Like many people out there, you might be wondering: “why is it so important for almost every lender?” Also, you might be asking: “how do I get my credit file and how can I use it?” Well, it is time to get informed and find out how to obtain this file. This way, next time you apply for a new loan, you will have all the necessary documents and information with you.
My Credit File – What Is It Good For?
When we apply for a loan, we are always asked to bring all the necessary documents with us. One of those documents is the credit file. This will help the lender see if we are eligible for the loan or banking service we applied for.
This will also help us see if we can get the loan or not. Usually, we don’t check this file, and we get our request rejected, and we are frustrated. It is a waste of money, waste of time and we just want that loan. If we knew we would have been rejected, we wouldn’t have come in the first place.
But how can we know beforehand if we are eligible or not? Simple, we check the credit file.
What Does the My Credit File Include?
Your credit file will include your past loans and the ones that are still active. It will also show if you have any debts, and feature your credit score and any type of information that will help the lender decide whether or not you are eligible for the loan.
A credit file will also list your personal details, repayment history (like whether or not you paid your debts on time or missed some) and other information like bankruptcies, court judgments, personal insolvency agreements and debt agreements.
The credit file will also list any credit infringements. Those can last up to five or seven years, depending on the severity of the infringement. Bankruptcies will be on your credit file for seven years, and insolvency agreements will be listed on your record for five years after it occurred.
The five-year rule also applies to debt agreements and court judgments, so it is in your best interest to avoid these things if you know you will be using financial services in the future. Besides listing this type of information, credit files can assist you in enhancing your credit score.
Reason to Check My Credit File
Some Aussies have a lot of problems when it comes to getting loans, managing their money and keeping their credit score at a positive level. When the credit score drops under a certain degree, some lenders will apply some restrictions to your loans or even flat out deny your request for that loan or service.
So what can you do in that case? Well, you can ask for a copy of your credit file and start working on improving your financial situation by taking control over your debts and improving your credit score.
For example, you may have an incorrect listing. Let’s say that it is a debt that has nothing to do with you. You haven’t signed for that loan; it is not yours, it is there because someone made a mistake. However, that listing will affect your credit score among other things.
Listings disappear from your credit file after five or seven years, and until then, they cannot be removed. However, if you can prove that the listing is incorrect and you have no connection with it, then it can be removed. That’s why it is important to check your credit file from time to time.
Another thing you can do is to check whether your personal details are correct. When it comes to personal data, it is important to check for errors because you might end up being a victim of identity theft or get into all sorts of serious problems.
Also, you can take your credit file to a credit repair centre and hope that you will get some of your credit score back. Some shady credit repair centres can charge you for getting your credit file when in fact, you can get it for free.
So, it is better to bring all the documents with you than to get tricked into paying for something that should be free of charge.
How Can I Get My Credit File?
You may not get your original credit file but a copy of it from a credit reporting body. You will need to provide your address, full name, date of birth, previous address and driver’s licence number so that the service can identify you. You can check this national credit rating bureaus like Equifax (formerly Veda), Dun & Bradstreet, and Experian.