credit report payment history question

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Forums › Finance and wealth management › credit report payment history question

grasshoper

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#185329 18-Nov-2015 14:25

Hey guys,

I have a couple of credit cards that are not being reported on my credit report that I just obtained through Veda. The problem is that my score is low because I have a lot of 'requests' but no repayment history, even though I have had multiple loans they have not been reported on my credit score.

Any idea?

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#1430617 18-Nov-2015 20:03

Sounds like you don't borrow much, or any, money.

Do you want to borrow money?

If my credit cards weren't on VEDA I'd not see that as a problem. IIRC, they only get there if there has been a problem.

When you apply for a loan, they typically ask about existing debt. If you have two cards to no or low debt balances, that won't be a problem.

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Kyanar

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#1430680 18-Nov-2015 21:10

Linuxluver: Sounds like you don't borrow much, or any, money.

Do you want to borrow money?

If my credit cards weren't on VEDA I'd not see that as a problem. IIRC, they only get there if there has been a problem.

When you apply for a loan, they typically ask about existing debt. If you have two cards to no or low debt balances, that won't be a problem.

While previously correct, this is no longer the case. Both NZ and Australia now use "comprehensive credit reporting" where credit providers and utility providers have the ability to report payment history (i.e. late payments as well as defaults) and the amount of credit extended. Thanks to the new "positive" reporting system, actually paying on time does impact your credit score, and not having any credit actually does hurt your score. Basically, getting a home loan when you've never even had a credit card can be next to impossible.

myfullflavour

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#1430734 18-Nov-2015 22:17

Positive reporting has had little to no impact in NZ so far.

At our office I oversee the Veda checks we do on prospective customers and haven't come across any positive reporting - low/negative scores appear to result from a large number of credit enquiries or defaults lodged from either the retailer directly or the collection agency.

Geese

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#1430873 19-Nov-2015 08:15

Kyanar: Thanks to the new "positive" reporting system, actually paying on time does impact your credit score, and not having any credit actually does hurt your score.

When did this change occur? I've got a few Veda file printouts here and used to be a negative reporting system, which sucked as someone like me with exemplary credit history who has never been a day late let alone missed a payment, had a score of 300 out of 1000.

Kyanar

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#1430920 19-Nov-2015 09:00

Geese:

When did this change occur? I've got a few Veda file printouts here and used to be a negative reporting system, which sucked as someone like me with exemplary credit history who has never been a day late let alone missed a payment, had a score of 300 out of 1000.

2012. Here's the update.

Geese

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#1430937 19-Nov-2015 09:28

Kyanar: 2012. Here's the update.

Excellent thank you. I was battling ~2009/2010, explains why things have come right now, even though my patterns have not changed.

Aredwood

3885 posts

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#1431370 19-Nov-2015 20:08

grasshoper: Hey guys,

I have a couple of credit cards that are not being reported on my credit report that I just obtained through Veda. The problem is that my score is low because I have a lot of 'requests' but no repayment history, even though I have had multiple loans they have not been reported on my credit score.

Any idea?

How long have you had those cards for? As anything older than 5 years (or is it 7 years?). Will drop off the report.

Im guessing the places you have got the loans from don't have systems in place to report positive data. Or they date back to before the positive reporting changes were introduced.

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grasshoper

164 posts

Master Geek

#1432808 22-Nov-2015 19:01

Interesting..

Basically I have a home loan, three credit cards, and a old car loan that was paid in full years ago. Problem is my Veda raiting is 400/1000 (less then 50% of NZ aparently) because I have 15 enquiries in the last three years.

I have never missed a payment, yet have a bad credit score because none of the finance company reported positive results to Veda, therefore, anyone doing a credit check on me thinks i'm a bad bet because all they see is 15 credit enquiries...

Seems like a very terrible system we use to calculate credit scores...

Aredwood

3885 posts

Uber Geek

#1432848 22-Nov-2015 19:29

Wait, If you haven't taken out any new credit recently. Why do you have 15 enquiries? Have you applied for credit at 15 different banks, finance companies ect? In otherwords are all those enquiries meant to be there? Has someone tried to steal your ID?

But yes under the old system. Your credit report would basicly just contain enquiries, any defaults, any court judgements. There was no way for someone reading the report to tell what the result of those enquiries was. (Approved and loan drawn down then fully repaid, Approved and loan drawn down but repayments still ongoing, Approved but loan never drawn down, Finance declined, or any other possible option)

It also makes a difference who the enquiries are from. The ones from power companies and ISPs don't matter so much. But if definitely looks bad if they are from 2nd and 3rd tier finance companies.

