Credit history warning: How to work out your credit rating

AUSTRALIANS should be checking their credit report at least once a year, experts advise. Here’s how to get yours.

MONEYSAVERHQ .. Credit Score. Hand putting check mark with red marker on poor credit score evaluation form. Picture: Supplied

AUSTRALIANS should be checking their credit report at least once a year, experts advise.

Australian Privacy Commissioner Timothy Pilgrim says if someone is a victim of identity theft or their credit card details are compromised, it could mean that late payments, new credit accounts and possibly defaults appear on their credit report.

“The trend towards conducting more of our transactions online using credit cards could affect people’s credit reports as much as their bank balances,” Mr Pilgrim says.

“Checking your credit report annually is just as important as checking your bank statement, which we all do regularly.”

Industry body the Australian Retail Credit Association’s CEO Damian Paull advises checking your credit report at least once a year.

“By checking your credit report regularly, you can ensure you are aware of what is on it, including any errors, and save yourself from potential headaches and disappointment down the track when you apply for a loan or credit card,” Mr Paull says.

Consumers can follow the links on the CreditSmart.org.au website, developed by the ARCA, to request a copy of their credit report from each of the three credit reporting bodies.

Consumers have the right to:

* Get a free copy of their credit report annually, from each of the credit reporting bodies. If a credit application is rejected, they are entitled to request another free credit report.

* Challenge and fix errors on their report, which credit providers and credit reporting bodies must investigate and correct free of charge.

* Escalate complaints to external dispute resolution services such as an ombudsman.

* Have a ban placed on their credit file, to protect against it being accessed in cases of suspected identity theft.

Source: ARCA.