Credit Rating

[Canalien]

I'm a bit confused as to the mystery of the omnipresent 'credit rating'. Is there a way to see my credit rating (cheaply!)?

Whilst a poor uni student (and working part time) I had applied for a couple credit cards and got promptly knocked back and I've been too afraid to apply again since in case getting knocked back reduces your rating or something.

Does a HECS debt affect it? Where can i see it?

[Thyrd]

I'm not certain if you can see it. Apparently the easy way to get it up apparently is to take out a tiny loan at some place like radio rentals, e.g. $500 for a stereo, and then pay it back quickly. Apparently doing this brings your credit rating up and usually allows you to get a credit card.

[Sagacious]

I'm a bit confused as to the mystery of the omnipresent 'credit rating'. Is there a way to see my credit rating (cheaply!)?

Whilst a poor uni student (and working part time) I had applied for a couple credit cards and got promptly knocked back and I've been too afraid to apply again since in case getting knocked back reduces your rating or something.

Does a HECS debt affect it? Where can i see it?
There is a popular misconception that your credit history provides a rating.

Simply put your credit history is held by (or used to be held by) Credit Reference Association Australia(CRAA) or some such named entity and was simply a record of the number of inquiries made to CRAA concerning your creditworthiness which was worked out by reviewing the contents of your file which discloses simply the following info:

Inquiries made.
Defaults on loans
Remedies of defaults

I think that there is also the possibility of noting whether you are a pormpt or delinquent payer but am unsure.

Anyway CRAA is no more and the service offered by them is now provided by Baycorp Advantage.

Getting hold of your file is simple (or used to be) all you do is request it (I think over the phone but otherwise in writing) and as I recall they will fax it to you.

Not everyone you have ever borrowed money from or obtained credit from will be on there as the system (used to be at least) a members only system in other words you had to be a member to make notations on someones file and had to have their permission to access the data on their file.

Amending your credit history can be a bitch as nothing is ever deleted merely correcting notations made if an error is found (and you need to be able to prove to them the record is in error).

Hope this helps.

[Sagacious]

Or for $23.00 you can have it sent/faxed/emailed to you.

Linky (http://www.mycreditfile.com.au/my_credit_file_product_information/my_credit_file_product_information_default.aspx)

[Canalien]

Yeah it does, so my next question would be...
Does anyone know on what basis banks decide to approve or decline credit?

I also heard that credit history reports have a length of five years (seven for bankruptcies), and that anything outside these periods is erased. True?

[Sagacious]

Yeah it does, so my next question would be...
Does anyone know on what basis banks decide to approve or decline credit?

I also heard that credit history reports have a length of five years (seven for bankruptcies), and that anything outside these periods is erased. True?
They do it on a combination of your credit history and the asset liability, income expenditure information you provide to them.

With respect to your info I think it always remains on there but the stuff older than 5 years tends to be disregarded (usure about this)

As for the notation of a Bankruptcy that is a permanent record held by the Insolvency Trustee Service of Australia and on the NPII National Personal Insolvency Index both of which registers are publicly searchable for a fee.

If you are in the market for a loan I know a loan broker I can refer you to. PM Me if you want to know more.

[Canalien]

No, not looking for a loan at the moment. Just want to have a look and see if there's anything suspect on my report. Cheers.

[Thyrd]

I would like to know if having your account overdrawn effects your credit rating negatively. On my first pay day of my job(which I'm going to quit on tuesday), I was next to broke and my bank fees kicked in, overdrawing my account by $4. I got payed at 4:30PM but I don't know if that short period with my account overdrawn would have affected my credit rating.

[Sagacious]

I would like to know if having your account overdrawn effects your credit rating negatively. On my first pay day of my job(which I'm going to quit on tuesday), I was next to broke and my bank fees kicked in, overdrawing my account by $4. I got payed at 4:30PM but I don't know if that short period with my account overdrawn would have affected my credit rating.
would imagine not particularly if in so doing you did not cause a cheque to go rubber or a direct debit to be dishonoured.

