What is Your Credit Rating?

If you are applying for a loan, or any type of credit, you can obtain a credit report which contains information about your credit history.

All lenders obtain a credit report on you when you apply for a loan and often your credit rating will play an important role in the application process.

What information is collected in a credit report?

  • Personal information, such as name, date of birth, address, driver licence, etc.
  • Consumer credit information, such as credit inquiry, late payments, defaults and credit infringements.
  • Public information, such as court judgements and bankruptcies. And as of March 2014, repayment history and additional credit information.

Your Credit Score summarises the information on your Credit Report into one number and this number is what lenders can use when assessing your credit application.

What can you do to prevent a poor Credit Report?

Now, more than ever, it is really important to protect your credit rating as this will have a major bearing on your ability to buy a car or a home.

  • Make sure overdue debts aren’t recorded on your Credit Report.
  • Do your homework when applying for credit, and only apply for credit when you need it.
  • Regularly check your Credit Report.
  • Be aware of identity theft as this is a major problem with Credit Reports.

You should know what your credit rating is before applying for finance and you are entitled to a free copy of your credit report from a number of Credit Reporting Agencies, including Veda, Dun and Bradstreet and Experian.

If you are unaware or have any concerns regarding what is contained on your credit report, the team at Allan Hall Finance can assist you. To speak to them directly, please call Steve – 0416 530 584, David – 0425 323 023 Or Mitch – 0412 038 205.