Have you tried asking the home loan provider and credit card companies why they are not reporting positive data? (Im guessing the home loan and cards are still active)

grasshoper

164 posts

Master Geek

#1432895 22-Nov-2015 20:40

15 enquiries because when I was looking at a home loan a while back, I looked around for who could give me the best interets rate. Obviously at the time I didnt know it would effect my raiting. They were all "approved but not taken" but the report wont show that as you say, so as far as any finance company is concerned, I'm a bad risk. Even though I've never missed a payment and have a lot of equity on my property.

I asked anz (whom i have a home loan with) why they dont report positive data and they said they only report payment defaults, not positive data, thats there 'policy' aparently. The credit cards are still active - American Express and ANZ platinum dont report anything to the credit reporting companies, unless I start missing payments.

Aredwood: Wait, If you haven't taken out any new credit recently. Why do you have 15 enquiries? Have you applied for credit at 15 different banks, finance companies ect? In otherwords are all those enquiries meant to be there? Has someone tried to steal your ID?

But yes under the old system. Your credit report would basicly just contain enquiries, any defaults, any court judgements. There was no way for someone reading the report to tell what the result of those enquiries was. (Approved and loan drawn down then fully repaid, Approved and loan drawn down but repayments still ongoing, Approved but loan never drawn down, Finance declined, or any other possible option)

It also makes a difference who the enquiries are from. The ones from power companies and ISPs don't matter so much. But if definitely looks bad if they are from 2nd and 3rd tier finance companies.

Have you tried asking the home loan provider and credit card companies why they are not reporting positive data? (Im guessing the home loan and cards are still active)

wsnz

649 posts

Ultimate Geek

#1432896 22-Nov-2015 20:40

Perhaps I'd actually check my credit record if Veda, D&B etc. didn't use the "identity verification" section of the application form as a method for gathering additional information about me that they didn't already have, for the free report they're required by law to provide me.

Kyanar

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#1432985 23-Nov-2015 02:06

wsnz: Perhaps I'd actually check my credit record if Veda, D&B etc. didn't use the "identity verification" section of the application form as a method for gathering additional information about me that they didn't already have, for the free report they're required by law to provide me.

Such as what? Any information they collect in there is already information they have access to, otherwise it'd be useless for identity verification.

Geese

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#1432988 23-Nov-2015 03:03

grasshoper: 15 enquiries because when I was looking at a home loan a while back, I looked around for who could give me the best interets rate. Obviously at the time I didnt know it would effect my raiting. They were all "approved but not taken" but the report wont show that as you say, so as far as any finance company is concerned, I'm a bad risk. Even though I've never missed a payment and have a lot of equity on my property.

Thats how I went wrong years ago. Thought I was doing the smart thing and instead of applying for finance with one place and accepting it blindly, I fired off applications to lots of places to cherry pick best offer.

I should also add, back then (and presumably now?) demographics was also heavily weighted into credit score. So for me at the time, MALE, SINGLE, RENTING, TWENTIES, LOW INCOME, etc, were all "risky" groups and that lowered my score from a statistical standpoint.

wsnz

649 posts

Ultimate Geek

#1440123 3-Dec-2015 19:47

Kyanar:
wsnz: Perhaps I'd actually check my credit record if Veda, D&B etc. didn't use the "identity verification" section of the application form as a method for gathering additional information about me that they didn't already have, for the free report they're required by law to provide me.

Such as what? Any information they collect in there is already information they have access to, otherwise it'd be useless for identity verification.

No, they don't have a complete picture of your profile. You might not have your latest employer listed in their database, when you use that to "identify" yourself and it's not there, that will be added. Have a look at the volume of information that you're now required to provide to identify yourself for the free report vs. what was require prior to that legislative requirement, it's substantially increased.

Kyanar

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#1440230 4-Dec-2015 00:01

wsnz:

No, they don't have a complete picture of your profile. You might not have your latest employer listed in their database, when you use that to "identify" yourself and it's not there, that will be added. Have a look at the volume of information that you're now required to provide to identify yourself for the free report vs. what was require prior to that legislative requirement, it's substantially increased.

Really?

https://forms.mycreditfile.co.nz/mycreditfile/order/step1:

Employment Details:

While the information is mandatory it is not held on the database

Every other detail is stuff that they as a credit reporting agency already know (last creditor, last address, etc).

I don't see substantial information being requested at all. Just a bunch of info they already have. And one additional piece which they disregard (if you've opted out of having your data shared with credit providers for unsolicited offers then it's useless anyway).

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