How is your VedaScore calculated?
Your credit score is calculated using the information on your credit report and there are a number of factors that take into account your risk as a borrower. These include:
- Type of credit provider. There may be different levels of risk when approaching different lenders. A non-traditional lender may have a different level of risk than a bank or credit union.
- The size of credit requested. Both the type and size of the loan or credit limit you’re requesting can affect your VedaScore. Mortgages have a different level of risk compared to credit cards.
- The number of credit enquiries. Every time you apply for a credit product, the credit provider obtains a copy of your file and the application is noted. If you’ve shopped around for credit and applied at a number of places in one space of time, it flags you as a higher risk. The pattern of credit enquiries over time also affects the level of risk.
- Directorship information. If you’re a director or proprietor, it may impact your VedaScore so it’s important to check both the individual and commercial sections of your credit file.
- Age of credit file. The date your credit file was created. A new file may indicate a different level of risk compared to an older file.
- Personal details. Your VedaScore will consider your age, length of employment and how long you’ve lived at your current address.
- Default information. Any personal or business credit such as overdue debts, serious credit infringements or clearouts could negatively affect your VedaScore.
- Court writs. Default judgements or court writs may convey you as an increased risk and negatively impact your VedaScore.
How do I get a copy of my credit file?
You can receive your credit file from any of the main credit reporting bureaus in Australia.
You can order a free copy once a year and receive it in 10 working days, or you can pay a fee to access it in 24 hours as often as you need to.
Credit reporting agencies can also help you make sense of the information in your credit file and correct personal details that could be entered incorrectly. Should you find any erroneous listings on your credit file, you can request corrections or have notes added to the credit report to better your credit reputation and raise your credit score.