Understanding Credit Reporting.

What is credit reporting?

What is credit reporting?

Comprehensive credit reporting (CCR) is a system where credit providers such as ME securely share information about their customer’s credit history with authorised credit reporting bodies (CRBs). This information is then used to create an individual's credit report and credit score, which is used by credit providers to determine a borrower’s creditworthiness when they apply for credit.

What’s a

What’s a

Credit Reporting Body

A credit reporting body (CRB), or credit bureau, is an organisation that manages personal information and credit data from credit providers, as well as public and private sources, to create credit reports on individuals. Governed by the Office of the Australian Information Commissioner (OAIC) via the Privacy Act, CRBs such as Equifax, illion, and Experian aid credit providers in determining creditworthiness and whether to provide credit to a borrower.

Credit Provider

A credit provider is an organisation that offers credit to consumers. This includes banks, credit unions, utility and telecommunication providers, and other financial institutions that provide loans, credit cards, and other forms of credit.

Credit Report

Created by a credit reporting body, a credit report records your credit history – including how many times you applied for credit, which loans were opened, your credit score (or credit rating), your history of making repayments (repayment history information), defaults and how much you have in debt. You have a right to a free credit report every three months from each of the CRBs. Checking it regularly and fixing any errors helps keep your financial reputation undamaged. 

Credit Score (or Credit Rating)

A credit score is a number that summarises the information in your credit report to indicate how likely you are to repay debts. It reflects your creditworthiness by evaluating your payment history and debt levels and comparing them to other borrowers. It tells you in a single number (typically between 0-1000, or sometimes 0-1200) what your credit report says about your management of existing credit. Please refer to each credit reporting body’s website for an explanation of what is a good credit score.
 

What does credit reporting mean for ME?

What does credit reporting mean for ME?

How is my credit information used?

When you apply for credit, we’ll request your credit file from one or more credit reporting bodies. This makes up part of our credit assessment where we decide whether to give you credit. The information helps us to assess creditworthiness, lend responsibly, and help manage your account.

Be rewarded for making payments on time.

As we share your credit information and repayment behaviour to CRBs monthly, how you manage your money (such as making repayments on time) can influence your credit score and future lending applications.

Your rights to your credit data.

You can contact us to access your credit information, and you have the right to contact us at any time to address incorrect information. Amending incorrect information is free of charge.

Telephone: 13 15 63  Monday to Friday 8am – 8pm AEDT and Saturday 9am – 5pm AEDT, excluding public holidays.
Email: privacy@mebank.com.au
Post: The Privacy Officer – ME
GPO Box 1345
Melbourne VIC 3001

If the information pertains to another credit provider, it’s faster to contact them or a CRB directly.

Your privacy matters.

We respect your privacy and handle your personal information with care. Our privacy policy outlines our management of personal information and credit reporting information, how we protect your data and your rights under the law.

Direct marketing.

All credit providers can ask credit reporting bodies to use the information they hold about you for pre-screening assessments. If you don’t want credit reporting bodies to use your information this way, you can ask them not to by contacting them directly.

Victim of fraud.

If you believe you’ve been a victim of fraud (someone is using your information to apply for credit), or don’t recognise transactions on your accounts, contact us immediately. You can ask the credit reporting bodies to place a credit ban** on your credit file, which means credit providers won’t be able to access your information, which should stop a fraudulent loan application. When requesting a ban with one credit reporting body, you can also ask the credit reporting body to arrange a ban with the other two credit reporting bodies. You can learn more about this on CreditSmart.

**Ban notification service.

A free service offered by credit reporting bodies where they’ll notify you if a request is made for your credit reporting information from a credit provider, mortgage insurer, or trade insurer during a ban period.

Tips for a healthy credit report and how to improve your credit score.

Tips for a healthy credit report and how to improve your credit score.

Keeping your credit report healthy is important for maintaining a good credit score. Here are some tips:

Make repayments on time.

