With credit reports playing such a huge part in many parts of our lives – including whether or not we can get a loan, renting an apartment, getting a new job and even securing your next rental property – it’s important to understand them inside out says Peter DiCaprio.
From understanding the different types of credit reports available to knowing what information is on yours, we’ve got all the information you need to know.
What is a credit report and what does it include?
Your credit report includes personal information such as your name, current and previous addresses, date of birth and identification details such as your driver’s license number. It also includes the status of any loans or debts that you have had in the past, such as whether you have been declared bankrupt or defaulted on a home loan in the past.
How credit reports work for loans and finance
Lenders usually request your credit report before they will lend to you. This is so that they can assess what risk they take by lending to you – after all, credit providers want to avoid being repaid with default or bankruptcy. The higher your risk, the more likely you are to be charged a higher interest rate on the loan.
What information is found in my credit report?
Your credit report will contain all of your personal identification details including name, address and date of birth. It will include details on how well you have paid any debts in the past, such as whether you have ever been bankrupt or had a home loan foreclosed. It will also include details of all your credit accounts including loans and mortgages, along with any defaults such as missed payments or skipped installments explains Peter DiCaprio.
Who can access my credit report?
Your credit report is only made available to those who you have given permission to see it – typically lenders who want to determine whether they should offer you a loan product. Credit providers do not have free reign over your personal information however – if they wish to access your credit report then they must first prove that it is necessary for assessing a potential customer’s ability to repay a debt on time.
What does not appear on my credit file?
In many cases, not all of your credit history will appear on your credit report. That includes any accounts that you have since closed, late payments that occurred more than 7 years ago and bankruptcies that occurred more than 10 years ago.
Will I notice if someone looks at my credit report?
You should be inform if someone has look into your personal information. Including your credit report – by way of a written notice from the relevant debt collector or lender. However it can take up to 4 weeks for this notification to be. So it’s important to remain vigilant for anything suspicious. No matter how long ago you may have checked explains Peter DiCaprio. If you do suspect something is wrong then we recommend contacting Veda Advantage. Who is Australia’s official provider of individual consumer reports such as credit reports.
What assessment method is used to obtain my credit report?
The Fair Credit Reporting Act prescribes that all information include on your credit file. Be obtain through a ‘comprehensive, accurate, relevance and up-to-date’ method. Information from multiple sources including your creditors and the courts will be combine. To reflect as much as possible about your current financial situation.
Your credit report details your financial history and is critical. For anyone applying for a form of finance such as a home loan or personal loan. It lists all of your past debts, whether they have been repay or not. And any defaults you have had in the past. Understanding how credit reports work prior to applying for a loan can help with making an inform decision. About the kind of finance that is right for you.
As you can see, your credit report provides potential lenders with a full financial picture of yourself. Which they can use to assess how risky it would be to give you credit. We hope this article has taught you more about what’s actually in your credit file and why that matters. If you’re looking for the most comprehensive information then we recommend checking out Veda Advantage. Australia’s official provider of individual consumer reports such as credit reports.