Been Declined Credit? What Now?
Don’t panic – Follow these 3 steps
1. Find out why
- Level of income and other resources to meet the loan repayments
- Number of other loans and other financial commitments you have
- How secure your employment is
- Your credit history which can include information such as previous bankruptcy, defaults, serious credit infringements, high number of credit applications and poor repayment history.
What is a credit report?
- Personal details such as your name, address and date of birth
- Consumer credit information
- Credit enquiries (applications you have made for credit for personal use)
- Credit account information – Date account opened and closed, type of credit account, credit limit
- Repayment history information
- Overdue debts like payment defaults (paid and unpaid)
- Serious credit infringements
- Publicly available information such as personal insolvency information, court writs and judgements and directorship information can also be included as part of your consumer credit information on your credit report.
- When you ask for a copy of your credit report we will also provide you with any commercial credit information such as credit enquiries and overdue debts like payment defaults that we hold on you.
2. Get your credit report
You will need to have the following information handy:
- Your full name
- Your date of birth
- Your driver's licence number
- Two forms of identification including
- a copy of your driver's licence, Medicare number, passport, birth certificate or Proof of Age card, as well as
- a document issued by an official body which includes your name and address (i.e. rates notice, utility bill or bank statement)
- Your current residential address
- Your previous addresses
- Your current employer or a previous employer
- Name of the organisation to which you last applied for credit
- A daytime telephone number
- How you would like your report sent to you, via post, fax or email
3. Improve your credit report to get credit in the future
- Check your credit report to see if the information is accurate.
- Find out your Equifax Score (or credit rating). Your Equifax Score contributing factors can help you understand the items on your credit report that impact your score. You can obtain your Equifax Score by subscribing to one of our annual subscription plans.
Correcting your credit report
Be careful of ‘credit repair’ style organisations
Tips to help you improve your credit profile
- Pay your loans and bills on time – Consider setting up direct debits and schedule loan repayments for your pay day.
- Keep track of your credit commitments – Do your homework before applying for credit and keep track of your credit commitments. Making a number of applications within a short space of time will be recorded on your file and is not always looked upon positively by lenders, as it may be an indicator that you’re in credit stress.
- If you move house, notify lenders – advise lenders, phone and utility providers of your new address so they can re-direct bills to your new address. If you don’t pay these bills, a credit infringement or overdue debt could be listed on your credit report.
- If you are having trouble meeting repayments – talk to your credit provider who may assist.
- Keep track of your credit record – proactively manage your personal credit report by regularly checking your credit report and Equifax Score. You can even monitor changes through credit alerts.
Need more information? ASIC MoneySmart has more information about loan rejection.
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Check out our informative infographic to understand what goes into your credit profile and what it can be used for.
A rebound in Australia’s overall economic performance has been reflected in the fall in insolvencies experienced in the December 2016 quarter.
Your credit report holds information relating to your credit history and it can help credit providers, such as banks, financial lenders, telco and utility companies, get a clear picture of your credit worthiness when you make an application for a loan or credit contract.
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