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Frequently Asked Questions
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Frequently Asked Questions
Here you'll find the answers to all of your credit report questions. The Q&A covers a range of topics, including understanding your credit file and how to protect yourself against credit fraud. Read More...
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| Credit Report FAQs |
What is a credit file?
Does everyone have a credit file?
What is on my credit file?
Who starts my credit file and how?
Should I have a copy of my credit file?
Once I have a copy of my credit file, is it easy to understand?
Why was I declined credit?
Need Help Understanding Your Credit File?:
How long is the information held in my credit file?
What do I do if the information on my credit file is incorrect or needs to be updated?
How long does it take for information on my file to be updated?
What is my credit rating?
What is my credit score?
Overdue Accounts (Defaults):
What is a Overdue Account (default)?
What is a clearout?
What does "current" mean?
What happens to the record of an overdue account on my credit file once the account has been brought up to date or paid?
Can I have the record of an overdue account on my credit file removed?
Credit Fraud:
What is credit fraud?
What should I do if someone has used my identity to obtain credit?
Can I protect myself against credit fraud?
About Credit Providers:
Do all credit providers that I make applications to check my file?
Is a credit check related to the amount I want to borrow?
Who can access my credit file?
Can credit providers access my file without my permission?
What is a credit file?
A credit file is simply a report that records information (credit, identity and public that is of relevance for credit assessment purposes):
- Who you have applied to for credit (banks, utilities such as gas , electricity, telephones, finance companies)
- The amount of credit you applied for
- The type/purpose of credit sought (overdraft, interest free, home loan, credit card)
Does everyone have a credit file?
No. Only people who are, or have been, credit active in the last 7 years will have a credit file.
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What is on my credit file?
Information about you and your credit history including:
- Personal details such as: name: residential address: date of birth: drivers licence number:
- Credit applications and enquiries you have made during the past 5 years
- Records of some current credit accounts
- Overdue Accounts (Defaults) which may have been listed against your name
- Bankruptcy information,
- Judgments
- Public record information such as Directorships and Proprietorships
Who starts my credit file and how?
Your credit file is initiated by the credit provider the first time you apply for credit or information we have obtained from public authorities, eg. Directorships, Proprietorships, Bankruptcy or a default judgment. The credit provider inputs information directly into a database that includes your:
- Name
- Sex
- Date of Birth
- Drivers licence number
- Current & previous residential address
- Type of credit applied for
- Amount of credit requested
Once your initial credit file is set up, subsequent credit providers update your file by adding the relevant credit application details and any change of address information.
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Should I have a copy of my credit file?
Yes, for a number of very good reasons.
- Banks, retailers and credit providers rely on your file when deciding whether to lend you money or not
- Your credit file is about you and your reputation as a borrower. You should know exactly what it contains
- Credit fraud is a growing issue all over the world. If you do not check your file you will not know if someone is using your identity to borrow money – until it is too late.
Once I have a copy of my credit file, is it easy to understand?
Yes. Click here to view a sample report.
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Why was I declined credit?
The decision to decline your application for credit is made by the credit provider. The first step in identifying why you were refused credit is to look at a copy of your credit file.
You may discover:
- you have overdue accounts (defaults) you had forgotten about.
- the information on your credit file is incorrect.
- someone has been using your identity to obtain credit fraudulently and has defaulted on the payments.
If this is the case, please click on 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 could wish to rectify:
Overdue Account Details
- If you have an Overdue Account (Default) on your file that has been paid but has not been updated, then contact the credit provider listed.
- Should you discover an Overdue Account (Default) on your file which is not yours (you may not recall having an account with that company). Contact the Credit Provider and give them the reference number on your credit file so they can investigate the matter for you.
Overdue Account Disputes
If you have an Overdue Account (Default) that you are currently disputing with the credit provider; complete and return the File Update Form provided with your Credit File, including full details of the dispute, to an investigations department. The entry can then be marked 'disputed' until the matter is resolved.
