Credit can seem like such an ugly word, but it doesn’t have to be.  We want to give you some great reasons why you should check your credit report before you go out and apply for that credit card, mortgage, or any other finance so you aren’t in for any nasty surprises during the process.

An apple a day……

Do you visit your doctor regularly just as a preventative measure, just to make sure nothing is wrong or that there aren’t some underlying lurgies hanging around?  It’s worth doing a health check on your credit!  At the end of the day, you can’t fix a problem if you don’t know it exists.

There are three credit-reporting bodies within Australia that you can apply to obtain a credit report.  Most people don’t realise the reports are free, although you must only apply for it once a year. Should there be any discrepancies on the report that are stopping you from receiving that mortgage the credit provider needs to make the amendments.  The free reports can take up to 10 days, so if you are in a hurry, fees do apply.

If you are ready to make that credit health check, the national bodies are:

• Veda  MyCreditFile.com.au Phone: 1300 762 207
• D&B: CheckYourCredit.com.au Phone: 1300 734 806
• Experian: Experian Credit Services Phone: 1300 783 684

It’s Not Perfect

Banks and finance-related companies are not the only ones that can put a red cross against your name.

Phone companies and utility providers have this capacity too and, unfortunately, they can make mistakes.  Sometimes an overdue bill you eventually did pay off years ago can remain on your report.

These mistakes can be fixed and an application needs to be filed so the amendment can be made.  If, however, the company refuses to do so, they do need to provide you with a written note with their reasons.

Privacy Law Change

On 12th March 2014, there were changes made to the Privacy Act 1988.  Previously, the credit report would only show if you didn’t pay or defaulted on your debts.  The new system has been created to show whether you have or have not paid your bills on time from any licensed credit provider i.e. phones bills, mortgages, credit cards, electricity, etc.

Life just gets in the way at times and unless you pay your bills on a direct debit scheme, it is easy to forget a bill.  Unfortunately, with these new laws, you need to change your habits and stay on top of it.