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How to perform a credit health check

by Wealth Architects / 11.07.2018

Significant changes have been made to Australia’s credit reporting rules after a new Comprehensive Credit Reporting regime (CCR) came into effect in the new financial year. This means now is as good a time as ever to perform a credit check.

The new legislation forces full compliance from Australia’s Big 4 banks, who have previously refused to take part.

In years gone by most lenders have only shared negative information. However, the new laws require that positive information such as a history of regular, on-time payments and the early repayment of loans is also included.

It is expected that this will result in increased scores for many borrowers.

Why should you do your own credit check?

Lenders will have access to your credit score, and you should too.

You don’t want to have a loan application declined because of inaccuracies, errors, or identity theft – all of which can find their way onto your report.

It’s therefore prudent to review your credit score once a year to make sure there are no surprises.

How can you conduct a credit check in Australia?

You can get a free credit report once a year from one of three national credit reporting bodies (CRB’s) which are listed on this government website.

You can also get a free report if you have had a loan application refused within the past 90 days, or if the request relates to a correction request.

If not, there are a number of fee-for-service options, depending on where you live.

Tasmanians are advised to check with the Tasmanian Collection Service and Equifax, and those living in other states, to check with Equifax, Dun & Bradstreet and Experian.

Keep in mind that it’s possible you could have a credit report with more than one agency.

Next steps

If you find errors in your report, you can get them corrected before they can adversely affect your credit score.

For those who find they have a ‘poor’ credit rating, you can take steps to improve it by clocking up a period of future consistency and reliability.

For those with a good credit rating, you will be better positioned to demonstrate your credit worthiness and seek more competitive interest rates.

If you’d like any help conducting a credit check or addressing what you find out, please don’t hesitate to sing out.

We can walk you through the process to help you secure the credit you need to purchase your next property.