A credit reporting agency in Australia is a credit reporting body that collects credit information and produces consumer credit reports and scores. Lenders use these reports when assessing home-loan applications. Australia has two consumer credit reporting bodies, Equifax and Experian.
For brokers, the report's contents matter more than a score shown in a consumer app. Check both files with the client's consent before lodging if a default, conflicting details or recent enquiries need investigation.
Overview of Credit Reporting Agencies
Credit reporting bodies collect information from credit providers and other permitted sources. A report shows the client's borrowing history, while a bureau score summarises risk using that body's scoring model.
What Information Do They Collect?
An Australian consumer credit file can contain the following information:
- Identity details, including the client's name, date of birth and addresses.
- Credit accounts under comprehensive credit reporting, including account types, limits and opening or closing details.
- Repayment history, including whether repayments were made on time.
- Defaults, bankruptcies and certain court judgments.
- Credit enquiries from applications for finance.
The OAIC's explanation of a credit report describes these records and the laws governing them.
How Do They Use Your Information?
Equifax's consumer score runs from 0 to 1200. Experian also publishes a consumer score range of 0 to 1200. Scores from different bodies remain different measures because their information and calculations can differ.
A higher bureau score does not override failed serviceability or the lender's lending policy. Read more about how lenders use credit scores in mortgage decisions.
Credit Reporting Bodies Used in Australia
Equifax and Experian are the two consumer credit reporting bodies Australian brokers need to recognise. The OAIC's credit-report access guidance lists their consumer contact numbers:
CreditSmart explains that illion and Experian operate as one Experian credit reporting body. The combined report includes information previously held by illion. Our illion guide explains what the name means for brokers.
For an Equifax vs Experian comparison, compare the entries on each report before comparing scores. Both bodies produce Australian consumer reports, but their records and scoring models can differ. A higher number from one body does not prove that the other report is wrong.
The best credit reporting agency for checking a disputed listing is the body holding that listing. Get both reports when preparing a home-loan application with credit-file concerns. The lender determines which body it uses for its assessment, so choosing the report with the higher score will not control the result.
A claim about the most-used credit reporting agency does not identify which report a particular lender will obtain. Use the lender’s application requirements to identify the relevant report, and investigate any differences between the two files before lodging.
TransUnion is an overseas credit bureau, outside the two Australian consumer credit reporting bodies used for home-loan files.
Specialised Consumer Reporting Companies
US reporters such as ChexSystems and Innovis play no part in Australian home-loan credit files.
How Credit Reporting Agencies Work
Credit providers send account and repayment information to credit reporting bodies. Applications also generate credit enquiries, and permitted public records can appear on the file.
Before a broker checks a client's file, obtain the client's consent and use the licensee's approved connection. Follow the licensee's authority and access process. A personal login is not a substitute for that process.
Calculating Credit Scores
Each body applies its own model to the information it holds. Repayment history, credit limits and enquiries can affect the result. US FICO weightings do not describe Equifax's or Experian's Australian scoring models.
Identify which body produced the score before comparing results. A score alone cannot tell you whether the lender will approve the application.
Keeping Your Credit Report Up-to-Date
Reports reflect the information held when they are produced. A recent payment or correction might not appear on an older copy. Paying a debt also does not automatically erase its history.
Get a fresh report before disputing an assessment with the lender's business development manager (BDM). Compare the actual listing with the client's evidence instead of relying on a stale consumer-app screenshot.
Your Client’s Rights Under Australian Law
Australian Law: The Privacy Act and the Credit Reporting Code
Part IIIA of the Privacy Act 1988 and the Privacy (Credit Reporting) Code govern Australian consumer credit reporting. The Office of the Australian Information Commissioner (OAIC) regulates privacy and credit reporting.
Your Client’s Rights
Clients have the following rights under Australian credit reporting rules:
- A free consumer report from each body every three months.
- An extra free copy after a credit refusal within the past 90 days or after their credit-related information is corrected.
- Access to the information on their credit file.
- The right to dispute incorrect or incomplete information and request a correction without a fee.
Clients can ask the credit provider or a credit reporting body to investigate a correction. An unresolved credit-reporting complaint can be escalated to the OAIC after the organisation has had an opportunity to respond.
Who Can Look at Your Credit Report?
Access requires a permitted purpose and a recipient allowed under Australian credit reporting law. Consent is required for specified purposes and for a broker acting on the client's authority. Consent alone does not give every organisation access.
Credit providers can access reports for permitted activities such as assessing a credit application. Brokers must use their approved access process and obtain client consent before checking a file.
The OAIC's third-party access rules exclude landlords, real estate agents and employers from obtaining consumer reports directly from a credit reporting body. General insurers are also excluded, with exceptions for mortgage and trade insurers.
Tenant screening, employment checks and other insurance checks use different information and rules. Do not confuse those checks with access to a home-loan bureau file.
How Reporting Errors Change a Home Loan Assessment
A wrong default or duplicated enquiry can change the lender's assessment grade and the price available to the client. Correct a genuine reporting error before lodging the application.
For example, a client's report might show a default for someone with a similar name. Compare the account details with the client's identity and records. Request correction with supporting evidence, then obtain a fresh report showing the outcome before lodging.
A duplicated enquiry needs the same investigation. Multiple genuine applications and one application recorded twice are different problems. Correcting an error gives the lender an accurate file, but does not guarantee approval or a particular rate.
Taking Action: What You Can Do
How to Get Your Credit Reports
- Ask the client to request their free Equifax consumer report through Equifax's consumer service.
- Obtain the Experian report too. Each body can hold different information, so compare the listings across both copies.
- If a broker check is needed, record consent and use the licensee's approved connection.
- Compare identity details, accounts and enquiries with the client's records. Mark any listing that needs investigation before proceeding.
Steps to Dispute Errors
- Identify the exact entry and explain why it is wrong. Keep a copy of the report and supporting records.
- Send a correction request to the credit provider or credit reporting body. Keep the reference number and correspondence.
- Record the response deadline. The OAIC says corrections must be made within 30 days, or a longer period agreed with the client, when the information is found incorrect.
- Request a fresh report after correction. Confirm that the disputed listing now shows the agreed outcome.
- If the response does not resolve the complaint, follow the organisation's complaint process and escalate to the OAIC when appropriate.
The OAIC's correction guidance explains the process and the requirement to give reasons when a correction is refused. US agencies such as the CFPB and FTC cannot fix an Australian Equifax or Experian file.
Check Both Credit Reports Before You Lodge
Check Equifax and Experian with the client's consent before lodging when credit-file concerns could affect the application. Resolve genuine errors and keep the updated report with the application evidence.
Stop and correct any application guidance that relies on FICO 300 to 850, AnnualCreditReport.com, the CFPB or a TransUnion home-loan check. Use the Australian report and the lender's assessment requirements for the file you are lodging.
