This is just a brief overview of understanding a Veda Report but if you would like to discuss this topic further, please refer to the Veda Company Website
or contact Jade Boat Loans Online or phone 1300 005 233
How to read and understand your Equifax credit report
Managing your credit can be a very sensible part of your overall financial strategy and can be especially beneficial when you apply for loans, credit accounts and other finance deals. A credit management strategy includes knowing what creditor providers know about you and how that information may impact on your loan applications.
You know your own credit history but do you know what of that information is made available to others?
Fortunately, accessing your credit file or credit report as it is widely known, is a reasonably simple process and understanding the information it contains may enable you to make better financial decisions.
Accessing Your Credit Report
Veda is considered the leading credit information company in Australia and you can get a copy of your credit report through them, either online or by phone.
A fee is payable, however, there are certain circumstances under which a free copy of your report will be made available.
Credit File Information
As a credit information provider, Veda compiles information as provided to them by banks, lenders, credit providers as well as publicly available information on your credit report.
This includes personal information, consumer credit information, commercial credit information which relates to any business interests you may have and serious infringements.
Credit providers access your credit file when you apply for a loan or credit with them and use this as a tool so they can assess your suitability for finance.
Positive, Neutral and Negative Information
Your credit report contains neutral information including your current name and any other names you have been known as; your current address and your address history going back quite a few years; you date of birth, driver’s licence number; gender and employment history.
It also lists all your current bank accounts and credit accounts, even if they are paid in full and not overdue.
Since 2014, positive information is also included in credit reports. Positive information such as payments made on time each month is clearly shown for each account, which is beneficial for your good credit history.
As this process has only been in place for a relatively short time, it may take time for all your positive credit information to appear on your report as Veda relies on the providers for information.
If you notice that some of your past credit accounts, which you have paid on time etc, do not appear on your credit report, you can make a request to the credit information company to have them included.
Your applications for credit will also appear on your credit report. This shows other credit providers who you have already applied to and perhaps been declined or accepted.
The negative items which appear on your report include overdue accounts and payments, payment defaults and serious infringements.
Meanings and Significance
Some of the information on a credit report is reasonably straight forward and easy to understand, however, some terms may not be so familiar to you.
Overdue accounts appear as payment default or clearout. A default on a consumer account is a debt of $150 or more which is currently 60 days or more overdue.
The details are listed under each account so you can clearly see which of your accounts are registered as in default. Under law, in order to have this default listed on your report, the finance company must write to you advising that this payment is overdue and write to you to advise that the default will be listed on your credit report.
If you are applying for credit, the provider is not likely to look positively on a history of overdue accounts and it may cause your application to be declined or you may be offered a higher interest rate loan.
Check each account against your own records and if there are any errors, you can dispute the entry with Veda and have it corrected or eliminated.
Clearouts are considered more serious infringements and are defined as being an overdue account where the party has left their address and not advised the credit provider of their new address and hence are not locatable. Before having this entry listed on your file, the finance company must have made attempts to contact you and a period of 6 months must have passed.
This is significant for anyone who moves regularly – ensure you advise all your credit companies, banks and other lenders of your change of address.
Serious infringements remain on credit reports for a period of 7 years.
When you bring an overdue account up to date by paying the debt, the credit provider must notify the information provider and these accounts will be noted as, Payment Status – Current.
If you see any accounts on your report which you consider are current and up to date but are not listed as such, you can notify Veda yourself and request the account information be updated.
Your Repayment History for each of your accounts is listed, month by month over several years. It shows when you made payments on time and when you were late with payment.
More Information On Credit Reporting Can Be Found At:
http://www.oaic.gov.au/individuals/faqs-for-individuals/credit-reporting/
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