Your Personal information:

Your personal information will include your name in full, (including former names and any aliases), your Driver’s license number, and birth date. Your report will also include all current and previous past addresses.

It is very important to check for typos and incorrect identity information, as this too can affect your score negatively especially if your address is entered incorrectly and it appears as a ‘new address’ on your report.  Because too many addresses it can affect you credit score as you are seen as a higher risk from moving around from place to place or state to state.

You need to make sure that all the personal information included in your credit report is correct. Every part of your credit report needs to pertain to you: not your dependents, not your former spouse, and especially not a stranger with the same or similar name.

As a misspelled name (even just an incorrect middle initial), or an address you don’t recognize, or even an errant digit in the Driver’s license number that isn’t yours are all indicators that your report may have been confused with someone else’s or that a cross file has been unfairly linked to your report.

Your credit report will also include all current and previous past employers. The Employer history is included in the personal information section of the report. Also check this, as it’s included on your credit report to verify your identity, so finding incorrect information like company names you don’t recognise or employers you never worked for is important to be corrected and flagged and should be addressed.

The personal information that is used to assist in identifying you includes:

  • Name
  • Gender
  • Date of birth
  • Driver’s license
  • Employer
  • Current Address/address history

Your Credit History and Consumer Credit liability Information:

Your credit history is the largest section of your credit score and report, and it is the most important aspect of the report. Your credit score is calculated with quite a few factors, including but not limited to:

  • All Amounts owed (30% percent), the total length of credit history (15% percent), a new credit (10% percent) and a credit mix (10% percent). But it is your payment history that determines the majority of your overall credit score calculation (35% percent).

Since your credit history includes the most important pieces of data used to determine your credit score, you’ll need to spend time carefully checking for errors in this section of the report. Should you find any errors you are able to dispute these with the credit reporting bodies directly, or you can speak with a credit repair specialist if you require assistance with this.

The credit history of your credit report will include the following components:

  • Current and closed accounts from the past 24 months.
  • This includes individual accounts and joint accounts also.
  • You’ll see revolving credit and open accounts, such as credit cards and home loans, lines of credit, as well as instalment loans, like payday loans, personal loans, auto loans, or other mortgages, included in the credit report.
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The consumer credit liability information section may will contain details about the credit accounts that you have open, or had open in the last 2 years, including but not limited to the following:

  • The type of credit account that you have accessed.
  • The credit limits for each credit account.
  • The credit provider and the credit provider rating.
  • The Dates the accounts were opened and closed

Repayment History Indicators (RHI):

Also, your credit report may also have information about your payment history for your credit cards and other loans (e.g., personal loans and home loans) – that is, whether you’ve made your minimum payments on time.

This is very important information as it tells the new credit provider how you’ve conducted those accounts, which gives them an indication of how you’re likely to repay the new debt and any future potential conduct issues that might arise with them.

This is a record of all your past loan payments, particularly whether the minimum loan payments were made on time. Negative accounts will show any loan payments that are missed.

Overdue amounts may be as 30, 60, 90, 120 or 180 days + late. They are listed with numbers, ticks or crosses or zeros ‘0’ and ‘R’s The numbers indicated the length of the overdue payment.

The ticks indicate in some credit reported reports that it is paid on time as well a ‘zeros’ on others. The good information is usually in ‘GREEN’ while the negative information is usually in ‘RED such as late repayments.

The ‘R’ Indicates that the information has been repressed from the report, this may be if you have a Moratorium or Hardship Arrangement with the financial institution where they are required by law to not record the late repayment information during the agreed period. As there are many different formats for these reports, you may see the way in which this information is presented can be slightly different depending how you and where the report was extracted from.

Your loan payment history is recorded on a month-by-month basis. Other lenders will see a 24-month history of your payments (after the 24 months, the information is removed from your credit report).

Only banks, credit unions and other types of finance companies can report or access repayment history information. Phone, gas, and electricity providers are not able to report or access this information. This means that your credit report will not show whether you’ve paid your phone or utility bills on a month-by-month basis.

A ‘grace period’ of 14 days (applied to the first overdue payment) is allowed. During this time, a credit provider will not report a late payment to a credit reporting body. If the amount owing is paid during the grace period, there will be no record on your credit report that you made a late payment.

