What Is A Credit Report For Finance in Australia?

A credit report used for finance in Australia is a detailed record of your credit history, produced by a credit reporting body using information supplied by credit providers and other sources. It includes personal details such as your name, date of birth, address, and employer, as well as information about your current and past credit products, repayment history, and any defaults, court judgments, or bankruptcies.

What are credit reports used for in finance?

Credit reports are used by lenders to assess your creditworthiness when you apply for loans, credit cards, or other financial products. The report may also include your credit score or rating, which gives lenders a quick indication of your likelihood to repay debts.Â

Under Australia’s comprehensive credit reporting system, additional information is shared, such as the types of credit you have, credit limits, account opening and closing dates, and your repayment history for the past two years.

How do you get your credit report?

You are entitled to a free copy of your credit report from each of the main credit reporting bodies (such as Equifax, Experian, and Illion) once every three months, or if you have been refused credit in the past 90 days. This helps you check for accuracy and take steps to improve your credit profile.

To get your credit report in Australia, you can request it directly from one of the major credit reporting bodies: Equifax, Experian, or illion. Here’s how you can get your report:

Online

• Equifax: Visit the Equifax website and sign up for a free credit report online. You will need to provide identification and verify your identity before accessing your report.
• Experian: Go to the Experian Australia website and follow the steps to order your free credit report. You will also need to provide identification and proof of address.
• illion: Register on the illion Credit Check website for free access to your credit score and report. The process is quick and does not affect your credit score.

By phone or mail

• Equifax: Call 13 8332 or mail your request to GPO Box 964, North Sydney, NSW 2059.
• Experian: Call 1300 783 684 or email your request with the required identification documents.
• illion: Call 1300 734 806.

Once your identity is verified, you will usually receive your credit report online within a day or two, or within 10 days by email or mail, depending on the agency.

You can also use third-party platforms such as GetCreditScore (powered by Equifax) or Credit Savvy (powered by Experian) to check your credit score and get an overview of your credit report for free. These services require you to sign up and may use soft enquiries that do not impact your credit score.

Another way you can get your credit report is by applying for finance. Your mortgage or finance broker may run a copy of your credit report to assess your credit worthiness and ability to get finance.

What to look for when you get your credit report

If you want to get finance, such as a home loan or other credit, there are several key aspects of your credit report you should carefully review:

• Accuracy of Personal Information:
  Ensure your name, date of birth, current and previous addresses, and employment history are correct. Errors here can cause delays or issues with your application.
• Credit Accounts and Limits:
  Check that all listed credit accounts (credit cards, personal loans, mortgages, etc.) and their credit limits are accurate. Look for any accounts you don’t recognise, as these could indicate fraud or identity theft.
• Repayment History:
  Review your repayment history for each credit account. Lenders look for timely repayments, so late or missed payments (especially recent ones) can negatively impact your chances of approval.
• Defaults and Overdue Accounts:
  Identify any defaults, overdue accounts, or serious credit infringements. These can significantly harm your credit score and reduce your likelihood of securing finance.
• Credit Applications and Enquiries:
  Confirm that all credit enquiries listed are ones you actually made. Multiple recent applications for credit can suggest financial stress and may concern lenders.
• Bankruptcies, Court Judgments, or Insolvencies:
  These are serious negative marks and can make it much harder to get finance. If present, check for accuracy and note any relevant timeframes, as some may eventually drop off your report.
• Credit Score:
  While not always included, your credit score is a summary of your credit risk. Higher scores indicate better creditworthiness and improve your chances of approval and favourable terms.

Regularly checking your credit report allows you to correct errors, address negative entries, and ensure you present the best possible profile to lenders. This includes when you apply for finance through mortgage brokers in Australia like the team here at Holy Finance. Ensuring you have a copy of your credit report can help speed up the finance process.