Do You Have A Pristine Credit History?
Your credit history follows you wherever you go. You can’t even get a cell phone if you have a poor credit rating. Veda Advantage is the main credit report agency in Australia, and provides the feedback that affects whether or not you get the loan or credit you want. Veda Advantage stores all of the information on your credit history, including each enquiry from various lenders. This applies for individuals and companies alike.
What Information Is Stored?
The credit agency in charge of your information keeps track of the date, amount, and type of each credit application. All legal action is documented, as well, including defaults and bankruptcy. The only thing not documented is whether or not you were awarded the credit and are currently paying on it. The bank you are negotiating with for your new loan will probably depend on your honesty as to which loans and credit cards you received and are currently paying. They seldom ask for substantiation that you have paid off a loan. This loan payment, of course, will be figured in to your cost of living. Keep in mind, however, that if you have applied for numerous credit cards, it may look like you are desperate for credit, and this will reflect poorly on your credit history.
What Causes Poor Credit History?
You are probably aware of several things that can affect your credit rating. The number of applications you have filled out, whether or not you have defaulted on a card or loan, whether or not you have been sued or declared bankruptcy; all are reported on your credit history check. But, there are some things which can affect your credit rating that you may not be aware of.
Perhaps you have been surprised to find that you owe for a utility you haven’t used in years. This happens to some people when they move and leave a new tenant to take over utility bills. If you don’t contact the utility yourself, and take your name off the bill, you are running the risk of trusting your credit rating to a total stranger. Whoever takes over the use of that utility may or may not pay it, but it is still in your name.
If the new tenant doesn’t pay the utility bill, the company will look for you. If they find you, you’ll have to pay the bill. If they don’t find you, they will report your bill as delinquent. If you are caught in this scenario, the best you can hope for is the benefit of a doubt from your prospective lender. Of course, you will have to pay up on the bill, which is not yours in the first place, but is in your name. The bank, even if you pay the bill, will still be skeptical of loaning you money because you have proven that you are not careful with your accounts.
Can You Fix A Bad Credit Report?
Traditionally, a bad credit report takes 5 years to clear itself. There are some instances, however, in which lenders will take a second look. If the amount you were in default is under $500 and has been paid, they might consider giving you a loan. It also helps if the default was at least 2 years ago.
There are several companies that can help you repair your credit score. Some of them, for a modest fee, will alert you to changes in your credit report.
Order a copy of your credit file
Receive email alerts whenever specific changes occur on your credit file for 12 months. You also receive a copy of your credit file despatched within one working day.
Receive your credit file with information on:
- Details of consumer credit enquiries
- Details of overdue consumer credit accounts
- Commercial credit enquiries
- Details of overdue commercial credit accounts
- Bankruptcy & Court Judgements
- Writs & Summons
- Information on your current relationship with a credit provider
Related posts:
- How Do Lenders Assess Those with a Bad Credit History?
- The Importance of a Strong Credit History for Your First Home Loan
- Credit Ratings & Reports | Repair your Credit Score to get your Home Loan Approved
- Bad Credit Refinance
- Great Tips On Getting Your Home Loan Approved Even With Bad Credit Rating
- Credit History Check – Why do a check before you apply for a home loan
- How Your Credit Rating effects how much you can borrow
- Getting a Home Loan when you have had Credit Problems
- Poor Credit Refinance
- Home Loan Applications: How to Avoid Rejection
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