Credit Check - What Is Shown?

[equus]

Simultaneous posts! (but saying much the same thing)

Whilst numbers of enquiries may well be relevant, and The Rok obviously has knowledge of some institutions approaches, don't place reliance on the numbers (6 for instance) being hard and fast across institutions. YMMV (the shock may occur at under 6, depending what else is going on).

 

[Jack_OC]

Thanks for the info. FYI, my reason for being interested is that I'm in the middle of refinancing my home loan. I'm slightly concerned after reading all of this, as I've had quite a few credit cards over the past few years (all for the purposes of maximising points - no issues with debt). A bloke from the bank called me the other day to talk through the application, and clearly had my credit report in front of him, as he asked me questions about a few "enquiries", but interestingly only a subset of all the ones I'd expect to be on there. He didn't give any indication that there was any cause for concern, but not sure if that means anything either way. I guess I'll find out soon!

 

[Aussie_flyer]

Thanks for the info. FYI, my reason for being interested is that I'm in the middle of refinancing my home loan. I'm slightly concerned after reading all of this, as I've had quite a few credit cards over the past few years (all for the purposes of maximising points - no issues with debt). A bloke from the bank called me the other day to talk through the application, and clearly had my credit report in front of him, as he asked me questions about a few "enquiries", but interestingly only a subset of all the ones I'd expect to be on there. He didn't give any indication that there was any cause for concern, but not sure if that means anything either way. I guess I'll find out soon!

You can check your own file, why not get a copy to see for yourself? You can subscribe to automatic updates so you get notified if new entries are made. Credit Check Australia, Credit Rating, Credit Report | MyCreditFile.com.au

 

[Jack_OC]

You can check your own file, why not get a copy to see for yourself? You can subscribe to automatic updates so you get notified if new entries are made. Credit Check Australia, Credit Rating, Credit Report | MyCreditFile.com.au

Yeah I know, but that won't really help me. From what others have posted above it won't say much. Anyway, I know what's likely to be on there (just evidence that I have applied for quite a few credit cards), what I don't know is what judgements lenders will make based on that information.

It's not the end of the world in any case, I'm just applying to refinance with a different lender to get a lower rate, I can live with the status quo if needs be. I'm still reasonably optimistic it won't be an issue as there is a reasonable amount of equity so not a particularly risky proposition for the lender in the grand scheme of things. But if the multiple credit cards does scupper the refinance application, it will make me reconsider doing the same in future.

 

[wafliron]

Lenders will use their own credit scoring system and therefore have no real use for the Veda scoring system. I have never seen the report a bank gets, I am assuming it doesn't have the score, just the key information in data format for the banks own credit scoring system.

Actually, you've just reminded me of something, which demonstrates that at least some lenders get the Veda credit score on the credit checks they run (TBH, I don't see why they wouldn't all get it, even if they ignore it): there is at least one credit union I know of who will auto-decline any car loan application where the applicant's Veda credit score or RRI are below certain thresholds (I know this because they've told me directly - I work in the auto finance industry, and we deal with the aforementioned institution).

Which leads me to my main point: while it's true that all lenders have their own proprietary credit scoring systems, it's not true that the Veda credit score is completely irrelevant - some use it as one of the inputs to their own scoring system (example above being case-point, and I'm 99.9% sure they're not the only one).

I have never actually seen an "Opening Credit File" score as such so I do not know, however I would think its highly unlikely everybody would start on 1200.

Just confirming, it's definitely not 1200. I've read a document before that mentions what the starting credit score is (not sure if this document is publicly available, or only available to Veda's clients), and while I can't remember the exact number, it's somewhere around the middle of the 0-1200 range (which makes sense if think about it - probably makes most sense for it to be a bit below the mid-point).

 

[Mattyana2003]

I just got my Veda file too. Too many applications this year (8+) and I've been knocked back on the last 4. How long should I wait before trying to apply again? I need more sign up bonuses!

 

[Pollywaffle]

I just got my Veda file too. Too many applications this year (8+) and I've been knocked back on the last 4. How long should I wait before trying to apply again? I need more sign up bonuses!

Personally, I would not bother applying again this year. Approx 2 per month is too many in my book.

 

[wafliron]

I just got my Veda file too. Too many applications this year (8+) and I've been knocked back on the last 4. How long should I wait before trying to apply again? I need more sign up bonuses!

Ouch! I hope you don't need to apply for any significant / necessary credit (e.g. a home loan, car loan) anytime soon!

As The Rok indicated earlier in this thread, there is no hard-and-fast rule about how many is too many - all lenders will have their own proprietary approval matrices / scoring systems, and each will have their own view on this.

Personally, I wouldn't be comfortable with any more than four credit hits in a 12 month period on my own file (and noting that's total hits, not just CC-related ones), and I'd want less - as few as possible - in the lead-up to applying for significant / necessary credit (again, e.g., a home loan or car loan). I'm pretty conservative though.

If you're happy to push the envelope, perhaps look at how many you had in a 12 month period before you started getting knock-backs, and take that as a rough guideline. I'd suggest you back off for a while though to reduce the risk of more declines, given they are just a complete waste - you get another hit on your file for absolutely no gain.

 

[markis10]

Given payment history from Dec 2012 onwards and credit limits along with accounts closed as well as opened can be shown from March 2014, the industry will certainly be better informed on an individuals credit worthiness. It will be interesting to see how they score someone who had on bill only paid a few days late for instance.

 

[EvanC]

You can check your own file, why not get a copy to see for yourself? You can subscribe to automatic updates so you get notified if new entries are made. Credit Check Australia, Credit Rating, Credit Report | MyCreditFile.com.au

I have the update subscription. It's really quite reassuring to get an email every time there's activity on my file.

