In my past lives I’ve worked through a company for business and income. This had its benefits, however today my income is PAYE and I need to buy a family home. Much to my surprise I found that my Veda Credit store was AVG to below AVG. Part of the reason was that I never have taken out a loan in my name, only credit cards. Everything was always put through the business.
This is the story of trying to get my Veda Credit Score up to a above average level. Hopefully this will help others understand the Australian Financial System.
Get a copy of the reports Veda and D and B:
Both are FREE, don’t let the evil marketing side of the business make you pay. They already get income from the financial institutions who use and share your data.
I found MAJOR problems with my D and B report. Another person and their debts were attached to my name. Seriously, the names, addresses and states did not match, I have no idea how I was linked to the other person.
VEDA had a few weird entries that I tried to correct without success. Wasn’t happy. But now I know they are on the report and can clarify should it come up.
Lessoned Learned from the above:
- Be very careful who you give access to, for the file. Lets say you are a business person and you look around for a loan or credit card. You do your due diligence and talk to 3 banks to see what they can do. Then you choose the best offer. Well the financial guys seem to not like this and behind the scenes will make your credit look awful after by giving the appearance you are desperate and getting knocked back from each lender. The report doesn’t state that you decided not to go ahead with the loan. So this will adversely cause the credit score to go down.
- Get your credit reports every year for free or immediately after/if you have been knocked back for a loan. Check them. As these guys do not check what is added, its all computer done, and if something bad is added, the electronic systems will not ask you, are these 5 credit cards overdrawn on your account yours? The automation loan systems will simply say declined.
Step 2: Monitor the score Monthly:
Its free, however you only get a number. Based on an algorithm that I can’t find. Below is my regularly updated score:
2017-06: 645 Good – ? I’m trying to close a Credit Card (60 seconds to sign up, 3 months to close. %^@@&# Banks) so this may have made a difference. Will request a credit report.
2017-03: 610 Average – Still same.
2017-02: 610 Average – interesting.
2016-12: 610 Average – I took an offer to increase a CC limit. To see if this would make a difference. No change. So its only new applications, not increases? or it might depend on the untrustworthy Credit Card company.
2016-11: 610 Average – Up 9 points. Time based from last loan/CC application?
2016-10: 601 Average – Why the change? No idea. In March I’ll request my file next year and see what happened.
2016-08: 588 Average
2016-07: 588 Average
2016-06: 588 Average
2016-06: Applied and funded loan through Society One. Interest and Loan Application was very High. I honestly wouldn’t have taken it normally, however I saw this as more of a down payment to get gain a credit score for a housing loan.
2016-05: 582 Average
2016-04: 582 Average
2016-04: Fixed credit reports with d and b.
2016-03: 559 Average
2016-03: Knocked back on a personal Loan. Much to my surprise. This started the fact finding process.
Step 3: Get a Loan to pay off.
This might sound counter intuitive. But giving the financial institutions money helps your credit score. As long as you pay the debt off, of course. So take out a loan that you can afford, use the cash on something that will return income or lower other debt. This is my experiment. So far it has increased my credit score, see Step 2. It will be interesting to see the credit score once the loan is 100% paid back and closed.
I strongly recommend Society One. They are transparent about the process and detail what is happening behind the scenes.. I doubt I would have discovered the problems and fixed them by going to a Bank.
Loan I received was 15.37 % p.a with a $950 establishment fee. Massive costs. However I hope that the results will allow cheaper loans in the future and pay back this high investment.