[s3raph]

Yeah, I've been a bit edgy about these things seeing as for the last 4 weeks or so my account went under because of some new charge they applied for not honouring transfers between your own accounts. I was in London, so I wasn't earning, but the weekly transfer kept on failing, and the bank kept on applying the fee. Bastards.

[ShinymetalASS]

Baycorp Advantage can bite my shinymetalASS.

Actually, every bank has it's own policy but as a general rule any default that has been reported by a creditor (ive heard telstra will report $5) will go on your record for 5 years. In that time some banks will outright refuse, partcularly NAB, and some will grant you a card if you earn enough money, though usually the amount needs to be showing up as paid (meaning you paid the bill once it got to Baycorp)

So it may be that some bill you had once upon a time was never paid and ended up with the debt collectors, who never recieved any payment and then passed it on to Baycorp.

My understanding of overdrawing accounts is that it does not affect your rating unless you never actually put enough money into the account again. Most people's accounts end up overdrawing one way or another (even if you are careful).

Essentially Baycorp will have a record of any defaults in payments of bills/loans/sum of money owed to someone.

[Haggisboy]

Unless the laws governing credit history checks are different in Australia, you shouldn't have to pay anything to find out your credit rating. Sure there's a ton of sites that will do it for a fee, but you're probably just giving money away.

In the States and Canada Equifax (link to their Australian site) (http://www.equifax.com.au/links.htm) will provide you with a detailed credit report for free if you request it in writing. The laws may be different down under, but don't pay anything until you've checked first.

[Al]

When i went for a cc it was based on credit check, money earned and time in job.

Also you'll only get a bad rating if you default on paying something which is (typically) around 3 months.

[gooey]

just went thru this stuff to get a car.

like sagacious said its just a record of all your financial dealings with institutions registered with Baycorp.

at the top it has a big list of stuff like - defaults, bankruptcies (sp?), overdraws, enquiries etc etc - with the number of times each has happened.

then below that are the actual details for each of the above.

it also has your last few addresses and employers at the top

enquiries will matter if you have heaps of enquiries for the one thing - eg. if you are going for a car and there are already 3 enquiries for car loans.

a default will hang around on your record for 5 years - im not sure if its actually deleted after that, but it is disregarded if its paid and its been 5 years.

however during that 5 years - any default whether paid or not is going to cause a lot of pain and torment when trying to get loans/cc's etc

and baycorp will send your record by snail mail for free - but it costs to get it faxed/emailed

Baycorp Advantage Public Access
PO Box 964
North Sydney NSW 2059

[Sagacious]

Another thing to bear in mind...

Member companies will be all too willing to list you in a heartbeat but when it comes to notifying Baycorp of a default that's been remedied or a diputed matter being resolved they can be mighty slow.

Make sure you hound their ass to notify resolved issues.

If they don't notify Baycorp in particular of disputed defaults that have bee resolved that can be seen as defamatory.

[ShinymetalASS]

Member companies will be all too willing to list you in a heartbeat but when it comes to notifying Baycorp of a default that's been remedied or a diputed matter being resolved they can be mighty slow.


Aint *that* the fucking truth :D

[ezer]

they should have called it "jhonny deformed"

i just applied for my first credit card on wednesday....... never had anything before but now im saving alotta money and spending little so hopefully they will give it to me.....

[Arcane1]

they should have called it "jhonny deformed"

i just applied for my first credit card on wednesday....... never had anything before but now im saving alotta money and spending little so hopefully they will give it to me.....
The best way (at least here) to establish credit is to have a savings account at a bank with $500 or $1000 in it. Then go to the loan officer and take out a 12 month loan for either the 500 or 1000 for 12 months signing over the savings account as collateral. Pay the 12 month loan back in 9 or 10 months. That give you a repaid loan on your record and a good way to establish a footing with a bank and a loan officer. It is also a good way to re-establish if your credit is crappy.

Note: Make sure that repaying the 12 month loan in less time doesn't have a penalty attached. :stab: