Your Credit Report
We hear a lot about Credit Report in Australia, and the truth is, it is now quite impactful to your Lending Application. It has become more important to understand how credit reporting works in Australia when you are seeking finance as the number on that report will likely determine which lenders will consider taking you on as a customer.
Some Helpful Hints that we have put together for you, will guide you through the basics of understanding your Credit Report.
First of all, we do not partner with any particular reporting agencies. They are all different and the score can change across different companies.
For the purpose of this blog, we will discuss Equifax only, because this is the report that most of our lenders rely upon for your application.
Gaining Access to your Credit Report
Getting access to your credit report is as simple as going to the Equifax Website and filling your information out. You will usually be sent a copy of the report within 5 Business days.
What’s on the Report?
There are a lot of numbers on here, which probably won’t make much sense. The most important part of the the report is the SCORE.
The score data within Equifax ranges between -200 (Bankrupt) all the way up to 1200
Ideally, we would like to see scores sitting in the “Green” section of the report which is over 600
Enquiries
A list of enquiries over the last 5 years will be present on this report. This is for all financial enquiries with providers who subscribe. Every time you make an enquiry with a provider, this will impact your score. So it is important to make sure you are not ticking YES to Credit Enquiries on websites unless you actually plan to borrow funds. Large amounts of enquiries are impactful to your overall score and can easily drop you into a higher risk customer category, even if you are not taking out the lending or loans you are enquiring about.
Buy now Pay Later
Buy Now Pay Later enquiries are now recorded on Credit Scores. Historically they may not have shown up as an enquiry. Be aware of this when thinking about taking our BNPL Facilities, that is does impact your overall score.
Monthly Reporting
Any existing providers you use, are now generally providing a monthly report to your Credit Score Provider. So you will see a repayment history on your accounts for a rolling period of 2 years. Any late payments on these facilities will be available for other lenders to see, and may impact your ability to access new funding if there has been a history of late repayments.
Regular Address and Employment Changes
Moving around a lot and changing employment regularly can seem inconsistent to lenders, so this does play a small part in your overall score.
Protecting my Credit Score
Protecting your credit score is about a number of things. 1. Keeping an eye on your score 2. Protecting your personal data online to ensure that you do not fall victim to identify fraud 3. Not making too many unneeded enquiries 4. Paying your commitments on time.
We at The Broker Society can assist you with understanding your credit report. Feel free to reach out for a confidential meeting to discuss your report and any concerns you may have.