My credit file

What is a credit file?

my credit checkA credit file is a record of your credit history and is maintained by agencies such as Veda Advantage.

The information shown on your credit file includes any loan applications you have applied for that were not approved, defaults on loans, bankruptcy, and other adverse events. This information can be accessed by other financial institutions such as the banks which would help them determine your character as a potential borrower.

If the banks can see a lot of blemishes on your credit file such as unpaid debts and missed payments they will assume that you will have the same approach towards a mortgage, so they will be extremely cautious when assessing your loan application.

What information is on a credit file?

The lenders are very cautious in lending money to borrowers who have a bad credit history that is either ongoing or where the adverse listings have not been cleared, therefore it is important that you know what your credit history is like.

The following points indicate what information is recorded onto your credit file that can be seen by the banks and lenders:

  • Your name, date of birth, address, previous address, drivers licence number, employer, previous employer.
  • Company directorships
  • All loans you have applied for in the last 5 years come up as “Enquiries”.
  • Any loans where you have not made the repayments come up as “Defaults”. Generally a default is listed after 3 months of missed repayments.
  • Court Judgments
  • Court Writs
  • Bankruptcy history

Did you know that approximately 14% of Australians have a default or other black mark on their credit file? To save yourself from being turned down by the banks for a loan due to your bad credit history, simply enquire online and one of our specialist mortgage brokers will help you get finance approval!

How long does information stay on my credit file?

Information stays on your credit file and can only be cleared once it has reached the following set number of years:

  • Enquiries- 5 years
  • Defaults- 5 years
  • Court judgments- 5 years
  • Court writs and summons- 4 years
  • Bankruptcy- 7 years

Keep in mind that paying a default DOES NOT REMOVE IT from your credit file, it just updates your file to show that the default was paid.

How can I clean my credit file?

It is a very difficult process to clean up a credit file however there are ways to prevent your file from having any additional blemishes.

  • Make your repayments on time- this will stop any future defaults from being marked on your file.
  • Pay off your existing defaults- this is usually done by refinancing your home to roll your debts into one easy payment.

Please enquire online for more information.

How can I get a copy of my credit file?

There are several ways for you to get a copy of your credit file and it will purely depend on how urgent you need the copy to determine which method you should use.

You can choose to do one of the following:

  • Write to Veda Advantage- you will get a free copy.
  • Apply on their website- you will get it right away, although you have to pay a fee.
  • Ask your bank manager or mortgage broker.

Can I have several credit files?

Yes, it is possible for an individual to have more than one credit file. The most common scenario this would apply to is if you have changed your name, usually due to marriage.
These are known as cross references which means the lenders will see all of the credit files that you have as they are linked on Veda Advantage’s system.

Who is Veda Advantage and what do they do?

Veda Advantage is an agency that provides vital information regarding one’s credit history. It provides businesses such as the banks and mortgage broking companies with a list of all the credit enquiries you have made, any defaults and if you have been bankrupt.

This will allow the banks and brokers to take note of all the blemishes on your credit file to help them determine whether you are eligible for a home loan, and if so, which lender would approve your situation.

Will my credit file affect my home loan application?

Yes! The banks and mortgage insurers are very wary of blemishes or even too many credit enquiries on a credit file.