Having a blemish on your credit record mightn't seem like such a bad thing, until the day comes when you need to apply for a new form of financial credit, like a credit card, car loan or even a mobile phone, and you're knocked back.
You see, the financial institution or bank will run a credit check on your application and if you've been credit-active they will receive a portfolio on whether you're a good credit risk or not.
This report outlines things like whether you've taken too long to repay a debt, whether you have any current overdue accounts and other personal details they deem relevant.
It's basically a way that the financial institution can check whether you're going to repay the loan before they go lending you their money.
If you're not sure of the details of your credit rating, it might be worth taking the time to check it out, especially if you're planning on borrowing any time soon.
You can get a copy of your report through a number of credit reporting agencies, one of which is Baycorp Advantage, which holds the credit history files of over 14 million Australians.
To get a free copy of your file, you'll need to apply in writing (Baycorp Advantage Public Access, PO Box 964, North Sydney NSW 2059) or over the internet ( www.mycreditfile.com.au ) with the following information for identification: full name, address, previous address (if less than three years at current address), date of birth and driver's licence number.
If you do have a bad record, and you believe the details on your file are incorrect, you can then tell Baycorp, which will verify the accuracy of the disputed item with its source and let you know of the result with an updated copy of your file.
Here are some key points to remember:
- You do have the right to access your personal files kept by credit reporting agencies at no cost (unless you'd like your report turned around quickly).
- The information must be provided within 10 days of a request being made.
- You have the right to have incorrect information changed.
- You must be informed before you are listed as a defaulter with a credit bureau.
- A credit provider may only report you to a credit reporting agency as a defaulter if the default is considered to involved a serious credit infringement or 60 days has elapsed since payment was due.
