Help! - Information for noobie on getting credit report

At the moment I have a 10k credit card and another 6k credit card, and my wife has a secondary credit card (secondary account to my main 10k credit card) and a 6k credit card, which we always fully pay on time every month (except once about a few months that I forgot and paid as soon I got the late notice). We are going to cancel in next few weeks all our credit cards, as we are planning to buy a house later in the year, and getting rid of all credit cards will help us have a better borrowing capacity (I understand that lenders reduce borrowing capacity by a particular percentage of the maximum credit card limit, even if you pay its balance in full every month).

Also, I would like to check my (as well as have my wife check hers) credit report. I have been doing some research but it seems very confusing an daunting.

In understand that in Australia there are three companies that manage credit reports: Equifax, Illion and Experian. If I want to get a copy of my credit report, should I contact each one of these companies and buy individually from them my credit score report?

On the other hand, I understand that there are also other companies that provide this information: www.getcreditscore.com.au, www.creditsavvy.com.au, www.finder.com.au/credit-score

What is the best way to get my credit reports, from any/all of Equifax/Illion/Experian or from
getcreditscor/creditsavvy/finder?

Is is better to get credit reports now, or after we get rid of our credit cards?

Should we just get a copy of your credit report or instead access my credit file? Will that, in turn affect my credit score?

What do experts property investors in this forum do in regard of their credit reports?

Thanks for your assistance.

 

Talk to a good mortgage broker. Dont diy.

 

Credit rating companies are required to provide you with your credit report for free. They won't make it obvious on their website but somewhere on there you'll find a link to order your free credit report.

 

Creditsavvy.com.au let's you see your credit history without paying money and gives you a score on their own scale. I guess they are monetising your data in exchange.

 

Most banks use Equifax and Illion, generally if your report looks good there then you should be fine.

May I ask how late you are in repaying once you find out it's late ?

 

RE "......Credit rating companies are required to provide you with your credit report for free...."

Once every 12 months? I believe

 

Best bet is to use Equifax free report, but the score usually won't show, just the credit file itself.

My Credit Savvy credit score shows a 200 difference to my Equifax credit score.
Something I think worth doing is signing up to the Equifax Membership, I'm biased as I've had issues with attempted Identity theft in the past, you get alerted to any credit enquiries immediately and this gives you the chance to get on top of it before anything happens.
With the membership you get monthly score updates, to me the data on Equifax seems much more accurate than the other free credit score offerings out there.

I order Credit reports for all my clients, it's a simple Privacy form they need to sign, it gives me their credit score and full credit report via Equifax, so if you've got a broker they may be able to do this for you.

 

In most cases credit scores are not particuaruly relevant. Most people credit scores are good enough that it doesn't really matter. Lenders apply their own weighting to credit report and come up with their own scores and criteria (which they do not publish).

People with low credit scores get loans approved all the time. People with good scores get declined for a hundred other reasons. As already noted, finance is complicated and confusing.

Rather than trying to figure this out yourself, go see a broker.

 

I just paid off a card then applied for another for points. Always obtain a confirmation letter that the account is closed. I found a old car loan (daughter) paid off 18mths ago too. Had to chase a letter for that and ask St George to report it as fully paid. Pretty normal.

I would avoid obtaining a free credit report as they just spam the hell out of you and peddle credit offers etc. They have weaponised when the Govt says they must share with you if requested. Let a broker pull the report as part of their job is to review for any issues.

Credit scores arent always even a thing for lenders. They make their own assessment. Its like agencies are trying to make people use them thinking its gospel.

That subscription to alert you to fraud is 100% lie. I know instances they didnt alert people (one I work with) and all they did is spam the hell out of the people who paid them. One of the providers had to stop offerring it as AFCA found they werent actually offerring what they said. They would tell you up to 6 months after a credit reporting event or not at all. Fat use if they tell you about fraud 6mths later.

 

I always pay out all my credit cards full balances every month. However I did an honest mistake and forgot payment on a credit card due on 13 December last year. I finally realised my error and fully paid out that credit card balance on 19 December (i.e., 6 calendar days after the due day). I also asked the credit card company to do an adjustment late fee ($30), which they agreed and did on 23 December.

Will this show on my credit report? If so, could I do anything abut that?

 

You haven't organised a direct debit because?

 

Due to the short time frame it was overdue it won't show on your credit report.

 

You are right: lesson learned (for the next time I will have again credit card after I close them all soon prior to applying for home loan)

 

Really suggest you find a good mortgage broker to discuss before doing anything.

 

Rolf Latham, although I appreciate your response (as well as the other responses that the members of this forum have the kindness to share their experience and knowledge), please do not take the following comment the wrong way.

When you say "we have scores reduce when some facilities are closed", that simply does not make sense. I have been reading in many threads in this and other forums and other sites that clearly recommend to cancel all credit cards, as (if my memory is right), I understand that the lenders reduce the lending capacity by around 4 times the total credit cards maximum limit (in my case reducing my lending capacity by 64k!).

So I can not grasp how cancelling all my credit cards soon, prior to applying for a home loan will not my best course of action and be instead detrimental for me. What I am missing here?

 

It doesn't always make sense. A lot of things don't.

But disagree with knowledge and experience at your peril. Experienced brokers do this as their day job. You are basing your opinions on memory of posts on anonymous internet forums.
Credit score is not the same as borrowing capacity.
Seriously, dont diy. Go to an experienced broker. Tell them what you are trying to achieve.

How were you planning to apply for a home loan anyway? Ask for the 'best' bank to go with and go direct? Do you know what you are looking for? Offset? Redraw? Bank or securitised lender? First or second or third tier? LVR?

 

SOME credit application ask for XX months of card statements. They look for late payments by referring to closing balance and payment cleared etc. 6 days as a one off shouldnt ring alarm bells. Thats just a review for good standing. The card (or loan) statements are more reliable for them than a credit report only showing defaults.

The assessment for servicing can vary. I once had a client with a AMEX charge card in their own name. They travelled a lot o/seas for work. Card could be $20K a month in some months. Lender still assesssed it on the highest spend month as the card had no limit which was killing their application. I suggested a broker. Broker considered a lender who basically ignored the card when the employer confirmed it was card issued to the employee in their name but was really the employer liability and no personal spending was allowed. Made a huge difference.