Time is money, right? So, check important credit files first

There are two credit files in Australia in your client’s name that you need to be on top of before putting in a loan application. The first is an Equifax (formerly, Veda) credit file. This is the credit file that lenders always look at when they are working out whether to give your client credit or a service. 

The second is a Dun & Bradstreet credit file. Often lenders will also check this credit file to see if it is clear of overdue accounts and court actions. 

These credit files don’t always have the same information on them, so it’s vital to check both before putting in a loan application for your client. 

For example, there may be a default listing on the Equifax file, and a serious credit infringement for the same debt on the Dun & Bradstreet file. Exactly the scenario we encountered with a client last week. 

Or your client may have the same default or court action on each file. Or they may have a problem on one file and not on the other. That’s why it’s vital to access both credit files to understand what’s going on, and what can be done to fix it. 

Both credit files will have to be clear of black marks before you can be certain that your client will be approved for finance. Particularly if you are applying for the best interest rate loan. 

After assessing credit files for nine years, for brokers, and consumers, we understand that the secret to finance approvals is understanding both credit files, and keeping them in tiptop shape.

Knowledge is power, right? So before spending time preparing a loan application, do these checks first.

To help you with this, we offer a nifty service where for $150, we order copies of both credit files and assess them, so your client knows everything that is stopping them being approved. 

Your client does not need to despair if we discover a default or court action on their credit files. There is help available to remove these incorrect listings. And we offer $100 off our full credit repair service fees, if they have used our $150 service.

Once your client's file is cleared of black marks, their credit score will climb higher, making it easier for them to get low interest finance approved.

Therefore, the most important step you can take to ensure your client’s financial freedom is to make sure they understand their credit files before putting in a loan application.

Dr Merrilyn Mansfield has been a consumer advocate at Princeville Credit Advocates since 2008. At Princeville, she heads the advocacy team, and works on complex cases for consumers and companies who have negative, and potentially incorrect, information on their credit files. Dr Merrilyn is in her final year of Law.

To contact Merrilyn please call 1300 93 63 63.