We Don’t Affect Your Credit File – EVER

Did you know that when you apply for a loan or a credit card this gets lodged on your Credit File? So every time you apply for the loan, get rejected or default on a loan this impacts your credit worthiness.

However at Lodex, you can test the market, risk free. As many times as you like.

We did a Q&A with our super credit file guru and founder, Bill, to give you a greater insight into how we empower you.

  1. What is a credit file?

Everyone who has ever transacted with a bank in Australia has a credit file, or better has multiple credit files if they have transacted with multiple banks. That is we get one credit file with any bank or lender we interact with either through a loan or a credit card facility. In addition to that we have another credit file in each one of the Credit Bureaus (currently there are 3 in Australia – Experian, Equifax and Dun & Bradstreet) that provides banks and lenders credit information about you on a monthly or other frequency basis based on the new interactions you have. So, our credit file or better our credit profile evolves everyday based on the new credit data we generate.

  1. How do you get a black mark on your credit file?

Consumers can get a negative impact on their credit file each time they fail to meet their contractual obligations that is related to their scheduled repayments. So, to make it simple and keep it high level, if a borrower fails to repay his instalment for more than 90 days this is captured as adverse data (black mark) in his/her credit file that Credit Bureaus hold. Negative impact on your credit file (of course to a smaller degree) also applies each time you apply for a loan (this is called credit enquiry) or get rejected.

  1. What does this mean?

As you can imagine this is usually a stopper for a lender to consider a new lending or refinancing request. Usually banks and lenders, and this is part of lenders’ Credit Policies, which I actually used to build throughout my banking career, reject any applicant that hasn’t meet his/her obligations in the past. And the time factor here is critical as the more recent the event of default is the bigger the impact on the decision process for the lender. Having said that, usually lenders can assess cases whether the applicant has defaulted in the past let’s say 7 years ago, however (he/she) has shown an excellent credit behaviour since then, so time of the event matters!

  1. Why is Lodex different?

That’s the very interesting point of our offering. When the user runs an auction (rate request) in the Lodex Marketplace, because this is anonymous it is not considered as a Credit Application and by revealing their Credit Score (anonymously) to our partner brokers and lenders, together with other demographics, they have the opportunity to respond to the requests having a plethora of data without running an enquiry at this stage. The benefit for our member here is that they receive a number of responses tailored to their profiles without their credit file being affected. Of course, once he/she will choose one of the responses and is willing to proceed with the next steps the broker or lender will need to run an enquiry, but this will happen only with the preferred one not all that have submitted their responses.

  1. How many times can you auction a loan on the Lodex Marketplace before you impact your credit file?

You can run as many auctions as you wish. Auctions won’t affect your credit file that the credit bureau holds for you.

  1. Any advice to people who are looking for a loan or deposit?

At Lodex we reiterate what the ‘experts’ say and that is, always do your due diligence before you choose to engage with a lender, bank or broker. We have built a platform to help you do just this. Test the market, auction your loan or deposit needs, in Australia’s most efficient and easy way before connecting with a preferred lender or broker. The Lodex platform enables you to do this in a way that doesn’t affect our credit file at all. Fast, simple and totally obligation free.


If you have any further questions email customerservice@lodex.coWe are always happy to answer any questions.