Public Record Information
Your file may contain items on the public record such as:
- Judgement and Writ/Summons information obtained from the various Courts around Australia.
- Bankruptcy/Part X/Part IX information obtained from the Insolvency and Trustee Service Australia (ITSA) in each state.
- Directorship information obtained from the Australian Securities and Investment Commission (ASIC).
Should any of this information be incorrect, your reputation could be at risk. You should complete and return the File Update Form provided with your credit file, plus proof to support your current situation, to a department who handles these criminal matters , who will update your file within 30 days.
Correcting or Updating Identity Information
If there is any information that is incorrect, such as an address or your date of birth, simply complete and return the File Update Form included with your credit file. The agency will ensure your details are updated.
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How long does it take for information on my file to be updated?
The amount of time taken to update information on your credit file can vary.
If a credit provider is updating an entry they have placed on your credit file, the maximum delay will be five 5 working days from the time they notify the agency of the required update. Depending on the method used by the credit provider, the update may be completed much more quickly.
If you need the agency you registered with to update an entry for you, we will need you to notify the agency in writing. It is a good idea to also provide the agency with any documentation that may assist them eg proof of payment. Once the agency receives your written request, they will verify the information you have provided and then update your credit file accordingly.
Legislation allows the agency 30 days in which to complete this process; however most times a response is issued much earlier.
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What is my credit rating/credit score? Some credit providers may score or rate an application as part of the process to assess the risk involved in providing credit to you.
This technique involves building a score or credit rating based on the information you provide on the application form and the information held on your credit file.
Information supplied by you on your application form to the credit provider may, on its own OR in conjunction with the information that is held on your credit file determine that you did not meet their lending criteria.
Each credit provider applies their own rating or score to each item of information used in the credit decisioning process, so one credit provider may approve your application whereas another will decline it.
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How long is the information held in my credit file?
- Credit applications, enquiries and overdue accounts are held on your file for 5 years
- Bankruptcy information is held on your file for 7 years (prior to January 1998, Bankruptcy information was held for 5 years)
- Clearout information is held for 7 years (if listed before 31January 2000, the information is held for 5 years)
- Court Judgments are held for 5 years (excluding NSW & ACT)
- Queensland & WA Writs & Summons are held on an individual’s file for 2 years, Company/ Business files for 4 years
- Identity information, which includes name, date of birth, sex, drivers license, address history, and cross-reference names (if any) are held for the life of the credit file. This information is used to distinguish the credit file from others held in the database.
- Purge dates are calculated on the date the information was added to the file, and are based on the time limits provided in the Privacy Act 1988.
- Files are scanned each month and out of date information is automatically purged to ensure the files are accurate.
NB: Even when an overdue account or clearout has been brought up to date or paid in full, it will not be removed from your file.
All overdue account listings remain on file for 5 years from the date of listing. All clearout listings remain on file for 7 years. The fact that an account has become overdue, and then been paid becomes part of your credit history.
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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 could wish to rectify:
Overdue Account Details
- If you have an Overdue Account (Default) on your file that has been paid but has not been updated, then contact the credit provider listed and get them to look into the matter. Your file should be updated within five 5 days of the credit provider notifying all parties that the account is paid.
- Should you discover an Overdue Account (Default) on your file which is not yours (you may not recall having an account with that company). Contact the Credit Provider and give them the reference number on your credit file so they can investigate the matter for you.
Public Record Information
Your file may contain items on the public record such as:
- Judgement and Writ/Summons information obtained from the various Courts around Australia.
- Bankruptcy/Part X/Part IX information obtained from the Insolvency and Trustee Service Australia (ITSA) in each state.
- Directorship information obtained from the Australian Securities and Investment Commission (ASIC).
What is a Overdue Account (default)?
