We all have a credit file linked to our names. Every time you apply for a loan or for credit of any form, your lender will first access your credit file and check your credit history. Your loan/credit will be approved or disapproved based on the details on this file.

So What Is In your Credit File

Good question…I think its important for all us to be aware of this - considering the huge importance placed on your credit file.

* Your personal details (name, address, license number, date of birth)


* Your overdue or default accounts - Usually if you haven’t paid a bill even after three reminders being sent then that detail goes into your credit file.


* Bankruptcy details

* Records from your current credit accounts * Any legal issues

There is no credit rating as such for an individual…Its just raw data and information - Different lenders use this information differently…What information one lender might give importance to might be different to what another lender gives importance to.

Can I Access My Credit File?

Yes, you can…Veda is the largest custodian of credit-related information in New Zealand and Australia. They can send your credit file free of charge - but there is a waiting period of 10 days…If you are in a hurry, they can send it to you sooner but will cost you $27. For $40 per annum, they will send you an update whenever your credit file has been touched (updated or accessed). Visit their website for more information - http://www.mycreditfile.com.au

How Do I Fix My Credit File

Once you have had a look at your file, if all is okay then you have already been doing the right things…Good luck and keep it up. If there are some red spots on the file then these are some of the ways you can fix it:
* Pay the default loans…The credit file will be updated of your payment.


* Pay bills on time - Set direct debits as much as possible…


* If you are having a really hard time paying your bills then maybe enter into some sort of agreement with your lender…Not easy but worth a try.

Once you clear you loans, your loan default detail will not be removed from your file…It will still be there but it will be updated saying that you have now paid.

Related Posts:

• Credit Card Terminology Explained
  These days Credit Cards have become a common accessory in many wallets. We can't imagine our lives without a credit card. However most of...

Topics: Financial Topics |

Comments

Name (required)

Mail (will not be published) (required)

Website

« Investing In Wine | Home | Board Room Radio - A Cool Service For All Mum And Dad Investors »