Your Credit Rating – What You Need To Know Article

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Your Credit Rating – What You Need To Know

What is a Credit Report/Fie? Do you know what is in your Credit Report/File? Now is the time to find out. Learn how to get a free copy of you credit report

Author: J Smith

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What Is A Credit Rating/Report (Also called a Credit File)?

A credit report is information collected over the years about all of your financial history.

Anyone who has ever applied for credit, a mobile phone, electricity account will have a credit report.

Some details it will contain are:

1. When credit has been applied for and from who ( bank or institution)
2. The amount that was applied for
3. Personal details (name, address, date of birth ect.)
4. Overdue accounts
5. Bankruptcy details

Plus any other details related to your financial history.

Why Keep A Good Credit Rating/Report?

A good credit rating/report is extremely important as a credit check is a vital part of a lenders selection criteria, not only will it have an effect on the outcome of your loan but it will also determine the kind of interest rate you will be offered on your loan. If you have a bad credit rating/report you are likely to be offered a higher interest rate for your loan.

How Long Does A Paid and Unpaid Debt Stay On My Credit Report?

An overdue account listed as a payment default even when paid will remain on your credit report for 5 years form the date that the debt was listed.

Bankruptcy information will remain on your file for 7 years (if bankruptcy was filed after 1998)

Clearout information is held for 7 years. What is clearout? Clearout is a confirmed missing debtor, this is when a creditor has tried with reasonable effort to contact the debtor and has been unsuccessful in doing so. If contact can not be made the creditor does not have to wait until the payment is 60days overdue.

Do I Need A Copy Of My Credit Report?

It is a good idea to get a copy of your credit report to check if there are any mistakes, you may have paid an outstanding debt but your report is still showing it as unpaid. Having a copy of your credit report is also a good way to make sure that your identity hasn’t been stolen and being used by someone else.

For more information and to get a free copy of your credit report/file go to

www.yourcreditfile.com.au

About Author

For more information or to apply for a loan go to http://www.financeandloans.com.au

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