If you pay your credit card or loan repayments more than 14 days past the due date this can be recorded on your credit report as part of your repayment history information as a late payment. Only licensed credit providers such as banks and financial institutions are able to disclose repayment history information to a credit reporting body like Equifax. Telco and utility companies are not licensed credit providers and cannot supply or receive this information.
However, a default can be recorded on your credit report by any credit provider (including telco and utility companies) if you miss a payment which is more than $150 and is more than 60 days overdue. Before listing a default the credit provider must have taken steps to collect the whole or part of the outstanding debt. This means they have sent you are written notice setting out the amount overdue and seeking payment and a separate written notice advising you that the debt may be reported to a credit reporting body. A default remains on your credit report for five years.
If you pay your credit card or loan repayments more than 14 days past the due date this can be recorded on your credit report as part of your repayment history information as a late payment. It is unlikely one late payment, depending upon how late the payment was, followed by making your repayments on time, will significantly impact your credit worthiness, however, a number of late payments could be an indication you are in financial stress and may negatively impact your credit report. This repayment history information is recorded on your credit report for a period of two years.
To try and prevent this, pay bills on time, set up direct debits to pay your minimum credit card balance and schedule loan repayments for your pay day. Talk to your credit provider straight away if you are having trouble meeting your repayments – they may have procedures in place to help borrowers experiencing financial hardship.
If you are struggling with debt ASIC MoneySmart also provides more information about managing debt.
If you are finding it difficult to get credit, think twice before paying for the services of a company that claims they can "repair" your credit report/history. Some companies claim to be able to remove negative information from your credit report and charge you to do so. This can often cost over $1,000.
If you have inaccurate information on your credit report you can lodge a correction request with the relevant credit provider or credit reporting body and they will investigate for free and correct the information if it is inaccurate.
Equifax will not remove information from credit reports unless that information is erroneous. The fact that information is inaccurate or wrong does not mean it must be deleted. If it can be corrected, it will be corrected but not deleted.
If there is information on your credit report that needs correcting please go to personal credit repair or business credit repair.
The first thing to do is to report the problem. If you believe that someone may have used your identity details to fraudulently obtain credit you should take the following steps and act immediately:
- Request a copy of your credit report to check that the information relates to applications for credit that you have in fact made.
- Contact any credit providers listed on your credit file to whom you have not applied for credit so that they can investigate and take appropriate and prompt action
- Contact Equifax (and other credit reporting bodies) to put a ban on your consumer credit information. The initial ban period is for 21 days and can be extended. This can help prevent fraudulent accounts being opened in your name. The ban period means that if a credit provider requests your credit report as part of an assessment of a credit application Equifax cannot share it unless you have provided written consent or if it is required by law. You can find out how to put a ban on your credit report here.
- Contact the police and report the crime
When dealing with a possible identity theft it is important to keep records of the conversations you have and keep notes, including:
- name/s of the individual
- contact number
- the date you spoke to an organisation
- details of the conversation.
You should also ask questions to the people you speak to so you can understand the process. Each credit provider may have their own processes for handling fraud. Note these requirements so you can comply.
Your records are investigated. The credit provider(s) will then conduct their own investigations and notify us of the outcome. We can then remove any fraudulent information from your credit record.
You can also put a ban on your Equifax consumer credit report. The initial ban period is for 21 days and can be extended. This can help prevent fraudulent accounts being opened in your name. The ban period means that if a credit provider requests your credit report as part of an assessment of a credit application Equifax cannot share it unless you have provided written consent or if it is required by law.
To help reduce the chances of credit fraud happening to you, follow these simple steps:
- know what is on your credit file - Order your Equifax credit report
- Use My Credit Alert to monitor your Equifax credit report so that you receive e-mail notification every time a credit application is made using your personal details
- sign all your new credit cards as soon as you receive them
- store your cards and personal ID items in a secure place
- shred any paperwork that contains your personal details or account details before throwing it away
- contact your financial institution immediately if your cards are lost or stolen
- keep your PIN confidential and separate from your card
If you have reasonable grounds to believe you have been or are likely to be victim of fraud, you can request a ban on the disclosure of your credit information to be put in place.
When Equifax receives and actions such a request, the ban extends not only to personal credit information but also to any commercial credit or publicly available information Equifax holds.
Whilst a ban is in force, credit providers cannot see information on your personal, public or commercial credit report without your specific written permission.
Find out more on what to do if your identity has been stolen.