In Australia, three credit reporting agencies collect information on financial transactions to come up with the credit scores of the people carrying out these transactions.
The agencies are bound by comprehensive credit reporting regulations, meaning that both transactions that lift or lower an individual's score are reported.
Among these credit reporting agencies is Equifax, which bought out credit information provider Veda. If your credit report is available with Equifax, you can request a copy of this report at no charge once every three months or if you have been denied credit or need to correct information on your report.
How to get your Equifax credit score report
You can get your credit report copy by placing an online request or contacting Equifax over the phone at 138 332. The credit report may only list the factors or incidents affecting your score without actually mentioning your credit score. Equifax also offers an online dashboard, which you can use to check your credit score and understand what the score means - as an alternative to requesting a credit report. You can also visit RateCity's credit score hub to check multiples scores for free.
Accessing either the dashboard or the credit report requires proof of identity. You can also choose from Equifax’s different paid subscription plans, which may include credit alerts, monthly access to your credit score, and protection from identity theft in addition to your credit report.
Apart from the free quarterly requests, you can only get access to your credit report at no cost if:
- You applied for credit, such as a loan or a credit card, in the last three months, and your application was rejected, or;
- You asked Equifax to fix details mentioned incompletely or inaccurately in your credit report and received an update that it has been corrected.
At other times, Equifax - as a private entity - charges to prepare a credit report.
How does Equifax calculate your credit score?
Equifax collects information about your credit activities from lenders, credit card companies, or utility providers to calculate your credit score. An algorithm is used to process this information. If you have never applied for any kind of credit, you may not have a credit score. But once you get an electricity connection or a credit card, Equifax starts compiling your credit history.
The information and incidents that Equifax uses to calculate your credit score include:
- The kind of credit you’ve applied for and the level of associated risk
- The size of the loan or the credit limit available on your credit card
- The frequency of your credit applications - for instance, applying for several loans in a short time can affect your credit score negatively
- Any history of defaulting on bill payments or loan repayments or filing for bankruptcy
- The number of years for which Equifax has been collecting information about you
- Your personal information, such as your income and your residential address
Typically, when you apply for credit, the lender or credit issuing company sends a request to Equifax or another credit reporting bureau for your credit report, which also affects your credit score. If you don’t make too many or too frequent requests and have enough income to make timely repayments, your credit score may not be negatively affected. Also, your credit report can tell you about the incidents which have a positive impact. You can then try to improve your credit score by accumulating more of these events.
