What's on your credit report?

By Joanne Grey

You've found the perfect house to rent in the right neighbourhood. The rental agent assures you it's yours, and says, "We just need to check your credit report." You sign the consent forms and sit back, thinking of summer days on the wide deck -- it's going to be great. You awaken from your reverie and notice the rental agent's frown. "Um," she says. "We seem to have a problem." And that's it. Bad credit report equals no house.

Your credit report is your financial resume and is checked whenever you apply for funding. A credit report contains some personal information as well as financial information, including:

• Credit and loan applications made in the last five years.
• Accounts where you have defaulted on a loan or credit payment.
• Records of court judgments and bankruptcies.

A credit report includes a score that is based on all the information present in the credit report. This score allows anyone to easily make a judgment about whether or not to extend you credit or, as in this case, rent you a property.

You can get a copy of your credit report from www.checkmyfile.com.au in Australia. Be on the lookout for common credit report inaccuracies in:

• Personal details. Ensure all is correct including the spelling of your name, a correct address and even postal codes.
• Contact information. If creditors can contact you easily, you will be able to deal with any outstanding bills before negative information is placed on your credit report.
• Account accuracy. Ensure that every account listed on the credit report is yours. Beware of identity theft.
• Credit report enquiries. You have to give permission for a credit report enquiry. If you see an unauthorised enquiry on your credit report, it may mean that someone else is trying to open accounts in your name.
• Incorrect address. An incorrect address could be an indication that someone else has used your name to access credit.

If you find inaccuracies in your credit report, it is crucial that you contact a credit report agency to correct the mistake. Ensure all communication is in writing. If you do not believe your issue is being dealt with properly, you can contact the Federal Privacy Commissioner on 1300 363 992 or www.privacy.gov.au. You have 12 months from the date when you became aware of the issue to complain, so do it before you forget.

Avoid problems with rental properties, credit applications and payment plans by checking the accuracy of your credit report regularly.

Article by Joanne Grey

Published: August 5, 2009