What’s inside your Credit Report?

If you’ve never reviewed your credit report or you don’t know what a credit report is, now could be the time to learn.

We all draw on credit at one time or another, whether it’s to fund the purchase of a new car, buy your home or pay for an overseas holiday. But what you might not know is that every time you apply for credit you are giving authority for that particular financial provider to delve into your credit history. 

What’s inside your credit report is important, as it is a major decider in whether a financial provider will lend to you.

What information is stored in my credit report?

Your credit report contains a record of your repayment credit history over the last 24 months, as well as any applications for credit you’ve made in the last five years.

It will also include:

• Your personal information: such as your name, gender, date of birth and employer.
• Consumer credit liability information: such as every credit account you have had open in the last two years. Your credit limit, the credit provider and the dates these accounts were opened and closed.
• Repayment history information: detailing your payment history for credit cards and other loans. It’s important that this section shows that you’re up-to-date with your payments, as a lender uses this information to determine whether or not you might be a risky borrower.
• Default information: if you have any overdue debts that remain unpaid. Keep in mind, defaults stay on your credit report for five years.

Who can access my credit report?

Financial providers, such as banks and credit companies all have access to your credit report. Other businesses, such as companies that offer lenders mortgage insurance can also access your report.

However, utilities companies like phone, gas and electricity providers are unable to access this information. They are also unable to add to your credit report, which means your utility and phone payments will not be shown on your credit report.

Can I access my credit report?

Yes, you are entitled to receive a free copy of your credit report every year from each credit reporting body in Australia, including Equifax, illion and Experian. It is also free to update any errors in your credit report.

How can I improve my credit report?

If after reviewing your credit report you find it’s looking a little worse for wear, there are some simple strategies you can take to nurse it back to good health.

Start by:

• Ensuring you’re always paying your credit card and loan repayments in full and on time. If you can’t pay the full amount, try to pay at least the minimum.
• Avoiding over-borrowing and only drawing on credit up to an amount you can comfortably afford to repay.
• Being aware of companies offering quick credit repair fixes.