How to Get Your Credit Report in Australia

There are 3 major credit bureaus in the US (Equifax, Experian and TransUnion), but they have a centralized credit report request website AnnualCreditReport.com where consumers can order a free copy of their personal credit report every year.

Australia also has 3 major credit reporting agencies (Veda Advantage, Dun & Bradstreet, and Tasmanian Collection Service), but, unlike in the US, you will have to contact each agency and ask for your credit report (or credit file).

How do I get my credit report in Australia?
Veda Advantage and Dun & Bradstreet will send your credit report free of charge within a couple of weeks of your request. If you pay a fee, they'll speed up processing - but it's an unnecessary expense for most people. For those in Tasmania, the Tasmanian Collection Service appears to charge a fee for their credit report unless your request relates to a refusal of credit or the management of your credit arrangements.

To get your credit report, you will need to write to:

Veda Advantage Public Access
PO Box 964, North Sydney, NSW 2059.
Phone: 1300-762-207.
Fax: (02) 9951-7880.
Email: assist.au@vedaadvantage.com
** Check their website for a list of information you need to include in your letter or fax **

Dun & Bradstreet (Australia)
Public Access Centre, PO Box 7405, St Kilda Road, VIC 3004.
Phone: 132-333.
Fax: (03) 9828-3447.
Email: customerservice@dnb.com.au
** You will need to send this application form to the above address. **

Tasmanian Collection Service
GPO Box 814H, Hobart, TAS 7001.
Phone: (03) 6213-5555.
Fax: (03) 6234-2988.
Email: enquiries@tascol.com.au
** Their website says that you will need to include any applicable fee and a copy of an acceptable photo ID **

Why should I check my credit report?
You should check your credit report to make sure that all information in the report are accurate. You should notify your credit provider and the credit reporting agencies if there are any mistakes. Those mistakes may negatively impact your credit score, which may increase your credit interest rates and the probability that you will be denied credit in the future!

There is also the growing problem of identity theft, both in Australia and around the world. If you see any unauthorized use of your credit in your credit report, you might be a victim of identity theft. So check your credit report regularly and protect your financial identity.

Resources: Government

• Office of the Privacy Commissioner: How do I get a copy of my credit report?
• ASIC: FIDO: About financial products: Your credit report.

Resources: Frequently Asked Questions (FAQ)

• Veda Advantage: Frequently Asked Questions.
• Dun & Bradstreet: Frequently Asked Questions - Credit Risk.
• Yahoo!7 Finance: Personal Finance: Credit Reports: Frequently Asked Questions.

Security Analysis: Chapter 5: Classification of Securities

Please join me at the Security Analysis Book Club to read Security Analysis by Graham & Dodd, a must-read for anyone who is serious about value investing.

Chapter 5: Classification of Securities.

Securities are customarily divided into the two main groups of bonds and stocks, with the latter subdivided into preferred stocks and common stocks.

Graham opposed the traditional classification of securities because:

1. Preferred stocks are often bought with the purpose of fixed income and safety of principal, which is more closely resembles the purpose of bond investors.
2. Bond form is associated with safety - even though the safety depends on the debtor corporation's ability to meet its obligations, rather than the legal protection offered by the bond form.
3. The proliferation of securities with features that deviate from the standard patterns.

Graham proposed a new classification method as follows:

1. Securities of the fixed-value type. (e.g. A high-grade bond or preferred stock.)
2. Senior securities of the variable-value type.
1. Well-protected issues with profit possibilities. (e.g. A high-grade convertible bond.)
   
2. Inadequately protected issues. (e.g. A lower-grade bond or preferred stock.)
   
3. Common-stock type. (e.g. A common stock.)

Graham's proposed classification does not depend on the legal form of the security, but, rather, the characteristic of the security.

Securities of the fixed-value type are high-grade bonds or preferred stocks that are expected to maintain their principal value.

Senior securities of the variable-value type is divided into two sub-types. Well-protected issues with profit possibilities can include a high-grade convertible bond or preferred stock. It can also be a high-grade straight bond that has been priced irrationally low by the market, where the investor will expect to make a profit on capital gains. Inadequately protected issues include lower-grade bonds and preferred stock, where the value may rise or fall depending on the financial status of the corporation.

Common-stock type securities include not only common stocks, but senior securities that exhibit common-stock type characteristics. A senior convertible bond selling at 200 would qualify in that you may reasonably suffer capital loss, but may also expect gains from the convertible feature is the company does exceptionally well.

I think Graham's goal is not just for us to reclassify securities, but rather to think about the characteristics of the security and not to make assumptions about the security's characteristics based on its name and legal form.