Checking your credit report can improve chances of getting a loan, says agency

Article Category: Loans & Lenders

By Nhada Larkin, From: News Limited newspapers, 7 June 2010

WHENEVER you apply for a loan your financial institution will look at your credit report but research suggests more than 80 per cent of Australians have no idea what that document says about them.

Credit reporting agency Dun & Bradstreet says people should check their credit report at least once a year - it's free - and be aware of what actions can affect a credit report.

Credit reports in Australia only include identification details, credit applications and negative events such as defaults and bankruptcies. But from next year, extra details such as a person's repayment history are set to be added.

Dun & Bradstreet chief executive Christine Christian (pictured) says regularly checking your credit report can help people secure credit.

"Consumers should place themselves in a position to understand exactly what a lender will see, and this means the first step to applying for credit should be ordering a copy of your credit report," Christian says.

"This will allow consumers to find out whether recent credit applications will make it look like they have taken on too much debt, or if previous late payments are listed, potentially making it harder or more expensive to get credit."

Dun & Bradstreet research shows that 86 per cent of Australians have no idea what their credit profile looks like.

Christian says the level of negativity on a credit report is determined by things such as whether a default has since been repaid or is still unpaid.

"In addition, credit applications are listed on a credit report and this means that too many credit inquiries, even when just shopping around for the best deal, can look like a consumer is taking on large amounts of debt," she says. 

Credit reporting agency Dun & Bradstreet says people should check their credit report at least once a year - it's free - and be aware of what actions can affect a credit report.

Credit reports in Australia only include identification details, credit applications and negative events such as defaults and bankruptcies. But from next year, extra details such as a person's repayment history are set to be added.

Dun & Bradstreet chief executive Christine Christian (pictured) says regularly checking your credit report can help people secure credit.

"Consumers should place themselves in a position to understand exactly what a lender will see, and this means the first step to applying for credit should be ordering a copy of your credit report," Christian says.

"This will allow consumers to find out whether recent credit applications will make it look like they have taken on too much debt, or if previous late payments are listed, potentially making it harder or more expensive to get credit."

Dun & Bradstreet research shows that 86 per cent of Australians have no idea what their credit profile looks like.

Christian says the level of negativity on a credit report is determined by things such as whether a default has since been repaid or is still unpaid.

"In addition, credit applications are listed on a credit report and this means that too many credit inquiries, even when just shopping around for the best deal, can look like a consumer is taking on large amounts of debt," she says.