Protect your credit rating – Mango Money

Protect your credit rating

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Protect your credit rating by checking your credit history. This is important to keeping your finances working well. Bad credit histories can ruin your future; making it hard to borrow any money or even open a telephone account. A credit record is held for every credit active person and every time you apply for credit the details on where you have applied for credit, the amount applied for and the purpose of the loan is recorded. Other important information such as overdue accounts (defaults), bankruptcy and judgements are also listed in your credit file. From this information, a lender can make a judgement on whether they will lend you money.

Checking your credit file ensures that your information is correct and if not, that you can correct it. Doing this before applying for any loans lessens your chance of getting declined. You may also have overdue accounts that you may have forgotten about and need to attend to. You don’t want to ruin your credit rating with a bill you have forgotten. Another important reason for obtaining your credit file regularly is identity fraud. Many Australians don’t realise that someone may be using their identity until they get knocked back on a loan. By then a thief may have racked up thousands in debt that you may be hounded for from a debt collector. To find out more about Identity fraud check out this article on the AFP website

Information can be on your file from 4 years to 7 years depending on the type of information. (Four years for writs and summons, 5 years for credit enquiries and applications and seven years for bankruptcy.) You also need to be aware that even if you had a default that you paid out in full, it will still remain on your file. So making sure that your details are correct is important as any mistakes or bad credit decisions will stay with you for quite a number of years.

Veda is one of the largest credit agencies in Queensland and can provide you with your credit file free of charge. They have a free service that takes ten working days or a fee for express service.  Veda also has premium services to alert you of any credit activity on your file.  If your information is incorrect you need to inform Veda in writing with documentation. Veda then verifies your information and updates your file. If you have any problems or need more information Mango Financial Services can help you check your credit file and provide advice if any errors on your file are found.  So don’t forget to keep your finances running smoothly and get annual credit checks or at the very least check before applying for any loans.