You might’ve heard talk about Comprehensive Credit Reporting being a ‘thing’ in Australia. It sounds complicated (and let’s face it, probably a bit boring). So what is it, and how could it affect you? And how can you get the most out of it so that you may be able to keep more money in your own pocket?
Comprehensive Credit Reporting – what it is and how it works
Credit reporting used to be about people doing ‘bad’ things (such as neglecting to make a payment). But with CCR, the ‘good’ things (such as when someone makes regular payments) are possibly starting to be fed into your credit history. CCR will help to build a more thorough picture of your credit information, which may make it easier for you to quickly build a credit file showing consistent repayment history, as well as showing when someone has recovered quickly after a negative event such as a default.
What’s changing – and how it may affect you
From this month, the major banks such as ANZ, CBA, Bankwest and Westpac will be following NAB’s lead and contributing more ‘positive’ information on your credit card accounts to credit reporting agencies such as illion, and this may affect your score. This is in addition to positive information that has previously been contributed by other credit providers that you may already have seen on your credit report.
This information may include:
– Dates you opened and closed an account
– Type of credit account you hold
– Your credit limit (this will be reported and may be visible on your credit report)
– Your monthly repayment history
How you can get the most out of Comprehensive Credit Reporting
CCR could be a good move for consumers, as it builds a more robust and detailed picture of your credit habits – basically, whether or not you’re a good customer when you’re using credit. It’s thought that overall, this will increase competition among the major lenders, making risk-based pricing more feasible, and consumers like you could stand to reap the benefits of a more competitive market. Here at New Vision Financial Services, we encourage Aussies like you to use their credit score to negotiate better deals, which may keep even more money in their own pockets and help them get ahead financially.
It’s a good idea to keep tabs on your credit score, you can subscribe to Equifax or Illion to ensure you are staying on top of your credit file and know whats happening with it.
To find out more call us on 1300 422 506.