Credit report tips
When looking to buy a home or applying for finance, lenders will review your credit report, so having a good credit history is important. If your credit report shows late payments or defaults, they may decline your finance application.
Here's some ways you can protect your credit report:
- Make sure your contact information is up to date. This will ensure you don't miss any bills from your service providers, to reduce your risk of a default.
- Always endevour to pay bills on time. If your bill is $150 or more and you fail to make a payment within 60 days after the due date, this could be recorded as a default on your credit report. Setting up a direct debit can ensure bills are paid on time.
- Avoid too many finance enquiries in a short period. These can show up on your report, and lenders may look at them favorably. Using a broker, may help to reduce the number of enquiries on your credit file.
Steps to remove a default
Credit defaults will appear on your file for 5 years. If you have a default, and believe it could be a mistake, there may be steps you can take to correct it.
Consider the following steps:
- First and foremost, if the bill is still outstanding, you should contact the service provider or collection agency and pay for it.
- Once it's paid, you can contact the service provider and request to have the paid default removed, preferably a supervisor. If you are dissatisfied with the result, you can contact the Aus. Financial Complaints Authority.
- If you require further assistance, Equifax provide a free Personal Corrections service and can investigate the accuracy of information on your credit report.
- Alternatively, you could seek assistance from an independent service, such as Credit Clean Australia. Keep in mind there may be fees for this service.
Having a default removed is not guaranteed, however, the steps above have helped many to improve their credit file.
Obtain your credit report
You can obtain your credit report for free through Equifax. They are a leading provider of credit information and analysis in Australia.
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