news.com.au - 3 out of 4 Australians aren’t sure what a credit file is, consumer credit bureau Veda Advantage says, and mortgage brokers lament that clients sometimes have no idea there’s information on file that could deny them a home loan.
Veda Advantage says a recent survey conducted on its behalf by Galaxy Research found that just 15 per cent of respondents could correctly identify what a credit file is; a further 9 per cent had a rough idea.news.com.au
Yet the survey also found that 14 per cent had an overdue bill in the past three months – something that could leave a black mark on their credit file if the debt remained unpaid for more than 60 days. news.com.au
Separately, Mortgage Choice said its franchise owners were concerned that many clients had no idea what was on their credit file, even though information such as bill defaults or applications for other debt could be enough reason for them to be denied a home loan. news com au
”Younger borrowers are especially likely to be oblivious to the importance of keeping their credit file clean,” says the Mortgage Choice spokeswoman, Kristy Sheppard. news.com.au
The head of external relations at Veda Advantage (which holds credit files on more than 14.5 million Australians), Chris Gration, says the state of your file can affect not just your ability to get a home loan but even something as basic as having the internet connected.news.com.au
People should make it a habit to check their credit file annually – something you can do at no cost, Gration says. They should also review their file at least 30 days before making any credit application. Just 4 per cent of those in the Galaxy survey had requested a copy of their file in the past 12 months.news.com.au
”By obtaining a copy of your personal credit file you’ll know what financial institutions and other credit providers are looking at,” Gration says. ”That way you can be ready to answer any questions that might arise from your credit file.”news.com.au
news.com.au – He says checking your credit file will also alert you to any mistakes or to fraudulent activity in your name