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Frequently Asked Questions
About Credit Files
- What is a credit file?
- Does everyone have a credit file?
- What is on my credit file?
- Who starts my credit file and how?
- Should I have a copy of my credit file?
- How do I get my credit file?
- Why was I declined credit?
Need Help Understanding Your Credit File?
- How long is the information held in my credit file?
- What do I do if the information on my credit file is incorrect or needs to be updated?
- How long does it take for information on my file to be updated?
Payment Defaults (Overdue Accounts)
Credit Fraud
- What is credit fraud?
- What should I do if someone has used my identity to obtain credit?
- Can I protect myself against credit fraud?
About Credit Providers
- Do all credit providers that I make applications to check my file?
- Is a credit check related to the amount I want to borrow?
- Is the credit provider the only person to add information to my file?
General Information
A credit file is simply a report that records information (credit, identity and public) that is of relevance for credit assessment purposes including:
- Who you have applied to for credit (banks, utilities such as telephones, finance companies)
- The amount of credit you applied for
- The type/purpose of credit sought (overdraft, interest free, home loan, credit card)
- Records of payment defaults (overdue accounts) (if any)
- Court judgments (if any)
- Bankruptcy listings (if any)
- Collection Agency defaults (if any)
- Collections data (if any)
- Records of any ID you have reported lost or stolen.
Does everyone have a credit file?
No. Only people who are, or have been, credit active in the last seven years will have a credit file.
Information about you and your credit history including:
- Full name
- Last reported and previous addresses
- Date of birth
- Occupation
- Employer
- Company directorships (if any)
- Who has made credit enquiries and when
- Records of payment defaults (overdue accounts)
(if any) - District and High Court judgments (if any)
- Bankruptcy listings (if any)
- Records of any ID you have reported lost or stolen
- Collections data (if any)
- Collection Agency defaults (if any).
Who starts my credit file and how?
Your credit file is initiated by the credit provider the first time you apply for credit. It may also contain information we have obtained from public authorities, eg. company officer information, bankruptcy or a court judgement. The credit provider inputs information directly into the Veda Advantage database including your:
- Name
- Gender
- Date of birth
- Current and previous residential address
- Type of credit applied for (optional)
- Amount of credit requested (optional).
Once your initial credit file is set up, subsequent credit providers (subscribers) update your file by adding the relevant credit applications (enquiry) details and any change of address information.
Should I have a copy of my credit file?
Yes, for a number of very good reasons.
- Banks, retailers and credit providers rely on your file when deciding whether to lend you money or not
- Your credit file is about you and your reputation as a borrower so you should know exactly what it contains
- Credit fraud is a growing issue all over the world. If you do not check your file you will not know if someone is using your identity to borrow money - until it is too late.
How do I get a copy of my credit file?
My Credit File Express - Your credit file will be dispatched to you via post or fax within one working day.
My Credit File - Your credit file will be dispatched to you via post within ten working days free of charge.
The decision to decline your application for credit is made by the credit provider not Veda Advantage. The first step in identifying why you were refused credit is to look at a copy of your credit file. You may discover:
- You have payment defaults or collections (overdue accounts) you had forgotten about
- The information on your credit file is incorrect
- Someone has been using your identity to obtain credit fraudulently and has defaulted on the payments.
It is also important to understand that a credit provider may decline an application for credit even if payment defaults or collections (overdue accounts), court judgments or bankruptcy information on a file show that they have been paid in full or settled.
Credit providers each have their own lending criteria. They will attach varying degrees of importance to the information provided in the credit file and that which they obtain from you, depending on the amount of risk they wish to take when deciding whether or not to approve credit.
How long does it take for information on my file to be updated?
The amount of time taken to update information on your credit file can vary.
If a credit provider is updating an entry they have placed on your credit file, the maximum delay will be five working days from the time they notify Veda Advantage of the required update. Depending on the method used by the credit provider, the update may be completed much more quickly.
If you need Veda Advantage to update an entry for you, we will need you to notify us in writing. It is a good idea to also provide us with any documentation that may assist us e.g. proof of payment.
Once we receive your written request, our team will verify the information you have provided to us and then update your credit file accordingly within 20 working days.
How long is the information held in my credit file?
- Payment defaults and collections (overdue accounts) are held on your file for five years
- Bankruptcy notices is held on your file for seven years
- Credit applications and Previous Enquiries are held on your file for five years
- Court judgments are held for five years
- Subject details, which include name, date of birth, gender, and address history, are held for the life of the credit file. This information is used to distinguish the credit file from others held in the database.
NB: Even when a payment default has been brought up to date or paid in full, it will not be removed from your credit file.
All payment defaults remain on file for five years from the date of listing. The fact that an account has become overdue, and then been paid becomes part of your credit history.
What do I do if the information on my credit file is incorrect or needs to be updated?
There are a number of situations that you could wish to rectify:
To request a correction or investigation into the identity content of your credit file
This refers to the "Subject Details" section of your credit file.
Step 1
Prepare your request in writing - you do not need to fill in a form but your written request must provide:
- Your full name and address
- The enquiry number that appears on the top of your credit file
- Full details of the corrections or investigation you are requesting
- Any relevant information and documentation to support your request.
Step 2
Forward the request details from Step 1 to:
Public Access, Information Services & Solutions (NZ)
Veda Advantage (NZ) Limited
Private Bag 92156
Victoria Street
Auckland
To request a correction or investigation into entries recorded on your credit file by a subscriber or collection agent
These entries may appear in the following sections of your credit file:
- Previous enquiry
- Payment defaults
- Collection agency defaults
- Collections data.
