You may or may not have heard of the Veda Group. If you are paying attention to the credit industry, you have definitely heard of them. If you haven’t, you will be hearing about them soon. The Veda Group is listed on the stock market as a billion dollar company that has only one “asset”—your financial details.
Who is Veda Group?
Veda Group is a credit reporting agency. Veda Group has lobbied hard against the current privacy legislation, but it isn’t because they want to invade your private life. Instead, they want to change the part of the legislation that currently bans credit reporting agencies from putting positive credit information on your credit report.
As the law sits now, credit agencies are only allowed to add negative events, such as judgements, bankruptcy, bills not paid within 60 days, outstanding credit and applications for credit. This has turned credit reports into a grossly unfair misrepresentation of many Australians’ finances.
Thanks in no small part to Veda Group, credit reporting agencies will be able to add positive information to your credit report in March. This will put a lot of the formerly negative information in context, turning it benign or positive. Banks will be able to give you lower rates on a home loan if they like what they see. Of course, the other side to the equation is that they will also be able to charge you more for a home loan if there isn’t enough positive information.
Credit scores in Australia range from minus-200 to 1,200. Currently, around 20% of Australians know their credit scores. We think that will change shortly when the new rules go into effect.
Simple Steps to Raising Your Credit Score
Don’t apply for a lot of loans—too many loan applications lower your credit score. If you apply for a loan from a low-class lender, that will also lower your score.
Another tip: always pay your bills on time. If you haven’t done so in the past, it’s never too late to start.
Also, avoid taking out extra loans thinking they will improve your credit.
The last tip: hire a good mortgage broker who will treat your credit right and not flood your report with loan applications.
These four small steps can make a big difference in your credit score.
Call (08) 9472 9766 today if you’re interested in getting a home loan or if you want to talk to a financial planner in Perth.