Credit History

Credit reports might be about to get a whole lot longer – and that’s not a good thing

Completely up to date on your bills? All of your bills? The home loan, personal loan, and the credit cards?

 

You might want to make sure you are.

 

As at yesterday, any time you’re 5 days late on a bill from (any) licensed credit provider you will get a little mark on your credit report which keeps track of your credit history.

 

Every Single Time You’re 5 days late!

 

All of those little black marks will be viewable by any lender to see if you ever try to borrow money again.

 

It gets a little worse – it’s retrospective…. Which means there might be dozens of little black marks being added to your file as we speak – for every time you were late since (wait for it)…. December 2012.

 

Until now, only payments which have been 60 days late have been recorded (as a default), and those will continue to get reported under a special category all of their own – you guessed it, as a “default”. These include utilities and telecommunications companies (luckily though these ones won’t include the 5 day late payment history – yet).

 

You can get a free copy of your credit report from credit agencies (like Dun & Bradstreet), but they take up to 10 days to be available. In the meantime though, make diary notes of those due dates or set up automatic payments, or your credit history file might be about to get a whole lot longer.