How Do Australian Banks Check Credit Rating?

TimApple on 09/05/2016 - 14:47
Last edited 09/05/2016 - 15:35 by 1 other user

I've recently applied for a new credit card online. The questions they asked online are pretty much: What's your address and how much do you earn. They don't even ask what other banks I'm banking with.

Then the next day, I got an SMS saying I got pre approved and just need to confirm a few details and I needed to call a number. I called the number, and all he asked was my Medicare number and whether I am an Australian permanent resident. That's it.

I remembered on my first credit card application, I had to send them a copy of bank statement from another bank, photocopy of my passport, and even my pay checks for the past 3 months.

My question is: how is it that they don't need any of those now? Is it because I have a good credit rating linked to my name or Medicare number or my email address? This scares me a bit, because it looks like the only non public information they gathered from me are just my Medicare ID and my address (and I don't think they even check if I really live there).

Financial

Comments

  • Settero on 09/05/2016 - 15:56
    +1

    once you build up a credit history they require less information as they can get your information from companies like VEDA

  • OzPunter on 09/05/2016 - 17:07

    Adding my 2c to what Settero has already said…Banks contact different credit rating agencies like VEDA,Dun and BradStreet,Equifax to fetch your credit score.If you are new to this country then these agencies return a default score based on which banks decide the fate your CC application.You can track your credit score for free of cost using CreditSavvy

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