How does Comprehensive Credit Reporting Impact YOU?
CHANGES TO CREDIT SCORE CALCULATIONS
Lenders now have access to more information than ever about your clients’ credit history. In this article, we’ll break down what Comprehensive Credit Reporting is and the impact it might have.
What is Comprehensive Credit Reporting (CCR)?
Credit bureaus compile credit reports based on feedback about credit behaviour from banks and other
credit providers. Credit reports contain a credit rating between zero and 1200 as a measure of
CCR is the information that lenders can access via credit rating agencies about your clients’ credit history.
The introduction of CCR changed the type of consumer credit information that can be collected and
reported. Previously, Australia only had a negative credit reporting system but now this includes positive
This includes whether your clients’ have a mortgage, mortgage repayment history going back two years,
credit card limits and repayment history, and repayment history on car or personal loans.
It is now mandatory for the big four banks to use CCR more fully and apply it when making credit
assessments. It is still optional for smaller banks and other lenders.
Who does this impact?
In short, this impacts all eligible consumer credit accounts. These are accounts which provide or can provide
consumer credit such as home loans, personal loans, car loans, credit cards and overdrafts.
Since August 2019 around four million mortgage accounts were fed in, that’s about 80 per cent of all
mortgages in Australia. 15 million credit cards, or 60 per cent of all cards, have been reported.
Following the initial bulk supply of information, the big four banks must continue to keep the information up
How does it impact you?
• Those with good overall credit histories could eventually get a lower interest rate and those without
may be charged a premium rate or find it more difficult to obtain credit.
• It should increase competition leading to better deals on mortgages, personal and business loans in the
• The inclusion of ‘positive’ information can balance the ‘negative’ information previously reported.
• It will provide greater transparency on a borrower’s credit history and their ability to pay a loan.
Therefore, if you have a good credit history – you’re paying down your mortgage, haven’t missed a payment on your car loan and your credit cards are under control – you might be able to demand a better deal on interest rates, or shop around armed with your data.
What can you do to ensure a strong credit report?
1. Regularly review your credit report
2. Report any errors
3. Pay bills and make loan repayments on time
4. Pay your credit card off in full each month
5. Lower credit card limits
6. Consider consolidating debt
7. Limit credit enquiries, as frequent applications can look bad on your credit report
8. Remove your name from utility bills if you move
9. Be cautious about identity theft.
How to download a credit report?
Request a copy from a credit reporting body like Equifax, illion or Experian. Check out the Money Smart
website to access your FREE credit report: Money Smart Website
This article provides general information only and has been prepared without taking into account your objectives, financial situation or needs. We recommend that you consider whether it is appropriate for your circumstances and your full financial situation will need to be reviewed prior to acceptance of any offer or product. You should always seek professional advice in relation to your individual circumstances. Subject to lenders terms and conditions, fees and charges and eligibility criteria apply.
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