Are you thinking of applying for a car loan, or new credit card? Perhaps you are going to buy your first home. Before you apply for any credit you need to check your credit file!

What is a Credit File?

A credit file is a document that contains information on you, and your financial affairs, past and present. The main details that will contained on your credit file will be:

  • Your full name
  • Your date of birth
  • Your current address
  • Your previous address
  • Employer details past and present
  • Details of any past or existing credit

When you apply for any kind of credit, regardless of whether it is a credit card application or a home loan application, your prospective lender will access your credit file. They do this to gather a snap shot of your financial background, and to see how “safe” it will be to lend you money.

Really they are checking to see that you have always paid any debts on time, that you are earning enough money to pay for any new credit, and that you are not considered to be a financial risk by any other lenders.

Who Holds These Details?

The majority of credit files, and credit histories in Australia are held and organised by a company called Veda Advantage. They formally named Baycorp before reverting to their current trading name.

It is their responsibility to maintain, and keep everybody’s credit details correct and in order. Of course with so many financial applications and transactions taking place across the country every day, it is only to be expected that from time to time there may be errors.

That is why it is of the utmost importance that you regularly check your credit file for any kind of discrepancies or errors that may have occurred. It may be that someone has fraudulently used your details to obtain credit, or simply that a previous lender has made an admin error which shows that you haven’t paid a bill.

When you apply for credit, these errors may well have a negative effect on your application, and culminate in you failing to gain the credit you sought. By checking your credit file you can look for any of these errors, and report them.

The first company to try will be the lender who you think may have made the error. Hopefully they will then rectify the problem for you themselves. If they do not help you then you can report the issue to Veda, and they will investigate and correct any of these issues on your behalf, so your record can remain accurate.