hi everyone,
I am interested in buy-and-hold at the moment, and a good credit file would help.
Problem is, I am 23, and been out of the country since I was 18. I think I may have a few unpaid bills listed in there from back then…
So I was wondering how people go about improving credit files in australia. In the US it seems a popular topic.Is there also maybe information somewhere about the credit files in general? I mean like how long the entries are valid, etc…
I have already contacgted baycorp advantage for my file, and they said they would send, but after 3 times asking them and applying for it, no go. No file. They keep telling me to send my address and personal details and it will go out the same day. Anyone had this trouble? I am in europe right now, but the woman on the phone said it makes no difference.
Daniel Lewis
Hi Daniel,
My understanding of the credit file is that it is a record of the past 5 years of credit activity or defaults. As you have been OS for those five years your file is no longer there. Good news if there were defaults but not so good from the point of view that you don’t have a “good” credit history either.
When I see a that there is no file on someone residing in Australia it says to me that they are at least careful about taking on debts.
Hope this helps
Rod
Hi Daniel,
Not sure if this helps or not but my hubby paid $20 to Baycorp for his personal credit file history and he received it the next day express post. It’s also a tax deduction so maybe it’s not worth waiting the 10 days for the free copy. He also gets a credit alert which informs him who and when someone has checked his file.
Cheers
Soosh
It’s all our imperfections that make us perfect!
Thanks Rod and Sooshie!
I called Baycorp again, got put on hold for 15 minutes (“hey, no problem, I’ll wait, I am on calling Sydney from GERMANY.”)
Anyway, the woman on the phone looked up what the reason for the delay was, and told me it had been sent the day before.
Hopefully it actually arrives here…. Hehehe
—Aside from that, does anyone know a good basic strategy for improving the file? I could take on small amounts of credit, repay, and do it again and again I guess… But I think it needs to be from companies who subscribe to baycorp, am I right? Otherwise they can’t make entries in my file…
Do we also have a credit score like FICO? If so, what is it called here and how is it calculated?
Thanks again!
Daniel
Hi Daniel, Check out the book ‘Building Wealth’ by Russ Whitney, it has some good ideas which Im currently using to make my credit base rock solid. I guess Im in a similar position to you where Im working like mad to lay the ‘foundations’. Hope this helps.
CheersNicholas Donovan.
BayCorp give you a score based on how many times more likely than the average person you are to default or not default. It’s based on a range of factors, but any blemishes on your recent credit history will damage it an incredible amount.
They don’t seem to take into account too much that you eventually fixed up a bill – it will show on the credit report that you fixed it up, but it won’t change their calculations of your risk score very much (although it obviously looks better to someone viewing the entire report).
My suggestions would be to either:
1. Speak to mortgage brokers – it’s in their interest to help you get a loan and make your credit look as strong as possible (ethically and legally).
2. If your last default or minor problem on the credit file was almost 5 years ago, just wait it out a couple of months until the whole lot disappears completely.
There is also a service available through BayCorp where you can subscribe to be e-mailed whenever anybody marks your credit report in any way (including just viewing it). I’ve found this comes in quite handy myself. I don’t believe you get to see the risk score they give you, though.
Good luck,
Marcus.
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