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Part 9 & Bankruptcy Glossary Terms | What Does A Credit Report Look Like

Apply for a Copy of your Credit File

How to Apply for your Credit File

What is a credit report ?

A credit report is, essentially, your credit history (when you took out loans, and when and if you paid them back and on time) and how much you owe each month as well as how much credit you may access. A lender is going to look at your credit report to see if they will likely get there money back or if you are risky business. Depending on how good your financial outlook is, your credit report can effect whether or not you get the loan, and at what interest rate.

And the higher the credit risk, the higher the interest rate. Although the credit report does not tell the lender that you are a good or bad credit risk, it does give them the facts they feel they need to make that decision.
 

What's in your Credit Report ?

Since the credit report is a critical part of your financial picture, it is important that it be accurate so you can obtain loans when you need them, at the best possible rate. Here is what is in the report.


Personal Identification Information

Quite a lot of personal information is on this report from the more obvious drivers license number, current address and phone, and birth date to the less apparent employers, both past and present. If you are married your spouse's name is most likely included as well.


Your Financial History

The report will list the details of your bill paying past including dates, amounts lent and repaid, monthly payments, and any other specifics of transactions with banks, stores, finance companies and other concerns that may have lent you money. If you were late in paying your bills or missed it altogether, this is where it shows up.

Your Public Records

If you have had any judgments against you in court, or if you have filed for bankruptcy, it will be indicated in your credit report.

 

Interested Parties

Any company that anticipates offering you credit and has accessed your credit report, is listed here as well as anyone who has authorization to look at your report and taken advantage of that permission. Also listed are companies that want to extend you credit but want to make sure you meet their minimum criteria. Even though they don't actually get your credit report, they do get your name and address. That's how all those credit card and insurance companies can send you those "pre-approved" credit offerings.

A lender who sees a number of recent requests for your credit report from credit card companies may assume you have applied for a lot of credit recently and therefore may turn you down, even though the assumption may not be valid. Each lender has guidelines as to what "excessive inquiries" over a period of time means specifically. It may also be true that you have given your name and address to a retailer or car dealer for instance, but not officially applied for credit. However, the merchant then requests your credit report to get a better idea of what products you might be interested in according to your buying history. Then an actual lender who sees that there were inquiries from three or four retailers but no credit extended, might assume that you were turned down for these loans or credit cards. Therefore, do not give your name and address to a retailer unless you are ready to apply for credit.

Disputed Information

If you have accessed your report and find incorrect information, you may be able to make a statement correcting the report's information.
 

What information you will not find in your Credit Report

What you won't find in the report?

Your bank account information, yearly income, race or religion.

How do Credit Reporting Agencies get your information?

Since you did not write your credit report yourself, how do they get all this information? Anytime you apply for credit, you fill out a form with extensive information. The company extending you the credit contacts a credit reporting agency, otherwise known as a CRA, requesting your credit report. If you are approved for credit, then all that information you have provided is sent on to the CRA. As you pay back the loan, that data is sent along as well. Every month all your credit information from multiple sources is reported to the CRA.

There are many credit bureaus around the country that gather and report your credit activity to any or all of the national credit bureaus.

 

How long do the defaults stay on your credit file for?

Court Judgments, credit/loan applications or overdue accounts (over 60 days) are listed on your credit file for 5 years from the date of listing and NOT the day the infringement or judgement occurred.

"Clearout Listing" - This term is used when a creditor has tried to contact you unsuccessfully or cannot locate you at the address you where known to live at the time. This type of listing will remain on your credit file for seven (7) years.
 

Firstly obtain a copy of your credit file. Is the information correct or not? If the personal information or registered defaults are incorrect, you can make a complaint.

Secondly, you can write to the Credit Reporting Agency directly detailing your complaint or this proves to be unsatisfactory, you can contact the Consumer Credit Legal Centre in your particular state.

Thirdly, if all the above proves to be unsuccessful, you can make your complaint to the Federal Privacy Commissioner: Phone 1300 363 992 or visit them at www.privacy.gov.au.

Step 1: Get a copy of your credit record. If the information in your credit record is wrong or misleading you can make a complaint.

Step 2: Write to the credit reporting agency and raise your dispute. You need to give reasons as to why the listing is misleading or wrong.

Some examples:

1. You do not owe the debt listed. For example, someone used your stolen ID and obtained a loan. Write giving details of what happened and copy of your report to the police.
    
2. The loan was not overdue for 60 days or you were not notified of the default. For example, you missed one payment on your loan but you were never 60 days in default. In this case you would send copies of your account statements as evidence.
    
3. The amount of the debt listed is incorrect. Write giving evidence (for example, account statements or copies of letters from the lender) and reasons why the amount is wrong.
    
4. It has been over 5 years since the overdue listing was made. State that the listing was made over 5 years ago and should now be deleted.
    
5. No dealings with the lender listed.
    
6. The same overdue account has been listed twice. For example, your account was listed as overdue. You went overseas and had forgotten about the debt. A debt collector is now pursuing the debt and the default has been listed again.
    
7. You were listed as a "clearout" and you were easily contactable. For example, you separated from your partner in a joint loan and forgot to notify the lender of your new address. You were always listed in the phone book. In this case you would argue that it was unreasonable to list you as a "clearout"
    

Insist on a reply in writing to your dispute.
 

To obtain a copy of your Credit File, you must provide us with the following:

• Your full name
• Your date of birth
• Your current drivers licence number (and previous drivers license number if it has changed in the past 2 years).
• Your current address
• Your previous addresses if you have moved during the past 5 years
• Your current and a previous employer
• The name of the organisation with which you last applied for credit
• Your signature

Please note that you may only request a copy of your own credit history.

Debt Agreement - Options to Bankruptcy

A Debt Agreement is an agreement where the people and organisations you owe money to (your creditors) and you agree on a compromise regarding how much you owe them. For example, your creditors might agree to accept 40% if it is apparent that you are unable to pay any more than that and have little property of value. Once a Debt Agreement is made between you and your creditors it is binding on all of you.