Checking your credit report after a decline

Why your credit report is the first place to look

Credit files drive a large share of business loan declines, directly or indirectly. Even when the lender cites something else, your file often contains the clue. And sometimes it contains something you didn’t know about at all: an old utility default, a judgment from a dispute you thought was settled, or a listing that belongs to someone else.

Checking it costs nothing and doesn’t affect your credit score. It’s one of the most useful things you can do in the days after a decline.

Where to get it

Australia has several credit reporting bodies. The main ones are Equifax, Experian and illion. Each keeps its own file on you, and they don’t always hold the same information, because not every lender reports to every bureau.

You’re entitled to a free copy of your credit report from each of them every three months, and also within 90 days of being refused credit. Request through each bureau’s website, and make sure you choose the free option rather than a paid subscription. Our step-by-step guide to getting your free credit report covers the process.

If you have a company, its commercial credit file is separate. Lenders often check it alongside directors’ personal files.

What to look for

Section	What it shows	Why it matters
Personal details	Name, addresses, licence, employer	Wrong details can mean mixed files
Credit enquiries	Applications, lender, amount, date	Clusters worry lenders
Repayment history	Monthly on-time or late status on some accounts	Patterns of lateness matter
Defaults	Overdue debts listed by providers	Often a knock-out at banks
Court judgments	Creditors who obtained judgment	Seen as serious
Insolvency	Bankruptcy, debt agreements, personal insolvency agreements	Policy-sensitive for many lenders
Credit score	A summary number from that bureau	Each bureau calculates differently

Go line by line. Ask yourself: is every entry mine? Is every date and amount right? Is anything paid that still shows as outstanding?

How to fix errors

If something is wrong:

1. Contact the credit provider that listed it, or the credit reporting body, and ask for a correction.
2. Provide evidence, such as proof of payment or identity documents.
3. Keep records of who you spoke to and when.
4. If it isn’t resolved, you can escalate to the relevant external dispute resolution scheme, and then to the Office of the Australian Information Commissioner.

Correcting genuine errors is free. Be wary of companies charging to “repair” credit; they can’t lawfully remove accurate information, and they can only do what you can do yourself.

What to do with accurate negative information

If a listing is correct, the next step is context:

• Pay it, if it’s still outstanding and it’s sensible to do so, and make sure it’s updated to paid.
• Write a short explanation, factual and calm. Our page on defaults and judgments shows how lenders read them.
• Choose a lender whose policy fits, rather than one whose rules will knock you out again.

Once you know what’s on your file, you’re in a much stronger position. Tell us what you found and we’ll explain which lenders tend to be comfortable with it.

Don’t forget the enquiries

Count the enquiries from the last few months. If there are several, that may be part of why you were declined. See our page on too many credit enquiries for what to do.

Illustrative example: A florist checked all three credit reports after a decline. One bureau showed a default for a gym membership in another person’s name with a similar date of birth. She provided ID to the bureau, the listing was removed, and her next application was approved.

A simple checklist for each report

Use this list as you go through each bureau’s report:

1. Is my name spelled correctly, with any former names listed accurately?
2. Is my date of birth correct?
3. Are all the addresses ones I’ve actually lived at?
4. Do I recognise every credit enquiry, and do the dates make sense?
5. Are all open accounts mine, and are closed accounts shown as closed?
6. Are any repayment-history entries showing late payments I don’t recognise?
7. Is every default mine, with the right amount and date?
8. Are paid defaults marked as paid?
9. Are any judgments or insolvency records accurate?
10. Does anything appear on one bureau’s report but not the others?

Mark anything questionable and deal with it before applying again.

Keeping an eye on your file from here

Once you’ve cleaned up your report, it’s worth checking again before any significant application. Diarise a free check every few months while you’re working towards finance. Watch especially for new enquiries you didn’t make, which can be an early sign of identity misuse, and for listings that should have been updated to paid but weren’t.

Key terms on a credit report

• Credit enquiry: a record that you applied for credit.
• Default: an overdue consumer debt reported by a credit provider.
• Repayment history information: whether monthly repayments on some accounts were made on time.
• Court judgment: a court order that a debt is owed.
• Serious credit infringement: a listing for suspected fraud or deliberately avoiding a debt.
• Credit score: a number each bureau calculates from the information on your file.

Know your file, then take the next step

Once you’ve seen what lenders see, you can choose the right next move. Sending us an enquiry doesn’t run a credit check, and we won’t circulate your details among a group of lenders. A real person reads what you’ve found and calls you. Please be specific on the form about any listings, as that helps us choose a lender whose policy suits you. See if you qualify.