Veda Advantage Limited is a credit reporting agency and is the major supplier of credit information products in both Australia and New Zealand.

They supply information to banks and other credit providers about consumers credit history and business dealings and are not limited to home loans and credit cards. In fact they can provide a range of information that can clarify the possible debt position of a business or an individual consumer.

As a company, they are governed by the Privacy Act and must protect the privacy of all consumers at all times.

What Does Veda Advantage Do?

Veda Advantage is like a central recording and reporting agency that collects information about your credit history.

Every time you make an application for credit, like a home loan, a credit card, a new mobile phone payment plan, or even an electricity account, the enquiry you make is listed with Veda Advantage.

They record the date of the application (called an enquiry), the amount of credit applied for if known, who the application was made with and the type of credit. The ‘type’ means either a specific loan like a personal loan or a home loan or ‘continuing credit’ like a credit card or a line of credit.

There is no detail about whether or not your application was successful or whether you accepted the offer of credit. So, it does show an accurate picture of your current credit position, only a general history.

In fact some people like to apply for a lot of credit at different places without taking up all the offers they receive. In the end though, lenders will still know about the enquiries and may ask some questions, as we will see shortly.

Veda Advantage also records other information like the results of court actions taken out against you. This means that Judgements or Bankruptcies or similar credit defaults will also be visible to lenders.

As well as keeping information about every Australian consumer’s credit history, Veda Advantage also keeps records in respect of insurance claims. Insurance companies use this information in the same way that lenders do, so when you make application for an insurance policy they will probably have a complete record of any claims you have made in the last five years.

Veda Advantage also keeps your credit file up-to-date in respect of company directorships and associated commercial business activity. This means if you apply to become a director of a company it will be recorded for lenders to see.

They also maintain a REV’s database. This database contains information about any financial encumbrances launched on vehicles in Australia. Simply put, this means that if you have a car loan or lease on your vehicle, this database will record the details so that future purchases will be made aware of the need to pay this out before they can obtain clear title to the vehicle.

All information obtained and maintained by Veda Advantage is completely live. This means that if you make an electronic application for credit of any type, it is recorded immediately and is available online to any lender who makes an enquiry about your history.

Although some consumers are concerned about their rights to privacy and the fact that the records held by Veda Advantage could be compromised, the flip side of the coin is that you can subscribe to a service that lets you every time a change is made to your credit file. This gives you extra protection when it comes to identity fraud because you will always be made aware of an enquiry being made in your name.

You will receive an immediate alert by an SMS or e-mail message depending upon how you choose to be told every time an enquiry or change is made to your credit file.

You can subscribe to the service or order a copy of your credit file here.

What Happens When I Apply For Credit and Why Does Veda Advantage Have to Know?

To get a better picture of exactly how they operate and how your private information is used, let’s take a close look at what happens when you apply for credit.

Let’s say you apply for a home loan. Whether you do this online, at the local branch of your bank or through a mortgage broker, you will need to complete an application form. Contained within the form you will find a declaration about your privacy and a request for the bank or lender to make an enquiry about your credit history. Unless you sign this part of the application the bank will not proceed any further.

Once you have signed they will immediately record the fact that you have made the application and seek a copy of your credit file from Veda Advantage.

By examining your credit report a lender can obtain a clearer picture as to whether or not you will be a satisfactory risk. This becomes the first part of assessing your application and if there is any indication of a problem, such as court judgements, bankruptcies or credit defaults then it is likely that the lender will decline your application immediately.

In some cases, they may advise you that they are unable to proceed with your application because of a negative element in your credit file. If it is a minor matter such as a late payment on a phone account, you may be given the opportunity to explain the situation before they make their final decision.

In some cases, consumers only discover the credit problem when they make an application. If you are able to give a satisfactory explanation and/or rectify the problem immediately, the lender may decide to take your application to the next stage.

As we mentioned earlier there is no record as to whether or not you accepting any previous offers of credit, but if there are a lot of enquiries on your credit file and you have not made any mention of existing liabilities in your application form, a lender will be inclined to ask you about your previous enquiries and clarify whether or not your full list of liabilities has been disclosed to them.

In other words, lenders become suspicious of applicants who have a history of applying for credit and become concerned that you may already have other liabilities which will impact upon your ability to make the repayments on the loan you are currently applying for.

In some cases, they may decide to decline your application purely because you have an active credit file. You can easily understand how your credit worthiness can be evaluated simply by looking at your credit file. That’s why banks heavily rely upon your credit report in making an initial assessment of your application.

What about my privacy?

Veda Advantage is governed by strict government legislation which guarantees your privacy at all times. To date, there is no evidence of any breaches in respect of consumer’s privacy. On the contrary. As mentioned previously, Veda Advantage acts as an agent in protecting your credit file and also safeguarding against identity fraud.

Veda Advantage provides a valuable service to lenders and consumers alike so that applications for credit can be assessed with a greater degree of certainty and confidence.

If you ever have any problems with your credit file or you think that your privacy has been breached in any way, Veda Advantage has a comprehensive resolution process that can clear up any problems quickly and safely.

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