Your credit file is more than just a piece of paperwork—it’s a key factor in your financial health. Whether you’re applying for a loan, a credit card, or even a rental property, your credit file can make or break your chances. But what if there’s a mistake on your report? Errors like a debt you don’t owe, a payment incorrectly marked as overdue, or accounts created through identity theft can damage your credit rating. The good news? You have the power to fix it.
Here’s your step-by-step guide to tackling errors on your credit file and taking control of your financial future.
Step 1: Check your credit report.
Start by obtaining a copy of your credit report from one of Australia’s major credit reporting agencies, such as Equifax or Experian. You’re entitled to one free report each year or whenever a credit application is denied.
Carefully review your report and look out for:
- Debts or defaults that don’t belong to you.
- Incorrect personal information (e.g., your name or address).
- Loans or accounts you didn’t apply for.
- Payments marked as late or missed that you actually made on time.
You can request your free credit report from:
Step 2: Identify the error and gather evidence.
If you spot an error, take note of what’s wrong and start collecting evidence to back up your claim. This could include:
- Payment receipts or bank statements that prove the debt was settled.
- Copies of emails or letters exchanged with the creditor.
- Official notices or documents highlighting discrepancies.
Having solid documentation will strengthen your case and speed up the resolution process.
Step 3: Dispute the error.
Armed with your evidence, it’s time to dispute the error. Start by contacting the credit reporting agency or the lender directly. Use these links to access their dispute resolution services:
If you’re disputing directly with the lender, visit their website for details on their internal dispute resolution process. When lodging your dispute, explain the issue clearly, attach your evidence, and formally request a correction. Keep in mind that resolving disputes can be a lengthy process, generally taking up to 30 days.
Step 4: Escalate if necessary.
If the credit reporting agency or lender doesn’t resolve your issue, don’t worry—you can escalate your case to the Australian Financial Complaints Authority (AFCA). AFCA provides a free, impartial service to help resolve disputes.
Contact details for AFCA:
- Phone: 1300 565 562 (local call cost) or 03 9613 6399
- Post: Australian Financial Complaints Authority, GPO Box 3, Melbourne VIC 3001
- Website: www.afca.org.au
Additional considerations for credit repair.
Be cautious of credit repair companies that charge high fees for services you can handle yourself for free. The money you save could go towards a deposit for your next home or car.
For more advice on fixing credit errors, read MoneySmart’s guide on credit repair.
Tips for preventing credit file errors.
- Regularly check your credit report for inaccuracies.
- Keep records of all financial transactions and communications with creditors.
- Use free tools from credit reporting agencies to track changes to your credit file.
Loan Hive is here to help.
At Loan Hive, we understand how vital a healthy credit file is when applying for loans. That’s why we offer free credit repair assistance exclusively to our clients, helping them identify and correct any errors on their credit report.