Can you remove a credit enquiry from my file
In short, no - a legitimate credit enquiry stays on your credit file because it’s a lawful and accurate record of a credit application you authorised. Read on for more information.
When you apply for a loan or finance in Australia, the lender will usually check your credit report. This check is called a credit enquiry (see HERE for more details). Even if your application is declined, a legitimate credit enquiry cannot be removed from your credit file as it is illegal for us to do so.
Here’s why.
YOU GAVE YOUR PERMISSION
Under Australian law, lenders are only permitted to access your credit report with your approval. When you submit a loan or finance application, you give the lender permission to make the inquiry. Since you have provided this consent, the inquiry is legally valid.
CREDIT REPORTS MUST CONTAIN ACCURATE INFORMATION
Credit reporting bodies (such as Equifax, Experian and illion) are required under the Privacy Act 1988 and the Credit Reporting Privacy Code to keep information that is accurate and factual.
A credit enquiry is a true record that:
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You applied for credit
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The lender accessed your credit file
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The enquiry occurred on a specific date
Whether the loan was approved or declined does not change these facts.
WHAT IF I WAS DECLINED CREDIT
An enquiry remains valid even without approval. It simply records the application itself, not the outcome. That's why you'll see it stay on your file, even if the finance isn't approved.
HOW LONG DOES IT STAY ON MY CREDIT FILE
All credit enquiries remain on your credit report for 5 years.
DO CREDIT ENQUIRIES HURT MY CREDIT SCORE
Generally, a single enquiry doesn't make much difference. However, issues can crop up when there are:
• Multiple enquiries in a short period
• Several applications that get declined
• Early signs of credit stress
WHAT IF I DIDN'T APPLY FOR THIS CREDIT
Everything above applies to an enquiry you authorised. If you've found an enquiry from us that you don't recognise, or that you believe was made without your permission, that's a different situation — and we want to know about it.
Please lodge a complaint using our online complaint form located HERE, and select Credit reporting/credit enquiry as the reason. Tell us which enquiry you're disputing and why you believe it shouldn't be there. We'll investigate and correct your credit file if the enquiry was recorded in error.
HOW TO CHECK OR CORRECT YOUR CREDIT FILE
Your credit file is held by credit reporting bodies, not by us. In Australia these are Equifax, Experian and illion. You're entitled to a free copy of your credit report every three months, and also within 90 days of being declined credit.
You can also ask a credit reporting body to investigate and correct information on your file directly, free of charge. Equifax accepts correction requests through its Corrections Portal at equifax.com.au/personal/corrections-portal. Experian and illion have equivalent processes on their websites.
IF YOU'RE NOT SATISFIED
If you've raised a credit reporting concern with us and you're unhappy with our response, you can refer the matter to the Australian Financial Complaints Authority at afca.org.au or on 1800 931 678.
You can also complain to the Office of the Australian Information Commissioner, the privacy regulator, at oaic.gov.au. The OAIC generally expects you to raise the matter with us or the credit reporting body first, and to allow 30 days for a response.