However, once the grace period has passed, if you have not made the full payment of the amount owing, the credit provider may report this as a late payment to the credit reporting bodies.

Current balances: This includes the current loan balance when the credit provider or bank reported to the bureau and the highest ever balance on the loan account. It is important to note that not all credit providers are currently required to participate in comprehensive credit reporting. As it is now required by law for major banks and some other major providers of credit.

Names of credit providers and lenders:

Every account listed will include the name of the lender or credit provider and the date when it was opened. Credit reports don’t include specific information about individual purchases.

Credit limits or loan amounts: The current credit limit for revolving accounts and the original loan amount for any fixed installment accounts or loans amounts.

Account opening and/or closing dates

Account status. You may see accounts listed as open, closed, or current.

Even after you’ve closed an account or paid off a loan, the accounts will appear in your credit history for a period of time. This includes any Negative credit information — including late payments, unpaid loans and sold off loans and accounts (to debt collection or debt purchase companies).

These can remain on your credit report for more than 2 years when it is transferred to them and becomes an ongoing debt. Credit information about closed accounts in good standing will most certainly have a huge positive influence on your credit score.

It’s important to carefully review all account details, particularly payment history as this makes up over 30% of your overall credit score.  Scrutinize your credit history to check to the following:

That the account number, account name, balance amount, payment history, and payment status are all correct. Check to make sure that the account’s current credit limits or original loan amounts are correct. If the credit limit listed is lower than the one you have, it may impact your credit score.

Other potential errors in this section include:

  • Closed accounts reported as open
  • Accounts in good standing incorrectly reported as payments reported as late when you paid them on time
  • Incorrect dates: date account opened and/or closed, last payment or first late payment
  • The same account listed multiple times under the names of different creditors (this can happen with accounts sent to debt collections and re-purchased by them)
  • Listings that were listed whilst in dispute with the credit provider

Make sure that every account listed belongs to you. If you don’t recognise a credit provider, or discover an account you didn’t open, or find an incorrect balance, or discover another problem, then you need to dispute the error.

One credit report explanation could be outdated information, but incorrect account information can also be a red flag for identity fraud. We Fix Credit can assist with these matters efficiently for you. We have the experience and expertise to resolve these matters on your behalf.

Public Records, Court Actions, Judgments and Court Writs

The Public records related to debt will be included in your report. These could include Bankruptcies, and Part 9 Debt Agreements. Public records stay on your report for five years whether they are paid or not.

With Bankruptcies, although you may be discharged from the bankruptcy after 3 years, it will remain on your credit file for the 5-year period from the commencement of the event.

Court Judgment information is considered public record and shared by the court with the credit reporting agencies.  These too are listed for 5 years from the date of the Civil Court Judgment whether or not they are paid or unpaid.

Information about company directorships you’ve held, when you became a Company Director and when you ceased the directorship is also included under the Public record section of your personal credit report.  Lenders may also want to check the individual company reports that you are a director of for any adverse credit information associated with that company.

Credit Enquiries/Applications  

A credit enquiry is a record on your credit report that shows who accessed your information and when. This section will contain information about not only the applications for credit you’ve made, including the date of the application, however also the type of credit and the amount you applied for.

Therefore, too many unsecured loan application facilities in a short time will severely affect your credit score negatively.

It is important to note, that It does not show whether the application was successful or not. You will be required to provide some kind of ‘Privacy Acceptance’ to give the credit provider permission to perform the credit check on you.

If you notice that you have enquiries that you did not give permission for the credit provider to perform, then there could be grounds to have the enquiry removed from your credit file. Note that not all acceptances require a physical signature, in many cases an electronic acceptance is all that is required along with verification of your identification.

There are two types of credit enquiries:

Soft enquiries happen when you check your own credit. Soft enquiries, also known as soft credit checks, also happen when current creditors check your account or when brokers may do a check as an authorised agent.

Hard enquiries are more serious. These appear when lenders check your credit when you apply for new credit cards, credit card limit increases, loans or mortgages, Telecommunications accounts, or utility accounts.

While soft Enquiries do not affect your credit score, however each hard Enquiry usually drops your credit score by a few points. The more you make for certain lenders in a short time, the greater your score is reduced each time.

Hard enquiries matter because they can indicate increased risk to lenders as they see that you may be attempting to obtain more credit, the more frequent and closer together these applications enquires are, the more adverse effect this will have on your overall credit score.