- An Overdue Account (Default) is usually a debt of over $100 that has owed for a minimum of 60 days. NB: Telecommunications and utilities accounts such as electricity and gas bills may be reported when they are $20 or more in arrears.
- Overdue accounts (Default) may only be listed once steps have been taken to recover the whole, or any part of the amount. The credit provider must have requested the borrower, either in person or in writing, to pay the outstanding amount.
- Once the account is paid, or brought up to date the credit provider is obliged by law to amend the credit file to show that the overdue account has been paid. Overdue Accounts (Default) remain listed on the credit file for 5 years, unless an investigation proves the overdue account was listed in error.
- Potential credit providers may not look favourably on customers with a history of overdue accounts.
NB: Even when the overdue account has been brought up to date or paid in full, it will remain on file. All overdue account listings remain on file for 5 years from the date of listing. The fact that an account has become overdue, and then been paid becomes part of your credit history.
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What is a clearout?
A clearout is defined as a "confirmed missing debtor".
- A credit provider must have made reasonable efforts to contact the debtor in person or in writing.
- The debt can be reported immediately – in these cases credit providers do not have to wait until payment is 60 days or more overdue before listing the debt on a file.
- These debts remain on file for 7 years from the date of listing.
What does "current" mean?
If you have an overdue repayment that you bring up to date, the credit provider will update the status of listing to "current". What this means is that although you still have a balance outstanding with them, your payments are now up to date.
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What happens to the record of an overdue account on my credit file once the account has been brought up to date or paid?
Once the account is paid, or brought up to date the credit provider is obliged by law to amend the credit file to show that the overdue account has been paid. Overdue Accounts recorded as a payment default remain listed on the credit file for 5 years while Clearout listings remain on the file for 7 years.
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Can I have the record of an overdue account on my credit file removed?
An overdue account is only ever removed early from a credit file if it has been listed in error. If you do wish to dispute an entry on your file, please contact the credit provider directly.
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What is credit fraud?
One of the most common forms of credit fraud is committed by 'stealing' the identity of another individual. Someone obtains your identity details and uses them to obtain credit for themselves, leaving you with the potential liability for this debt, a damaged credit reputation and the inconvenience of amending your credit file.
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What should I do if someone has used my identity to obtain credit?
Credit fraud is a crime. If you believe that information held on your credit file has been caused by another individual fraudulently using your identity details:
- Obtain a copy of your credit file to confirm someone has used your identity
- Contact the police and report the crime.
- Contact the credit providers involved and inform them of the fraudulent activity, otherwise they may hold you responsible for any bad debt incurred
When dealing with credit providers keep notes of all the conversations you have, including names, contact number and the date you spoke. Also ask questions to ensure you understand the process as each credit provider may have their own processes for handling fraud.
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Can I protect myself against credit fraud?
Yes. To reduce the chances of credit fraud happening to you follow these simple rules:
- Sign all your new credit cards as soon as you receive them.
- Store your cards and personal ID items in a secure place.
- Shred any paperwork that contains your personal details or account details before throwing it away.
- Contact your financial institution immediately if your cards are lost or stolen.
- Keep your PIN (Personal Identification Number) confidential and separate from your card.
- Don't disclose your personal identification information to anyone.
Do all credit providers that I make applications to check my file?
No. However, most credit providers considering applications for credit, or the supply of goods and services where payment is deferred, choose to do so to ensure their decision to approve or decline an applicant is sound.
It makes good sense that understanding an applicant's past credit activities, gives credit providers a better assessment of the potential level of risk involved in approving an application for credit.
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Is a credit check related to the amount I want to borrow?
No. There is no dollar limit that triggers a credit file check. In fact applications for services such as electricity or mobile phones may even appear as zero, because the amount of the applicants potential monthly bill is unknown.
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Who can access my credit file?
Credit providers who you have applied to for credit, or goods and services where payment is deferred by a minimum of 7 days may access your file.
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Can credit providers access my file without my permission?
No.
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