understanding your credit file

[HD_ACE]

so I received my credit report today and have a few questions.

I have one lender making periodic reviews on my report every 3 months or so. is this normal and will this affect future borrowings?

I have enquiries under consumer credit and one under commercial credit. whats the difference?

is there a rule of thumb for number of hits before it becomes a problem for lending or refinancing? with or without lmi?

also do you have one credit file per country? if so are your international ones checked every loan aswell?

thanks for your help

 

[Terry_w]

Broadly

1. possibly a credit card - not nice of them, it will affect future credit scoring ratings

2. commercial could be for a business related item, guarantee maybe.

3. 6

4. in Australia there are 2 D & B and Veda. International credit reporting isn't usually checked for residential lending.

 

[Aaron_C]

If you are borrowing money under 80% LVR, then the number of enquiries on your credit file is much less of an issue as credit scoring is pretty lax at those levels. However, an application can still be rejected IF other factors are weak such as servicing / job type etc.

If you are in LMI territory, then you really need to limit your enquiries in the last 12 months to less than 5-6 as beyond this the mortgage insurers tend to reject you if you are borderline.

 

[speary]

Do credit card applications create a hit on your credit file?

Do rejected applications create a bigger hit, if that makes sense?

 

[Aaron_C]

Do credit card applications create a hit on your credit file?

Credit cards are the same as other applications for credits - just an enquiry. Credit scoring works on the number of enquiries because they can't see if the application was approved or not (so they assume it is).

 

[HD_ACE]

Broadly

1. possibly a credit card - not nice of them, it will affect future credit scoring ratings

2. commercial could be for a business related item, guarantee maybe.

3. 6

4. in Australia there are 2 D & B and Veda. International credit reporting isn't usually checked for residential lending.

Yes the credit card is doing reviews. Can i stop them from doing that?

The commercial hit is for qbe lmi for a resi prop. But theres also one from them on the resi side for another resi loan.

Cheers

 

[HD_ACE]

If you are borrowing money under 80% LVR, then the number of enquiries on your credit file is much less of an issue as credit scoring is pretty lax at those levels. However, an application can still be rejected IF other factors are weak such as servicing / job type etc.

If you are in LMI territory, then you really need to limit your enquiries in the last 12 months to less than 5-6 as beyond this the mortgage insurers tend to reject you if you are borderline.

1 loan 1 lmi 18months ago
1 loan 1 lmi 1 credit card 9-11 months ago
3 credit card periodic review ( classed as file access) last in june.

Looking do do a 90% refinance and then another loan for a build in the next 3-6 months.

Servicing and job good.

How does it look?

Cheers

 

[Terry_w]

Yes the credit card is doing reviews. Can i stop them from doing that?

Only by closing it.

 

[Moneyman_85]

I checked my credit score in june and when I had a HSBC credit card they were doing checks every month!? only had this card for 4 months tho

 

[Rickardo]

1. possibly a credit card - not nice of them, it will affect future credit scoring ratings

Why does an institution requesting to view your file have an effect on your rating? I have an old Virgin cc (now Westpac) and they do quarterly requests.

 

[Terry_w]

Why does an institution requesting to view your file have an effect on your rating? I have an old Virgin cc (now Westpac) and they do quarterly requests.

With credit scoring the lenders assess you on a points basis. The more inquiries you have the more it looks bad - possibly you are desperate and applying for finance all over the place to try to keep afloat sort of thing.

 

[Aaron_C]

Those no of enquiries looks ok. Don't worry about the periodic cc reviews as they are not 'applications' for credit and are not treated the same as an enquiry.

 

[HD_ACE]

Thanks all

 

[Ausprop]

I looked at my file and saw david jones amex doing perdioical reviews - I went off at them as I never applied for the conversion from DJs to DJs amex and had actually terminated the card years ago - hadn't used it for 10 years either. I got a letter from them confirming that they were incompetent but the credit file is still pinged all over it

 

[tambourineman]

With credit scoring the lenders assess you on a points basis. The more inquiries you have the more it looks bad - possibly you are desperate and applying for finance all over the place to try to keep afloat sort of thing.

The periodic reviews don't count as enquiries if you read the summary sheet - I think they are only interested in enquiries where they were initiate by the borrower

 

[Marty McDonald]

Correct Citibank does periodical reviews as do some other lenders it is not an enquiry and comes under a different section of your file. I doubt it has any bearing on your score.

Early next year your file will have a lot more info too. Credit card limits, loan repayment history and a record of any missed payments (missed defined as more than 5 days late). This will include for utilities and telcos as well.

I suspect an initial period of drama as otherwise "clean" deals / applicants get declined due to a patchy history of paying bills a bit late.

 

[tambourineman]

Correct Citibank does periodical reviews as do some other lenders it is not an enquiry and comes under a different section of your file. I doubt it has any bearing on your score.

Early next year your file will have a lot more info too. Credit card limits, loan repayment history and a record of any missed payments (missed defined as more than 5 days late). This will include for utilities and telcos as well.

I suspect an initial period of drama as otherwise "clean" deals / applicants get declined due to a patchy history of paying bills a bit late.

The problem is most people haven't idea of these chnges it's pretty poorly managed if you ask me , considering they have been allowed to record this new data for the last twelve months

 

[s0805]

I've recently applied for credit file through Veda (first time....)how often you guys suggest one should check credit file.....and continuous checking of credit file (e.g. yearly) has any negative effects....

 

[luckyone]

Nope, checking your own credit file doesn't appear on the list of credit checks for when the banks check (or other creditors).

 

[cimbom]

Correct Citibank does periodical reviews as do some other lenders it is not an enquiry and comes under a different section of your file. I doubt it has any bearing on your score.

Early next year your file will have a lot more info too. Credit card limits, loan repayment history and a record of any missed payments (missed defined as more than 5 days late). This will include for utilities and telcos as well.

I suspect an initial period of drama as otherwise "clean" deals / applicants get declined due to a patchy history of paying bills a bit late.

Will this include incidents prior to next year or will they start collecting the data from next year onwards?