 

[DeKa]

Does anyone know what the difference between the Veda / MyCreditFile record, and the DnB https://www.checkyourcredit.com.au is?

A couple of years ago I got the free record from both. The DnB one was piecemeal - some applications I knew I had made were not on there, but the Veda one seemed to be complete. I subscribed to Veda on the basis it is more accurate, and once a year or so ask for the free from from DnB. I can only guess some companies check with one service, others with the other service, and some with both (notably HSBC)

 

[coles525]

New credit rules start in 2014, with the plans out for viewing already (ie: public viewing, what can we make better).

1) There are actually 3 reporting agencies, not the 2 we have spoken of (D&B / visa)

2) Link with more info is below:

http://m.theage.com.au/money/saving/clock-is-ticking-on-new-background-checks-20130409-2hhtp.html

 

[oz_mark]

New credit rules start in 2014, with the plans out for viewing already (ie: public viewing, what can we make better).

1) There are actually 3 reporting agencies, not the 2 we have spoken of (D&B / visa)

For consumers, Experian are pretty new on the scene....

 

[The Rok]

For those that are interested you can now buy your credit report & specifically your Veda credit score for $85 from Veda. As per above, scores are listed as 0 - 1200. It is possible to go into a negative score, and even down to -999, but that would be a declared bankrupt individual.

The whole Veda scoring system is based on likelihood of defaulting on a loan within the next 12 months. so, below 200 is an 80% chance of defaulting, not very good and no chance of getting credit. 200 - 400 is a 20% - 40% chance of defaulting on credit, 500 - 700 is from memory a 11% chance of defaulting and 700+ is a 6% chance of defaulting. 500 - 700 is the mean australian score range, this is where you want to be at or above. Plenty of enquires for unsecured credit such as credit cards will result in a significant drop in your score.

Having said that, I saw a credit report this week with 50+ enquiries over the last 5 years for unsecured credit, so basically 10+ per year and her score was 490. Another 10 points and she is all of a sudden back into the average range and a good candidate for credit.

Its worth paying the $85 for your score, and it gets updated monthly so you can track it.

 

[burmans]

For those that are interested you can now buy your credit report & specifically your Veda credit score for $85 from Veda. As per above, scores are listed as 0 - 1200. It is possible to go into a negative score, and even down to -999, but that would be a declared bankrupt individual.

The whole Veda scoring system is based on likelihood of defaulting on a loan within the next 12 months. so, below 200 is an 80% chance of defaulting, not very good and no chance of getting credit. 200 - 400 is a 20% - 40% chance of defaulting on credit, 500 - 700 is from memory a 11% chance of defaulting and 700+ is a 6% chance of defaulting. 500 - 700 is the mean australian score range, this is where you want to be at or above. Plenty of enquires for unsecured credit such as credit cards will result in a significant drop in your score.

Having said that, I saw a credit report this week with 50+ enquiries over the last 5 years for unsecured credit, so basically 10+ per year and her score was 490. Another 10 points and she is all of a sudden back into the average range and a good candidate for credit.

Its worth paying the $85 for your score, and it gets updated monthly so you can track it.

That is certainly a lot of enquiries but as we all know it doesnt necessarily mean you actually borrowed money, you could have been shopping around for best rate. Most lenders seem to put most emphasis on a lot of enquiries in the most recent period (6/12 months) because it implies credit stress, I.e. you maybe searching for finance and having difficulty finding it.

While the OZ system and the US are of course different because the US is more open its possible to use it to understand credit scoring a bit. While of course in US enquiries are less important (because you know how much customers actually have borrowed) their system shows a hit to score when an application is made too but also that as long as you make your payments the score comes back quickly. This will become even more of the case with comprehensive reporting, the biggest indicator someone can pay is RECENT payment history.

 

[coles525]

For those that are interested you can now buy your credit report & specifically your Veda credit score for $85 from Veda. As per above, scores are listed as 0 - 1200. It is possible to go into a negative score, and even down to -999, but that would be a declared bankrupt individual.

The whole Veda scoring system is based on likelihood of defaulting on a loan within the next 12 months. so, below 200 is an 80% chance of defaulting, not very good and no chance of getting credit. 200 - 400 is a 20% - 40% chance of defaulting on credit, 500 - 700 is from memory a 11% chance of defaulting and 700+ is a 6% chance of defaulting. 500 - 700 is the mean australian score range, this is where you want to be at or above. Plenty of enquires for unsecured credit such as credit cards will result in a significant drop in your score.

Having said that, I saw a credit report this week with 50+ enquiries over the last 5 years for unsecured credit, so basically 10+ per year and her score was 490. Another 10 points and she is all of a sudden back into the average range and a good candidate for credit.

Its worth paying the $85 for your score, and it gets updated monthly so you can track it.

Are you talking about the VEDA MYCREDIT ALERT?

I only re subscribed at the start of this month for another year. No where have I ever seen any points based junk on it, only a list of who/when has perved on my credit rating.....

 

[The Rok]

Are you talking about the VEDA MYCREDIT ALERT?

I only re subscribed at the start of this month for another year. No where have I ever seen any points based junk on it, only a list of who/when has perved on my credit rating.....

Veda Starter or Veda Access is what your after.

 

[The Rok]

http://www.veda.com.au/yourcreditandidentity/product-comparison

Here is the link!

 

[Mal]

So Veda ID is the up sell version of my credit alerts? Confusing.

 

[The Rok]

So Veda ID is the up sell version of my credit alerts? Confusing.

Most banks are now using the Veda scoring system to assess applications for credit, previously banks used their own system, just relying on Veda for the data. It is believed to be incredibly accurate at predicting credit default liabilities.

My understanding is that it is one of many changes due to come in the Australian credit file system.

It is an upsell for you & I, but in my humble opinion it is a very worth while investment.