In this video we talk about how to check your credit file, what is it, how it is created and what you can do to keep it looking good. By the way, a credit file is sometimes referred to as a credit report, and what it contains may be referred to as a credit rating or credit history.

Veda Advantage, previously known as Baycorp is a credit reporting agency.  Lenders, banks, non-banks and credit providers all subscribe to Veda so that they can do a history check on potential borrowers. 

So every time you apply for a home loan/mortgage, personal loan, credit card or enter into a contract, even with an interest free period, the credit provider makes an inquiry to Veda to investigate what credit application history you have made over the past 5 years. This gets added to your credit file.

In addition your credit file will advise whether you have any listed defaults, court judgements or bankruptcy notices. 

This information feeds in together with your credit application history to give you a credit score.  This credit score feeds in to a lenders decision about whether they’re going to approve you for a mortgage or not.

What many people don’t realize is that there are many companies who subscribe to Veda also, in particular telecommunications and utility companies.

So if you are moving house, be sure to pay your utility bills and telecommunications bill on time!  To find out what your current credit report shows you can ask Veda for a copy of your report.  This will cost around $36.

The advantage of this is you can get some insight into your credit application history and the strength of your credit score.  Most importantly when you are ready to take out a home loan make sure that you do your research on the phone or over the internet.  Don’t apply for multiple loans with multiple lenders at the same time.  If you do this, you will have many credit applications noted on your credit report and this will lower your credit score.

I hope this information has been helpful and has highlighted how important it is that you keep your credit report looking good.