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:

• Understand what a credit file is
• Check your credit file
• What to do if you are declined credit
• What to do if you have an overdue account
• Maintain your credit worthiness
• Dealing with identity fraud

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
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• 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 on-line. The cost is $27.00 (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. Read more about avoiding being a target of fraud.

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.