The black marks that can impact your credit file

Consumers should be checking their credit report because it can impact their ability to get a loan. These are the important pieces of information that can impact your credit file.

AUSTRALIANS should be checking their credit reports annually but few bother to do it.

For the past year, consumers’ positive credit information has been recorded on their credit file - helping paint a better financial picture of people who are good at paying their bills.

The Retail Credit Association’s chief executive officer, Mike Laing, said keeping a regular check on your credit report was vital because it could impact your ability to get a loan.

“Comprehensive credit reporting gives consumers control over their credit report because now there own behaviour is reflected,” he said.

“If people are up to date with their loans and paying on time they should find it easier to get a loan when they need to go to a bank.”

How this couple dug themselves out of $60,000 in debt

Millions of Australians will have their super accounts handed to the ATO

In recent years lenders have had to tighten their belts when it comes to dishing out credit, particularly home loans and credit cards.

In July last year comprehensive credit reporting was rolled out. It expanded the detail held on a credit report by not just documenting a person’s negative credit history such as loan defaults and bankruptcies, but also their positive history such as repayment behaviour.

The information on your credit report can impact you being able to get a loan.

Credit information kept on a credit report helps creditors determine whether an individual can afford a loan, increase their credit limit on an existing loan or just be able to repay it.

But new research from creditsmart.org.au found only one in four consumers bother to check their credit report, and only one in three are aware that credit reporting changed last year.

A credit file includes the following:

• Types of loans and credit you have applied for in the last five years.

• 24-month breakdown of bills from, for example, telcos and utilities to show your repayment history.

• Any defaults on your credit accounts, or if you missed payments by at least 60 days.

• Any court actions and bankruptcies.

Comparethemarket.com.au spokesman Rod Attrill said a credit report was “a true view of a customer’s credit history”.

“Previously if you missed an electricity bill it was in the negative reporting, but the people who benefit from it will also be from the positive reporting,” he said.

Consumers can access their credit report for free, but be aware that credit reporting agencies may give you the option to pay for extra services when you ask for a copy of your report.

@sophieelsworth

Where you can access your credit file for free

• Illion, previously known as Dun and Bradstreet.

• Equifax.

• Experian.

• Tasmanian Collection Service.

• Compuscan.