Having a More Attractive Credit File | Improving Your Credit

The key to having a more attractive credit file

What is the difference between my credit score and credit file?

In a nutshell, your credit score is a numerical value calculated from the information in your credit file. Credit scores are rated on a scale of 0-1,000 or 1,200. Since that’s quite a broad range, we’ve included below the Equifax score range to get an idea of what your credit score means:

  • Bad: 0 – 509
  • Average: 510 – 621
  • Good: 622 – 725
  • Very good: 726 – 832
  • Excellent: 833 – 1,200

On the other hand, a credit file is a report designed to summarise your credit history, which includes your repayment history as well as any overdue debts.

Where can I find my credit file report?

Each year, you’re entitled to a free copy of your credit file report. Your personal report can be used to see what lenders and other providers like telephone and gas companies check when you make an application. You can visit one of 3 nationwide credit report companies listed below to get started:

  • Equifax (formerly Veda)
  • Illion
  • Experian

Is everyone eligible for a free credit file report?

Yes, you can obtain a free copy of your credit report with most bureaus at least once every 12 months. However, you might require a credit report more than once a year in some circumstances. In this case, once you’ve received your free annual credit report, you can apply for more. You have the choice of ordering all of your reports at once, or you can order them one at a time. By requesting them separately you can monitor your credit through the year.

You will usually receive your credit report within one business working day, provided you are able to verify your identity.

What can I expect to find in my credit report?

Your credit report will be unique to you. It will collate your credit history into a profile that can be viewed by you and your financial providers during your applications. You can expect to find information on the following:

  • Personal information
  • Repayment history
  • Current debt or defaults

Why your credit file history matters

Above all, banks and other financial providers judge their risk in letting you borrow their money by looking at your credit file. It’s not uncommon for there to come a time in your life where might you need to take out a loan. So, in certain cases, you may have not been given a credit score yet. This could be because you’re still relatively young, or because you haven’t needed any credit cards or loans. Not having a credit score does make things a bit more complicated, but by no means does it make it impossible.

How to avoid defaults on your credit file

A default on your credit file can cause a big knock to your credit score. A default occurs when you have an outstanding debt that you fail to pay within 60 days of their due date. These debts must be worth at least $150 and are commonly utility or telephone bills.

What is a serious credit infringement?

A serious credit infringement occurs when you have an overdue debt to a credit provider but have left or appear to have left their last known address, without paying the debt or informing the credit provider with a forwarding address. If this occurs, you will have 6 months to pay off the debt before it will be included in your credit file which can lead to serious issues when applying for loans in the future.

How long do defaults stay on my credit file?

How long defaults stay on your credit file depends on what you have done and the severity of the issue. Consequently, they can stay on your account for up to 6 years from the date of the default.

A serious credit infringement can remain on your credit file for a varying amount of time depending on what the infringement is.

How can I clean these infringements off my record?

Overdue debt is not removed from your credit file just because you have paid your debt. Getting infringements off your credit file before the usual timeframe is difficult, although not impossible. Therefore, you will need to have proof that the default or infringement was listed in error or that the creditor did not make reasonable efforts to contact you. If this is the case they may be forced to remove the credit default. If you are unsure as to whether you want to challenge the creditor on your own you can enlist the help of a credit repair agency.

However, be aware that there will be a charge involved and you should ask for a written quote of costs before you begin. This may be worth the expense to you however if it improves the deal and the possibility of you getting the mortgage and interest rate you are applying for.

There are many companies who offer financial counselling to help you clean up your credit file but it is recommended that you get a written quote first and read the fine print on what their services do and don’t include.

5 ways to improve your credit file:

  • Identify the issues stated in your credit report
  • Consistently start repaying your debts
  • Negotiate with lenders on a repayment plan that suits you
  • Consider getting some help from a financial counselor

Can I get a personal loan with a poor credit history?

If you have a bad credit history, you may find the big banks say ‘no’. Built on traditional pillars of loan assessment, big banks still shy away from applicants with bad credit. That’s when you can count on Nifty. The way you send and save money has changed, so we think the way you borrow should change too. That’s why we look at more than just your credit score when assessing your suitability for a loan. Our team also look at your current relationship with money, such as your income and spending habits. 

So, if you’re looking for a bad credit loan, apply with Nifty, and we’ll give you the fair go you deserve.

Am I eligible to get a bad credit loan?

Generally, eligibility requirements differ from lender to lender, so make sure you check before you apply to borrow money. 

To apply with Nifty Loans, you just need to meet the following four requirements:

  1. You must be over 18 years age
  2. Be an Australian citizen or permanent resident
  3. Receive a regular income into a personal account for at least 3 months
  4. Have an Internet banking account
  5. Have an active mobile number and email address

If you meet the above requirements, then you’re ready to submit an application! Scroll up and use our loan calculator to get started!

How long does it take to improve my credit report?

Credit inquiries can stay on your credit file for a long period of time, so if you are going to apply for a loan ensure you put your best foot forward and your application is an excellent representation of your financial situation.

If one institution knocks you back, the next bank you apply through will be asking why and you may not get the best deal. So, check out our blog on ‘How do I know if I have bad credit?’ to learn more.

Finance Nifty
Finance Nifty

Personal Loan Details

Loan Amounts $5,000 – $15,000
Loan Terms 9 – 24 months
Starting Interest Rate (APR) 11.42% (Excellent Credit)
Starting Comparison Rate 14.49% (Excellent Credit)
Ceiling Interest Rate (APR) 21.24% (Average Credit)
Ceiling Comparison Rate 45.56% (Average Credit)
Type of rate Fixed Rate
Repayment options Weekly, Fortnightly, Monthly
Monthly Fee $0
Early repayment fee $0
Average turnaround 60 minutes*
Loan Options Unsecured & secured options

Credit criteria and terms and conditions apply. Representative example: based on a loan of $10,000 over 36 months a borrower with an excellent credit history can expect to pay a total of $12,389.76. WARNING: This comparison rate is valid only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate with the lender that finances your loan. Interest rates vary subject to a full credit assessment. This represents a comparison rate of 14.49% p.a. and includes all interest and fees included in your loan repayments over the life of your loan. For our personal loan product the APR starts from a minimum of 11.42% (14.49% comparison rate) with a maximum of 21.24% (45.56% comparison rate). The minimum loan term is 9 months and the maximum loan term is 24 months. For more details and examples visit our rates and fees page.