What is a Credit Rating?

The credit rating is a cumulative score based on the information available on your credit report. One in ten Australians have a black mark on their credit report that hinders being approved. There is a misconception that credit rating can be improved just by paying back to the creditor, if it has been reported as a default. However, credit rating in Australia is based only on negative impacts or events such as missed payments and a negative listing (black mark) stays there on credit file for 5 to 7 years, even if the missed payments are paid or defaults are settled. This may allow credit providers to deny you a loan even if there is just one black mark, regardless if it is paid or not.
BOOK A FREE CONSULTATION
Or call us on 03-9819-4656
Card image cap
First Home Buyers
Card image cap
Bad Credit Home Loan
Card image cap
No Doc / Low Doc Home Loan
Card image cap
Compare Home Loans
Why my credit rating is important?
Your credit file is like a repository of your past financial activities and contains details regarding your addresses, employment history, credit applications and negative listings. Whenever you apply for a loan, even a mobile phone on a contract or for an interest free store offer, it is more likely that your details have been given to credit reporting agency. The credit report is viewed whenever you apply for any loan, credit cards, mobile phone contract or even a car leasing. These are called enquiries and may be listed on your report.
What is there on my Credit Report?
Your credit file contain information about your home address, current and past employment history, bankruptcies, credit applications, overdue accounts, defaults, judgments, clear-outs, crossed or linked files, past names, etc. and is sometimes used to determine your credit worthiness. Your credit report will have a credit score based on your financial history and credit health. Majority of lenders in Australia have a minimum credit score requirement to be eligible or to be approved for a loan.
Who are the Australian Credit Reporting Agencies?
There are three main Credit Reporting Agencies in Australia. The largest and most used by lending institutions and creditors is Veda Advantage.
Veda Advantage: www.vedaadvantage.com.au www.mycreditfile.com.au
Dunn & Bradstreet: www.dnb.com.au
Veda Advantage: www.tascol.com.au
How long the information is held on a credit report?
  • External Administrations – 10 Years
  • Previous Directorships – 10 Years
  • Bankruptcy, Part 9 Debt Agreements – 7 Years
  • Serious Credit Infringement – 7 Years
  • Credit Enquiry, payment Default – 5 Years
  • Court Judgment – 5 Years
  • Summons, Court Writ – 4 Years
CALL US FOR A FREE CONSULTATION NOW!
More than $75 million AUD disbursed in loans!
Home loans made easy
Card image cap
First Home Owner Grant

The scheme assists eligible first home owners to buy a new home.

Read More
Card image cap
Compare Home Loans

Compare rates and specifics from Australia’s top lenders.

Read More
Card image cap
Home Loan Process

We promise a smooth transition from being a loan seeker to home owner.

Read More
Card image cap
Property Finding Service

We can help you source a suitable property and negotiate with sellers.

Read More