Do you have a clean credit file?

You might think that you do, but without getting a credit history check, you won't know for sure. There could be some unexpected factors lingering in your file from years and years ago - factors that you thought may not even count towards your credit score.

What factors do end up on a credit history, and how could they affect your ability to take out a loan in the future?

More than just debt

According to the Office of the Australian Information Commissioner (OAIC), something as simple as your loan repayment history can have a lasting impact on your credit score. It is your repayment history information, that ends up on your credit report, it does not show the amount of money that you did not repay, but rather that you missed a payment. You are deemed to have missed a payment if you have not paid the full amount 14 days after the due date.

Repayment History Information can only be can only be recorded on your credit file if it is related to a line of credit from a licenced provider, however, such as a mortgage repayment, student loan or credit card balance.

Failure to fix a poor credit score could hold you back from buying property because you'll be rejected by mortgage brokers and banks for a home loan.

How is my credit score calculated?

Your credit score is calculated based on information from your credit file, and gives a score between 0 and 1,200. The higher the score the better, and the less likely you are to have to pay elevated interest on a loan.

The average credit score in Australia is 749, but a reasonable score can be as low as 622. If you don't regularly check your credit score, you won't notice when something goes wrong (even if it's a mistake) and your credit score may be low until you get a report and work on repairing it.

Something as simple as enquiring at lots of credit providers for the best deal can severely impact the likelihood that you'll be accepted by another provider.

If you're unsure what your credit score is, or if you keep getting rejected by credit providers, there's probably an underlying reason and Easy Credit Repair can work on repairing this for you.