Credit Rating Defaults
In Australia we have two Major credit reporting agencies, Veda Advantage and Dunn & Bradstreet. In short, the collection and maintenance of data which these companies perform is governed under one set of rules. That is to say for example, a court judgement will remain on file for the same length of time with both organisations. It does not vary.
The same applies to defaults, bankruptcies, applications and other listings.
As a rule of thumb payment defaults or overdue listings remain for five years from the original listing date. This cannot be extended. Serious credit infringements or clear-outs remain for seven years from original listing date. Bankruptcy listings remain for seven years from when the term of bankruptcy commenced. Credit applications remain for five years from the application date.
If a default is listed (five years) and is later upgraded to a clear-out (seven year), the term on file is still only five years. The term is always based on the original listing type and date. A five year listing does not turn into a seven year listing. Some will tell you that can happen, especially agencies trying to collect money out of you. It is called coercion and against the law.
When you perform a credit check and obtain your Veda file assessment file from us we provide a professional assessment which identifies any of these type of listings. You are also free to call and discuss any aspect you are unsure of.
Know where you stand with your credit rating status and get your credit file assessed through our home page or by clicking this link Assess My Credit File