The Lender Says I Have Bad Credit, How Can I Check It?
Bad Credit Loans > Bad Credit Loan Articles > Article: The Lender Says I Have Bad Credit, How Can I Check It?If you've been turned down for a loan or offered high financing rates because of a poor credit rating, you should understand why. You can obtain and examine your credit report to determine what information is damaging your ability to get credit. Credit agencies keep credit files on people and businesses who have used their credit during the past seven years. Using the information in the credit file, these agencies give individuals a credit rating.
The credit rating helps lenders determine whether or not to extend a line of credit and what interest rate to offer the borrower. Lenders cannot access your credit file without your permission.
Your credit file includes information regarding:
- the date the credit was applied for,
- whether the credit account was a personal or joint application,
- who the lender was,
- how much credit was applied for and how much was granted, and
- the type of credit that was applied for,
Credit files also include personal information about the individual. This information is used to identify the individual, and to group them into credit assessment categories. The credit file includes information regarding the individual's:
- name, address, driver's licence number, date of birth, and employment record
- current credit accounts
- overdue or defaulted accounts
- bankruptcy records
- court judgments or writs & summons
- public records
Your credit file is updated every time you apply for new credit.
How to Check Your Credit
There are two main credit bureaus in Australia: Veda Advantage and Dun and Bradstreet. You can get your credit file by requesting the information via post, or visiting the credit agency's website.
For Veda Advantage, mail inquiries to:
Veda Advantage Public Access
P.O. Box 964
North Sydney, NSW 2059
You can also request your credit file from Veda Advantage by visiting http://www.mycreditfile.com.au and clicking "Order Online Now."
For Dun and Bradstreet Australia, mail inquiries to:
Dun & Bradstreet (Australia)
Public Access Centre
PO Box 7405
St. Kilda Rd
VIC 3004
You can also request your credit file from Dun and Bradstreet by visiting http://dnb.com.au/.
Both Veda Advantage and Dun and Bradstreet offer free copies of your credit file by post within 10 days. Both companies also offer online credit files within 1 business day for a cost ($25 for Dun and Bradstreet, $29.95 for Veda Advantage).
To obtain your credit file, you must provide the credit bureau with the following information to verify your identity:
- Full name
- Date of birth
- Driver's license number
- Current and previous home address
- Current and previous employers
- The last lender with whom you applied for credit
- A contact telephone number
- Signature
Each credit bureau maintains different records regarding each individual, so you should request a copy of your credit file from both agencies on a regular basis.
Overdue Accounts on Your Credit File
There are two main types of overdue accounts: clearouts and payment defaults. Overdue accounts reported as a default on your credit file will remain on the report for five years from the date of listing. Overdue accounts reported as a clearout will remain on the file for seven years from the date of listing. These entries will remain on your credit file even after the account has been resolved; however, the entry will be updated to show that the balance was paid in full, settled, or brought up to date.
If you see an overdue account on your credit file that is not yours or an account that you own that is not overdue, you must immediately contact the credit provider (lender) to inform them of the discrepancy. Give the lender information about the account, including the reference number, so that they can conduct an investigation of the matter. If the lender finds that the account was incorrectly reported as yours or as overdue, they are then required to contact the credit agency so that the incorrect information can be erased from your credit report. You should also send a copy of the dispute to the credit agency so that the account in question can be marked as "disputed" until the issue is resolved.
Lenders use the information in your credit file to decide whether or not to lend you money. Clearly, the information in your credit file is important to your financial future. You should monitor your credit file periodically to ensure that all of the information presented is fair and accurate, and to protect your identity from fraudulent activity.
What to do next
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