2 October 2013
The decision by Veda Advantage to offer credit scores to Australian consumers previously reserved for lenders has been welcomed by a consumer advocate for accurate credit reporting – as long as Veda clearly outlines how the score is calculated.
CEO of MyCRA Credit Rating Repair, Graham Doessel says in general consumers have been kept in the dark about how to best actively manage their credit worthiness.
“I believe every credit active individual has the right to know what their credit score is, but with that, they also need to know how that score is arrived at to positively manage their own credit decisions,” Mr Doessel says.
He says people believe if they pay all of their bills on time, their credit score will be high, but this is not always the case.
“There are a range of factors that go into the score calculation – and it has all been a bit of a mystery to consumers really which is not ideal,” he says.
Mr Doessel says largely consumers don’t even know they have a credit score.
“Most times it’s only when their credit score is lower than it should be to obtain finance with a lender that consumers even know they have been rated with a number attached to their approvability,” he says.
Veda Advantage’s Marketing Manager Belinda Diprose told Banking Day yesterday there was a low level of consumer awareness about credit reporting, with as much as eighty per cent of people having never checked their credit report.