
- A daytime telephone number
- Your signature
- How you would like your file sent to you, via: Post, Fax or Email
Note, please clearly state whether you are requesting a copy of My Credit File or
My Insurance File.
This free service is for personal records only.
Veda Advantage also offers My
Veda Alert to help you safeguard your personal information and monitor any
suspicious changes to your personal credit file.
For $40 (including GST) per annum, this monitoring service helps you to minimise
risk of identity theft, one of Australia’s fastest growing crimes.
GUIDELINE NO 3 – WHAT IF YOU ARE DECLINED CREDIT
Credit providers are obligated to refer anyone who they have refused credit to the
Credit Reporting Agency they use. There are a number of reasons why a credit provider
might refuse an application for credit, but it is not always because of information
contained in a credit file.
The first step is to check your
credit file to identify any problems.
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 may wish to rectify:
Overdue Account Details
- All overdue accounts listed as a payment default remain on file for five years from
the date of listing. All overdue accounts listed as a clearout remain on file for
seven years. Even when the account has been finalised, overdue accounts remain on
file for the specified five or seven years as above. The entry is simply updated
to reflect it was paid in full, settled or brought up to date. The fact that an
account has become overdue, and then been finalised becomes part of your credit
history.
- Should you discover an Overdue Account (Default) on your file which is not yours
(you may not recall having an account with that company) please 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 will inform us so that we can remove it from your file.
Inaccurate Details
- If you believe there are inaccurate details on your file, please contact the credit
provider and give them the reference number on your credit file so they can investigate
the matter for you. In addition, you should also contact Veda Advantage’s
Public Access Team on 1300 762 207.
Consumers should be also aware that:
- credit providers have individual criteria for deciding who to lend to.
- Refusal
may occur even if overdue accounts, court judgements or bankruptcy act information
on a file show that they have been finalised.
GUIDELINE NO 4 – WHAT TO DO IF YOU HAVE AN OVERDUE ACCOUNT (DEFAULT) ON YOUR
FILE
- All overdue accounts listed as a payment default remain on file for five years from the
date of listing. All overdue accounts listed as a clearout remain on file for seven years.
Even when the account has been finalised, overdue accounts remain on file for the specified five or
seven years as above. The entry is simply updated to reflect it was paid in full, settled or
brought up to date. The fact that an account has become overdue, and then been finalised becomes
part of your credit history.
- Where an overdue account is showing that is not yours call
the credit provider and give them the applicable reference number so they can investigate.
If justified, the credit provider will then inform Veda Advantage and the incorrect
data will be removed.
- In cases where you are disputing an overdue account with
a credit provider, full details of the dispute can be forwarded to our Public Access
Team. This action allows for the entry on the credit file to be marked “disputed”
until the matter is resolved.
GUIDELINE NO 5 – MAINTAINING CREDIT-WORTHINESS
The following steps are recommended:
- Pay your bills on time
- 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.
- Monitor your credit file to ensure
someone is not fraudulently using your identity (a growing problem worldwide)
-
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
-
Remember that the details of overdue accounts listed as a payment default, even
when paid, remain on your file for five years from the date of listing, as part
of your credit history.
- Overdue accounts listed as a clearout remain on
your file for seven years from the date of listing
GUIDELINE NO 6 – HOW TO DEAL WITH IDENTITY FRAUD
Identity Fraud costs the community $2.2 billion a year.
In its simplest form, an individual’s personal details are “stolen”
and used to gain credit – either cash or goods and services.
Unfortunately, the individual is left with a potential liability for the debt, a
damaged credit reputation and the inconvenience of amending a corrupted credit file.
Protection is the best deterrent:
- Know what is on your
credit file
- Regularly monitor your
credit file
- Sign all new credit cards as soon as they are received
-
Store cards and personal ID items in a secure place
- Shred any paperwork that
contains your personal details or account details before throwing away
- Contact
your financial institution immediately if your cards or account details are lost
or stolen
- Keep your Personal Identification Number(s) confidential and separate
from your card
- Don’t disclose your Personal Identification Number(s) to
anyone
- Contact the Police, then your credit provider(s) if you discover information
on your credit file has been caused by another individual fraudulently using your
identity details. Keep notes of all your conversations with these bodies, including
names, dates and contact numbers.
For further assistance, our Customer Service Centre can be contacted via:
Phone (free call): 1300 762 207
Email: assist.au@vedaadvantage.com
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