Step 1
If: You believe an entry made by a subscriber or collection agent is incorrect, first contact the subscriber or collection agent named on that entry for further information about the accuracy of that entry.
If: You are not satisfied with the response of the subscriber or collection agent and feel your issue is legitimate, make your request for correction or investigation in writing to Veda Advantage. (Refer to steps on how to request a correction or investigation into an entry of public record information)
Step 2
Prepare your written request to Veda Advantage. In addition to these steps:
- Request that Veda Advantage investigate your issue for you
- Write a short explanation of the issue you have in relation to any detail in your credit file
- Please include copies of any relevant documentation that may assist us and the details of any investigation or other steps you may have already carried out in relation to the issue.
If: You believe that information held on your credit file has been caused by another individual fraudulently using your identity details:
- Report the matter to the police
- Report the matter to the fraud department of each of the subscribers involved.
The subscribers can conduct their own investigations and notify Veda Advantage of the outcome. We can then remove any fraudulent information from your credit file.
Important: You must liaise with the appropriate subscribers directly or through your solicitor. A subscriber may hold you responsible for any bad debt incurred if they are not made aware of all relevant circumstances.
To request a correction or investigation into an entry of public record information (e.g. bankruptcy, public notice, court judgment or directorship)
Step 1
Verify the information with the source.
Step 2
Provide satisfactory documentation of the verified information to Veda Advantage, for example, a receipt of payment when a debt has been settled after a court judgment.
Step 3
Upon receipt of the documentation Veda Advantage will amend the entry accordingly.
What is a payment default? (overdue account)
- A payment default (overdue account) usually a debt that is overdue
- Information can be listed on your credit report if:
- the account has been outstanding for 30 days or longer
- credit provider has written the account off
- credit provider has referred the account to a solicitor, collection agency or repossession agency.
- Payment defaults may only be listed once steps have been taken to recover the whole, or any part of the debt owed. The credit provider must have requested the borrower, either in person or in writing, to pay the outstanding amount
- Once the account is paid, or brought up to date the credit provider is obliged by law to amend the credit file to show that the overdue account has been paid. An amended credit report is then forwarded to any credit providers that have processed a report 30 days prior to the update
- Payment defaults (overdue accounts) remain listed on the credit file for five years, unless an investigation proves the account was listed in error
- Potential credit providers may not look favourably on customers with a history of overdue accounts.
One of the most common forms of credit fraud is committed by 'stealing' the identity of another individual. Someone obtains your identity details and uses them to obtain credit for themselves, leaving you with the potential liability for this debt, a damaged credit reputation and the inconvenience of amending your credit file.
What should I do if someone has used my identity to obtain credit?
Credit fraud is a crime. If you believe that information held on your credit file has been caused by another individual fraudulently using your identity details:
- Obtain a copy of your credit file to confirm someone has used your identity
- Contact the police and report the crime
- Contact the credit providers involved and inform them of the fraudulent activity, otherwise they may hold you responsible for any bad debt incurred.
When dealing with credit providers keep notes of all the conversations you have, including names, contact number and the date you spoke. Also ask questions to ensure you understand the process as each credit provider may have their own processes for handling fraud.
The credit providers will then conduct their own investigations and notify Veda Advantage of the outcome. We can then remove any fraudulent information from your credit file.
Can I protect myself against credit fraud?
Yes. To reduce the chances of credit fraud happening to you, follow these simple rules:
- Know what is on your credit file - click here to apply
- Use Veda Advantage's My Credit Alert to monitor your credit file so that you receive e-mail notification every time a credit-related enquiry is made to your personal details. Click here to apply
- Sign all your new credit cards as soon as you receive them
- Store your cards and personal ID items in a secure place
- Shred any paperwork that contains your personal details or account details before throwing it away
- Contact your financial institution immediately if your cards are lost or stolen
- Keep your PIN (Personal Identification Number) confidential and separate from your card
- Don't disclose your personal identification information to anyone.
Do all credit provider that I make applications to check my file?
No. However, most credit providers considering applications for credit, or the supply of goods and services where payment is deferred, choose to do so to ensure their decision to approve or decline an applicant is sound.
It makes good sense that understanding an applicant's past credit activities, gives credit providers a better assessment of the potential level of risk involved in approving an application for credit.
Is a credit check related to the amount I want to borrow?
No. There is no dollar limit that triggers a credit file check. In fact applications for services such as mobile phones may even appear as zero, because the amount of the applicants' potential monthly bill is unknown.
Is the credit provider the only person to add information to my file?
No. Veda Advantage also sources information on public record including:
- Bankruptcy notices from the Mercantile Gazette
- Judgments from Courts around New Zealand
- Directorship information from the Companies Office.
Veda Advantage Ltd is a credit reporting agency, and New Zealand's leading provider of credit reporting information, with our activities as a credit reporting agency being regulated by the Privacy Act 1993. Our operations started in 1971 in New Zealand, and we were once known as Baynet. Everyday we process over 13,000 reports for our customers helping them to make the right decisions.
We offer an internationally competitive range of credit reporting services and work with our customers to assist them in making better informed credit decisions.
The foundation of our services is our database, New Zealand's biggest and most comprehensive source of credit data and business information. It includes records on the credit activity of New Zealand individuals and companies.
The credit data we hold is continually updated as a result of clients enquiries and data feeds from public sources. It includes credit enquiries, default reports and available court judgments, bankruptcy information, as well as information on directorships of companies.
It is our objective to keep our database as accurate and up-to-date as possible so that our subscribers can make informed decisions based on reliable information.
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