"I didn't bother to pay the phone bill..."

The start of a relationship is a beautiful thing. You don’t realise it at the time of course. Being too caught up in that relentless and drowning feeling that involves never quite getting enough of each other.  When those feelings subside a little, you start to make plans. You move in to their place. Or they into yours.  In time, you start to think about marriage, babies, a house. Maybe out of order, but it’s all in the plan, somewhere.  This, you two, this is the future.  Everything you’ve done prior to that moment is irrelevant. Except, unfortunately, if you haven’t been careful, it can be anything but.

Take my friend Claire as an example.

Claire and I have been friends for what feels like the term of my natural life. She was there when I had my first ever hangover courtesy of some cheap sparkling wine, she nursed me through my first ever boy induced heartbreak and held my hand at my Mum’s funeral. She really has been there through everything. I, in turn, have watched her live large, hook up with the WORST men on the planet and make poor career decisions – all without any judgement.  But then suddenly Claire got her life together. Without warning, she was with Brian. They were married, they had a baby called Ruby and were about to buy a house together.

That’s about the time Claire rang me in tears.

Claire: We can’t buy the house. The bank rejected us!

Me: Why? You guys earn great money, have a fab deposit, just go somewhere else, you’ll get a loan with another bank.

Claire: We can’t! They’ll all say the same thing. It’s all my fault, I didn’t bother to pay the last phone bill when I lived in Peak Avenue.  Apparently I now can’t get a loan as I’ve ‘got a default on my credit file’. And on top of that, we’ve wasted hundreds of dollars in mortgage application fees!

Me: Well, shit.  That’s not good.

And no, it’s not good.

Little did Claire know that one silly, what seemed inconsequential at the time, that non payment could have such an impact? By choosing not to pay her bill, she has impacted her ability to get credit for the next five years.

Here she was, mother and wife, letting down the two people that mattered to her most because of something she just ‘let slip’.

How has a mistake that you have made in the past impacted you?

Does this scenario sound familiar to you? Make it a thing of the past with Veda, Australia’s longest standing credit bureau, which helps Aussies manage their credit information file effectively.

As Claire’s story demonstrates, it’s important to manage your personal credit information file as an adult because it can help you make more informed decisions regarding your finances. Just as you would a budget or your personal finances – its part of being financially savvy.

Whilst some credit lenders may look at unpaid debts unfavourably, a variety of credit related information is assessed when you apply for credit. Each lender has their own criteria for approving applications, but it is worth noting that a credit default will stay on your credit information file for five years.

It’s important that you pay debts on time and reduce the amount owing on your credit card(s) as often as possible. By signing up for My Veda Alert on www.mycreditfile.com.au, you will receive an alert each time certain changes are made to your credit information file e.g. you apply for a new line of credit or a new default is listed.  This helps you to proactively manage your personal credit finance and may reduce the risk of being denied credit like Claire.

Special Offer for Mamamia Readers: Veda are offering 30% off the standard retail price of the MyVedaAlert. Click here to find out more.

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