Think your credit report is fine because you’ve never had a default? Think again.
Many Australians associate a bad credit report with one thing: a default.
But defaults are only one part of the picture.
At Credit Fix Solutions, we regularly speak with Australians who have never had a default yet discover other information on their credit report that may be affecting their credit profile or creating problems when they apply for finance.
And unfortunately, many people only discover the issue when they’re trying to buy a home, refinance their mortgage, obtain a car loan or apply for other credit.
That’s not the ideal time for a nasty surprise.
What information can appear on your credit report?
Australia operates under a comprehensive credit reporting system. This means your credit report can contain significantly more information than simply whether you have a default.
Depending on your circumstances, your credit report may include information about your credit accounts, credit limits, credit enquiries, repayment history and defaults.
That means someone can have no defaults whatsoever and still have information on their credit report that deserves attention.
Some of the things worth checking include:
- Late or missed repayments
- Multiple credit enquiries
- Several applications for finance within a short period
- Repayment history information
- Credit accounts you may have forgotten about
- Incorrect or outdated information
- Defaults or other negative information you weren’t aware of
This is why understanding your entire credit report matters — not just looking for defaults.
Can one late payment affect your credit report?
One of the biggest changes in Australian credit reporting has been the inclusion of more detailed repayment history information.
Your credit report can show whether required repayments on certain credit accounts were made on time.
For someone who has always thought, “I don’t have any defaults, so my credit report must be perfect,” this can come as a shock.
It’s also why we encourage consumers to keep an eye on their repayments, check direct debits are operating correctly and make sure the required amount is being paid by the due date.
Small administrative mistakes can potentially become much bigger headaches when you’re preparing to apply for finance.
Too many credit applications can also matter
Every time you apply for certain types of credit, an enquiry may be recorded on your credit report.
Consumers sometimes make the mistake of submitting applications to several lenders trying to find the best deal without realising those applications can leave a trail of enquiries.
Importantly, checking your own credit report is not the same as applying for credit.
Knowing what is already on your report before making new applications can help you make more informed decisions.
Don’t wait until you’re applying for a home loan
This is probably the biggest message we want Australians to take away:
Check your credit report before you urgently need credit.
If you’re considering buying a home, refinancing, purchasing a car or making another significant financial move, understanding your credit position beforehand gives you time to investigate anything unexpected.
If information appears to be incorrect, there may also be an opportunity to have it investigated and, where appropriate, corrected.
Not every negative item can or should be removed. Legitimately reported information generally doesn’t disappear simply because you don’t like it.
But if information is inaccurate or has not been reported correctly, it’s worth understanding your rights and options.
Need help understanding your credit report?
Credit reports can be confusing. That’s exactly why Credit Fix Solutions offers a free credit report assessment.
Our Australian team can review your credit reports, explain what’s appearing on them and help you understand whether there are legitimate grounds to investigate or challenge particular information.
We’ve been helping Australians navigate credit reporting and credit repair issues since 2014, and our focus has always been on giving consumers clear information about what’s on their credit file and what can realistically be done about it.
There is no obligation from our initial assessment.
Know what’s on your credit report
Your credit history can matter long before you ever receive a default.
So don’t wait until a lender, mortgage broker or finance application brings an issue to your attention.
Know what’s on your file. Understand what it means. And if something doesn’t look right, ask questions.
Need help?
Contact Credit Fix Solutions for a free credit report assessment at [email protected].
Credit knowledge. Clear solutions. Second chances.