News Archive
2011
2010
2009
- December [7]
- November [9]
- October [10]
- September [10]
- August [10]
- July [8]
- June [9]
- May [5]
- April [7]
- March [8]
- February [9]
- January [15]
2008
- December [19]
- November [18]
- October [20]
- September [16]
- August [13]
- July [17]
- June [15]
- May [17]
- April [15]
- March [18]
- February [10]
- January [15]
2007
What is a Credit File
Monday December 28, 2009
Credit files are created for every person who has or has had an open credit account or loan within the last seven years and can determine the success of future financial applications. Basically a credit file or credit rating records information such as repayment history, the size of debt and the forms of credit taken.
Credit files are designed to help identify the cardholder for official reasons while providing further identification proof of personal details, business details and financial history. From a consumer perspective they are invaluable when it comes to getting approved for loans or other large forms of credit, most importantly for mortgages, as they are used to provide evidence of your credit history and how you handle debt and repayments.
How credit ratings are calculated:
- Payment History - 35 per cent
- Outstanding Debt - 30 per cent
- Established Credit - 15 per cent
- New Credit - 10 per cent
- Type of Credit - 10 per cent
Although there is far more information included on your credit file than strictly financial credit details. The kind of information that is stored on your credit file will be basic with name, any institution you applied to open a line of credit with, dates, any credit limit amounts and the reasoning behind the card. This information is recorded for the benefit of any banks, financial institutions, companies and businesses for general records although it should be noted that credit card providers are not allowed to view the files of an individual without that individual's specific permission.
Due to the importance of a person's credit rating is it highly recommended that individuals check their credit rating annually in order to confirm that all details and recordings listed are correct and accurate. This can be done simply by contacting a credit reference agency and requesting a copy of your credit file, which is free unless it needs to be sent express. If you choose to do this, be sure to check over all details from your name's spelling to comparing your repayments to your credit cards statements.
You should also note that all information on a credit file or credit rating will be deleted after it has been on there for seven years or after five years for credit applications and defaults.
CreditCards.com.au is an Australian owned information provider on Australian credit card products. Please use our Compare the Top Ten Credit Cards table to find the right credit card for your financial needs.
We cover a wide range of credit card services provided by credit cards companies through the banking and financial sector.
