Good or Bad credit rating?

[Mrmaxwell]

Without getting into too much details yes I've had experience with credit ratings and understand the Oz system very well.

The main issue in Oz is that no positive information is recorded against one's file - only negative. If someone defaults on a $100 phone bill through no fault of their own and this bill is subsequently paid in full - the bill payment is updated as paid on your credit file yet the default remains for 5 yrs.

When you apply for credit you are refused 100% of the time as you have a default listed when a lenders system queries BayCoRP/Veda - nevermind it was paid in full or was only $100 - you are a credit risk end of story.

At least overseas by having a true credit 'rating' when you pay a bill on time or pay an overdue/defaulted bill your score then adjusts to refelct this positive activity, so both positive and negative financials are recorded.

Edit: Check out the link below which explains how the US/UK systems work;

http://www.fuelthemind.com/finance/credit_rating/score_calculation.html

 

[NM]

At least overseas by having a true credit 'rating' when you pay a bill on time or pay an overdue/defaulted bill your score then adjusts to refelct this positive activity, so both positive and negative financials are recorded.

And the downside of the US system is that in order to get credit you need to have some positive activity on your profile. That can be difficult to obtain quickly. In Australia, having no previous credit history on your file can be a good thing rather than a bad thing.

Swings .... Roundabouts - I know.

 

[oz_mark]

In Australia, having no previous credit history on your file can be a good thing rather than a bad thing.

Can also be a bad thing!

 

[vilemerchant]

Is veda advantage the only credit reporting agency in Australia?

 

[oz_mark]

Is veda advantage the only credit reporting agency in Australia?

It's the main one, but there are others such as Dun & Bradstreet

https://secure.dnb.com.au/ccb/AU/your_credit_file.asp

 

[vilemerchant]

It's the main one, but there are others such as Dun & Bradstreet

https://secure.dnb.com.au/ccb/AU/your_credit_file.asp

Damn. A few years ago I had a $700 default from a particularly coughpy ISP that I refused to pay and to my surprise when I recently accessed my Veda file it wasn't listed. I guess it'll definitely be on the D&B report tho as I think they were the ones sending me the demands for payment. :evil:

 

[oz_mark]

Damn. A few years ago I had a $700 default from a particularly coughpy ISP that I refused to pay and to my surprise when I recently accessed my Veda file it wasn't listed. I guess it'll definitely be on the D&B report tho as I think they were the ones sending me the demands for payment. :evil:

You can get a copy of the file.

I know someone that got listed during the One.Tel collapse for not paying. Never mind the difficulties of paying a company that has gone belly up...

 

[vilemerchant]

You can get a copy of the file.

Yeah I'm thinking about it, but since I haven't heard much from D&B for the last 2 years I'm not really sure I want to remind them that I still exist and where I live/work for etc. I really have no intention at all of paying this 3 year old debt.