These Enquiries listed are automatically removed after five years.

Other Types of Enquiries

In addition to the credit provider, some other businesses that are involved in the credit application can access your credit report, such as businesses that offer lender’s mortgage insurance (which is insurance that protects the interests of the credit provider if you are borrowing money to buy a home without a big enough deposit).

“Understanding your credit report helps you know where you stand so you can work on building your credit score. Regularly reviewing your credit report at least once every three months also gives you a chance to correct any errors to make sure your credit report is an accurate representation of your financial situation”.

 

Consumer Credit Defaults

The Consumer Defaults section provides you with more information about any defaults on your consumer credit that a credit provider has listed about you.

A default is a formal notification from your credit provider to a credit reporting body that you are 60 days or more overdue in making a payment on a debt where the outstanding amount due is at least $150.

Before listing a default, the credit provider will have written to you at least twice by way of sending a 6Q and 21D notice (pursuant to the Privacy Act 1988) to say that they may list a default if you do not make a payment.

A default stays in your credit report for 5 years. If you subsequently pay off the default, your credit report will be updated to show this – but the default will stay in the report for the 5 years whether it is paid or unpaid.

We Fix Credit may assist you in most cases to remove these credit defaults from your credit file before the 5-year expiration date.

 

Commercial Credit Information

Is an overview of the credit accounts, defaults, infringements, enquiries of any commercial credit accounts you (or a company of which you are a director) currently hold or have held with a credit provider?

Consumer Serious Credit Infringements

A serious credit infringement is a serious indicator of bad conduct by a debtor. It can indicate that the credit provider considers the debtor has acted fraudulently, such as lying about their financial situation when applying for the loan, or no contact being made or attempt or intention to repay the facility.

Serious credit infringements stay on the credit report for 7 years.

It can also mean that the credit provider believes that the debtor has intentionally failed to comply with their credit obligations, such as moving address and failing to tell the credit provider. In this case, the credit provider must have tried to contact the debtor for more than six months without success, including taking certain steps to establish contact with the debtor.

This type of serious credit infringement can only be reported if the credit provider has first reported a default – however, it will be removed if the debtor subsequently pays the debt (although the default will remain for 5 years).

Access information

To ensure your privacy, when you get a copy of your credit report directly from these different bureaus, and it will list everyone who has accessed (or investigated) your credit report. The law sets out who and for what purposes your credit report can be accessed. This includes:

  • When you are accessing your own personal credit report (i.e., when you get your free credit report from credit reporting bodies).
  • People and businesses that are acting on your behalf, like a mortgage broker
  • Various Subscription websites that are not direct credit reporting bodies that provide you with your free credit score, like creditsavvy.com.au, creditsimple.com.au and getcreditscore.com.au. generally, these companies will access your report or score on your behalf then provide you with a summery or the report from a particular credit bureau such as Ilion, Equifax, or Experian.
  • They then will provide you that information on their own platform which is the reason it will appear differently presented to you. Often these companies will provide you with this information so that they may use your information to market other products or services to you as well.

Credit providers and their agents for permissible purposes – in addition to getting your credit report when you apply for a loan, a credit provider may access it for a few, strictly limited purposes such as helping them to collect overdue payments.

This will also include companies that have purchased overdue debt that you may have incurred. Often the debt collection or debt purchase companies will access your reports regularly to see if any changes of personal information such as your address or employment details have changed to that they can chase you for the debt they have purchased.

Your credit report may have one or more sections listing who has ‘accessed’ the report. This information is shown to you but is not shared with a potential credit provider and won’t impact your loan applications or your credit score.

 

It is extremely important to regularly check your Credit Report

You should get into the habit of checking your credit score report for errors that could hurt your credit score or indicate identity theft. Potential errors include the following:

  • Unfamiliar accounts and account numbers you don’t recognize.
  • Any addresses you’ve never lived at.
  • Incorrect reporting of account status, such as accounts incorrectly reported as late or no longer open.

At, We Fix Credit, we can provide you with credit fix solutions that are effective and efficient. We are an ASIC licensed credit repair company that offers you the peace of mind and transparency that you need when choosing an expert to assist you with the restoration of your financial reputation.

We offer a free no obligation assessment of your circumstances and we will give you an honest answer of what the possibilities are of achieving the positive outcome you seek.