Applying next week? Check your credit report first.
A credit report records identity details, credit products and parts of a person's application and repayment history. Lenders can use it when assessing credit, but a credit score is not the only part of a lending decision. Checking the report before applying can reveal information that needs explanation or correction.
Moneysmart says Australians have a right to a free copy of their credit report every three months and recommends checking at least annually. It names Experian and Equifax as the two main credit reporting bodies. Their records can differ, so request both rather than assuming one report is complete.
Request both reports before the application
Use the official request paths provided by Experian and Equifax. Avoid a provider that asks for payment or credit-card details merely to provide the report or score. Keep the report date so later changes can be identified.
A report may contain identity information, accounts, repayment history, defaults and enquiries made by credit providers. The presence of an item does not by itself explain the complete lending outcome, but it should match the borrower's actual history.
Check five groups of information
1. Name, date of birth and addresses. 2. Accounts and credit limits you recognise. 3. Credit enquiries connected with real applications. 4. Repayment information. 5. Defaults or other adverse information and whether the details are accurate.
If information is wrong or out of date, ask the credit reporting body or the credit provider that supplied it to correct the record. This correction service is free. Accurate negative information cannot simply be removed, and submitting more applications is not a safe way to test the issue.
Then prepare the rest of the application file
After checking the reports, organise current income, liabilities, living expenses and requested documents. BV Finance can help prepare loan-comparison and application information, but cannot alter accurate credit-report records or guarantee approval.
Sources and practical tools
General information only. This is not financial advice. Loan options and eligibility depend on your personal income, liabilities, assets and lender assessment criteria.
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