What is changing with Credit Reporting in Australia?

We are about to see the effect of major changes in Credit Reporting in Australia. These changes are significant and could impact on you any time you apply for a home loan, credit card or any sort of loan in the future.

In the past, banks checked your Credit Rating when you applied for a loan but the information they received was very limited. Therefore, your Credit Rating was very difficult to determine.

Now mandating of major banks to supply this data, the legislative change will now start to bite those who are unaware. The concept of Positive Credit Reporting means banks and other lenders will know more about your loans and repayment history. The table below summarises these changes.

Pre-change Information collected:

  • Credit Applications;
  • Any Company Directorships;
  • Any nasties (defaults, insolvency and court data).

Additional Information to now be collected and reported:

  • All of the above PLUS
  • Date account opened (eg mortgage, credit card, personal loan);
  • Date account closed;
  • Type of loan (eg mortgage, credit card, personal loan);
  • Available loan limit;
  • Your monthly repayment history over the last 24 months.

Moving forward, those who make repayments on time could be rewarded with better interest rates than those who have a poor repayment history.

The good news is, it's not too late to make a positive change to your credit rating. It can be improved and the upside of this can directly benefit you. Now that at least 50% of the data is in the system the time is right to take action. Register for your Complimentary Credit Rating today and see how we can help you go from good to great with your individual Credit Rating.

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