Credit Ratings Explained.....

and what this means for you.

Does it mean...

Max Credit Ratings go-sign

OR

Max Credit Ratings stop-sign

Or does it mean you are over the hurdle? Yay!

Max Credit Ratings hurdle

Ok... let's explain.

Australia's Credit Rating system has changed. Read below to understand more about what has changed, and how Max Credit Ratings can help you benefit.

1. What was (history)

In the past, banks didn't share information about your credit rating with each other.

If you had a great repayment record, other banks were not aware of this.

Information on your credit rating was limited to a list of:

  • your past loan applications,
  • company directorships,
  • any nasties such as defaults, insolvencies and other court data.

2. What is (the big change)

The Government has now made it mandatory for banks to share your information with the Credit Bureaus.

This means other banks can now know just how good your Credit Rating really is.

This extra information includes:

  • The date you started your loan and repaid your loan
  • The type of loan you have and the amount
  • Your monthly repayment history for the last 24 months

This means that everything you do is recorded and can be seen by more than just your bank.

3. Why does it matter to you

As has happened in the USA and UK, a bank can now use this information to determine your interest rate. If you have a good credit rating, the banks would want your business and price it accordingly.

Max Credit Ratings can take you from good to great, helping you to reap the benefits. Wouldn't it be nice to have the banks bidding for your business ????.