Overdue payments can negatively impact your credit report and credit score. Talk to your credit provider about setting up an automatic payment, i.e. direct debit, to make sure your minimum payments are paid on time. While forgetting one payment shouldn't impact your credit report too much, it can make you look bad to credit providers if you fall behind regularly. Even with missed payments, you can improve your credit score by regularly paying on time. Be wary of companies offering a quick fix.

Check your credit report regularly.

Ensure all information is accurate and up to date. If other people try to use your information for financial gain, reviewing your credit report can alert you to potential identity theft. The Australian Government has a great resource here.

Limit credit enquiries.

Only apply for credit when necessary. Applying for credit at several credit providers in a brief period is a red flag to credit providers.

Stay within your credit limits.

Maxing out your credit cards can negatively affect your credit score.

Only keep credit you need.

Having multiple credit cards for emergencies impacts your borrowing capacity and could impact your credit score. It’s also worth checking that credit accounts you’ve previously closed are listed as closed on your credit report.

Understand credit reporting and money management.

The Credit Smart website is an excellent resource for understanding credit reporting. You can also visit the Office of the Australian Information Commissioner (OAIC) at www.oaic.gov.au. The MoneySmart website at https://moneysmart.gov.au/ has some great resources for helping Australians take control of their money with free tools, tips and guidance.

By following these tips, you’ll be able to maintain good credit habits and keep your credit report healthy. It can also help you improve your credit score to get better credit terms and allow credit providers to make more informed decisions when assessing your credit applications.

How to access your free credit report.

How to access your free credit report.

You’re entitled to a free credit report every three months from credit reporting bodies like Equifax, illion, and Experian. You can also request a free copy if:

• you were declined credit within the past 90 days, or
• a correction to your credit-related personal information has been made.

Your credit report shows the information that credit providers see when they check your credit report. Each CRB has their own credit reporting format and different methods for calculating your credit score. Accessing your credit report is easy and can be done online. Refer below for CRB contact details.

Difficulty making payments or need support?

Missed or Late payments.

If you have missed or overdue payments this negatively impacts your credit score and is reflected in your credit report repayment history. We recommend you make your repayments on time as your credit report includes a 24-month history of your repayments.

Financial hardship assistance.

If your financial situation has changed and you’re worried you won’t be able to make your repayments on time, it’s important you contact us straight away. We treat sensitive information about your circumstances with the highest degree of confidentiality, security and care.

We understand there are many reasons you could find yourself struggling to meet your repayments, including losing your job, accident, illness, relationship breakdown, a rise in cost of living, or other unexpected events. Our hardship team will assess your situation and work out what help is available.

Options can include setting up a payment plan or altering your loan repayments. This is called a financial hardship arrangement and may be temporary (like deferring a payment) or permanent (like varying a loan).

How your credit report is affected by a financial hardship arrangement:

If you meet the terms of the financial hardship arrangement, your credit report won’t show any missed payments.

Your credit report will show a note (financial hardship indicator) that you have a hardship arrangement in place. The note:

• does not show why you’re having trouble paying or the details of the arrangement
• will not affect your credit score
• cannot be the sole reason for credit denial if applying for future credit, and
• comes off your credit report 12 months after the arrangement ends. 

For future credit applications, your lender might have more questions for you to verify the situation and recovery.

See CreditSmart’s financial hardship hub for more details.

How to apply.

If you have concerns regarding payment difficulties or enquiries about your credit report, our friendly team is here to help. Contact us for support and guidance on 13 15 63 Monday to Friday 8am – 8pm AEDT and Saturday 9am – 5pm AEDT, excluding public holidays or visit our Financial difficulty assistance page for more details.

Quick links

• Privacy Policy
• Financial Difficulty Assistance
• CreditSmart.org.au
• MoneySmart.gov.au
• OAIC.gov.au
• Australian Government's Guide on Identity Theft