How to read your own credit file as a sole trader

If you work for yourself, your credit file is not a separate matter from your business. A sole trader and their business are the same legal person, so the personal file that tells a lender how you handle a phone plan also tells them how you handle the business. That is why it is worth reading it before anyone else does.

This guide walks through a credit report as it would appear to an assessor, explains what each part means for a tradie, and shows how to deal with anything that looks wrong.

Why does your personal file matter when you run a business?

Because for sole traders there is no wall between the two. Lenders will usually look at your personal file, and if you run a company, directors who give a personal guarantee get the same treatment. Commercial credit information on businesses and ABNs also exists, but the personal file is often the first thing opened.

For you, that means a missed phone bill from two years ago and a late supplier payment last month sit on the same record in effect. It is not unfair, but it does mean tidying one helps the other.

How do you get your credit report?

You are entitled to free reports from each of the major credit reporting bodies. There are three main ones in Australia, and each may hold slightly different information, so it is worth checking all of them.

1. Go to each bureau’s own website, or the list on MoneySmart, and choose the free report option.
2. Verify your identity. Have your licence, an address history and your ABN handy.
3. Expect to wait a few days for it to arrive, though some are instant.
4. Save the reports as PDFs and note the date.

Avoid sites that charge for something you can get free, or that ask for payment to “fix” your file. Requesting your own report is recorded as a personal access, which is different from an enquiry by a lender and does not count against you.

What are the sections of a credit report?

Reports differ in layout, but they cover the same ground.

Section	What it shows	What to look for
Identity details	Name, date of birth, addresses, employer	Anything wrong or unfamiliar, such as old addresses you never lived at
Credit accounts	Loans, cards, buy-now-pay-later, utilities and phones	Accounts you do not recognise or that are open but unused
Repayment history	Whether recent repayments were on time	Months marked late that you believe were paid
Defaults	Overdue debts listed after significant arrears	Amount, date and whether it shows as paid
Enquiries	Times lenders checked your file	A cluster of applications in a short time
Score	A summary number from the bureau	The band, rather than the exact number

Each bureau uses its own scoring scale, so a number from one cannot be compared directly with a number from another. Treat the score as a rough band, and read the underlying detail.

How long do things stay on your file?

Listings are not forever, and knowing the clock helps you plan. As a rough guide, defaults typically remain for five years, credit enquiries for around three years and repayment history for two years. Different types of information and special situations have their own rules, so check the current periods on the OAIC and the bureau websites before relying on them.

The practical point is that old marks do fade. A default from several years ago that has been paid carries less weight than a recent unpaid one, and a run of clean months after a rough patch counts for a lot.

What counts as a default, and what does it mean for a tradie?

A default is generally listed when a debt is well overdue, the amount is above the minimum threshold, and the credit provider has sent the required notices. For a tradie, they often come from:

• Phone and internet plans on the owner’s name.
• Credit card or personal loan arrears during a lean stretch.
• Equipment or supplier accounts that went unpaid.
• Old business debts that were personally guaranteed.

An illustrative example: a plumber had a quiet winter and let a store card slide, which defaulted. Eighteen months later he has paid it, and it shows as paid. A lender reading the file sees an old, settled debt followed by a clean run, and that is a very different story to a recent, unpaid default. Our hub on bad credit finance for tradies explains how lenders weigh these situations.

What do enquiries say about you?

Every time you apply for credit, the lender records an enquiry. One or two spread across a year is normal. A burst of five or six in a fortnight reads as someone shopping around under pressure, and some assessors weigh that.

That is why careful applying matters. Ask what is possible before submitting formal applications, and avoid sending applications to many places at once. Our own enquiry does not run a credit check when you first ask, which is the point: you can see where you stand without adding a mark.

How do you fix something that is wrong?

Errors happen, from mistaken identity to accounts that were paid but still show as overdue. The usual path:

1. Gather evidence. Statements, receipts, correspondence showing payment or the error.
2. Contact the credit provider that listed the information and ask them to correct it.
3. Contact the credit reporting body to lodge a correction request and let them investigate.
4. Keep records of dates and reference numbers.
5. Follow up if you have not heard back within the stated timeframe.

None of this requires a paid service. A short, factual email with attachments does the job in most cases. If a legitimate default is on the file, you cannot remove it, but you can make sure it shows as paid once it is, and you can build a clean record on top of it.

Does insolvency or a past arrangement show up?

Yes, formal events such as bankruptcy or a debt agreement appear on the file for a set period, and they carry weight with lenders. They do not automatically close every door, particularly when the event is well in the past and the file since then is clean. If this applies to you, it helps to know the dates and be ready to explain what happened and what has changed in the business. Our hub on bad credit finance covers how these situations are approached case by case.

What about buy-now-pay-later and small accounts?

Newer forms of credit, including buy-now-pay-later and small phone or utility accounts, can appear in your report, and their repayment patterns count. A string of small accounts that are always paid on time is neutral to positive. A string that is regularly late tells an assessor something about how stretched you are, even if the amounts are small. If you use these services for work purchases, make sure the business is genuinely covering them.

What can you do in 90 days to improve it?

Credit health is mostly about steady habits, and three months of them make a visible difference.

• Pay every bill on time, and set up direct debits for the small ones that are easy to forget.
• Clear small overdue balances before they escalate.
• Avoid new credit applications unless you actually need them.
• Reduce utilisation on cards where you can.
• Keep business and personal spending apart, which also helps your bank statements.

Then run the loan readiness checklist to see what else to line up. If you are not sure where you land, it is fine to ask what is possible first.

Where do you go from here?

Once you have read your file, you know more than most applicants. If the news is good, the next step is easy. If the news is mixed, you now have a list to work through and a sense of how a lender will read you.

Either way, we are happy to have a look. The form takes about a minute, and there is no credit check when you enquire, so your file stays as it is. Your details are not sent to a pile of lenders; a real person reads your situation and calls you with an honest view. And we ask you to fill the form in accurately, including anything on your credit file you are unsure about, so we can match you to the right option the first time.

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