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How your credit history is made (and why it matters down the track)

2 min read | 20 Jan 2020

Credit History
Credit History

Every time you apply for finance, you’re adding to your credit history. And every time you apply for finance, that credit history is checked.

In the past, only the bad stuff, like missing payments, showed up. It wasn’t really fair, so Comprehensive Credit Reporting (CCR) made changes to reflect the true picture of your credit history – good and bad.

This is a good thing, because now when you’re making your repayments on time, it’ll show up on your credit report.

What’s in your credit report?

When applying for finance, all lenders see similar information on your report such as:

  1. Any loan enquiries made within the last 5 years

  2. Names of credit providers you have applied for credit with, currently have credit with or repaid a loan with in the last 5 years

  3. Details of any defaults or debts that are overdue

  4. The date an account was opened or closed

  5. The current credit limit of the account

  6. 24-month account payment history indicates you have made regular on time

If you want to know more details about each of these and how they are calculated and recorded on your credit report, visit Credit Smart.

What’s it used for?

It helps us understand your credit history and work out whether you’re likely to default on your repayments. It’s an important factor in our decision – but certainly not the only thing we use to assess your credit application.

If you would like to know more about credit scores and how they are calculated, visit Credit Smart for more information

Who sees it?

The new rules also mean that the industry will be more open, and we will be sharing information with our credit reporting partners that we don’t currently share.

Again, it means we now share the good, not just the bad. But what’s reported in your credit history may impact future credit applications and the amount of credit offered, so having a good credit history is really important.

We want your credit history to be an asset so here are seven ways to improve your credit score.

Is your info safe?

We, and all credit reporting bodies, have a legal responsibility under the Privacy Act to keep your information secure. For more information refer to our Privacy Policy.

You’ve got nothing to lose except your home loan!

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