Lenders exchange information with credit reporting agencies (in Australia this is Veda Advantage, formerly Baycorp Advantage) so that there is one database that allows them to see what recent loans you have taken out, information on any bankruptcies or court judgements, and any defaults with previous lenders. Whenever you apply for a loan you will be asked to sign a consent enabling the lenders to perform a credit check on your past borrowing history.

An adverse credit history could prohibit you from further borrowings, or in some cases increase the interest rate that you will have to pay on the loan. This will have a significant impact on your future wealth, or opportunity to create wealth by borrowing for assets such as property.

We urge you to treat this aspect of borrowing with great importance because of the possible impact on your future lifestyle.

It is important that you ensure that all loan repayments are made on time, as any defaults over 60 days may be recorded on your credit history. We recommend that you check your credit history periodically. If you would like to do this on line, go to www.mycreditfile.com.au. If you find any item that is incorrect we strongly urge you to contact the lender and arrange to have the error corrected as soon as possible. In extreme cases you should seek legal advice.