Credit Savvy’s top tips to get ready for Comprehensive Credit Reporting
Comprehensive Credit Reporting (CCR) is here! National Australia Bank, HSBC and Citibank are now sharing additional data, such as customer’s credit limits and positive repayment history with the credit reporting bodies and many of the banks are expected to follow.
This is the first step towards Aussies having the ability to negotiate better rates on credit cards and loans if they have a history of good credit behaviour, such as making repayments on time.
WHAT IS COMPREHENSIVE CREDIT REPORTING?
Credit Reporting Bodies in Australia previously only received a relatively limited or ‘negative’ view of consumer credit data. They had access to data on credit enquiries (e.g. applications for personal loans and credit cards), defaults and events such as bankruptcies and serious credit infringements.
As a result of changes to the Privacy Act that came into effect in March 2014, credit reports can now include information on how many active (or open) credit accounts an individual has, account open and close dates, credit limits, type of credit account, and importantly, repayment history. This brings Australia in line with the United States, UK and New Zealand who already have this type of reporting in place.
Check out our article about Comprehensive Credit Reporting to learn more.
WHAT DOES IT MEAN FOR ME?
Previously, CCR was a voluntary opt-in system and credit providers were slow to implement positive reporting. However, in late 2017, the Australian government announced it was mandating CCR. By the 1st of July 2018, licensed credit providers are required to have at least 50% of their positive consumer credit data “ready for reporting”. A year later, they must have all of it ready for reporting.
“We expect the momentum to shift now that one of the big four banks has begun reporting this positive data,” says our Managing Director, Dirk.
With the extra information being shared about each consumer’s credit history, looking after your credit reputation is more important than ever and can pay off in the future.
At Credit Savvy, we provide you with free, ongoing access to your Experian credit score, as well as credit alerts to notify you of any key changes to your Experian credit file information.
HERE ARE OUR TOP TIPS TO GET READY FOR COMPREHENSIVE CREDIT REPORTING:
• Consider setting up direct debits to help ensure bills are paid on time
• Be careful about constantly switching credit card providers
• Notify your credit providers of your new address when you move
• Research thoroughly before applying for credit and only apply when you really need it
• Protect your identity from fraud
• Get your free Experian credit score at Credit Savvy
If you want to read further on credit score and how CCR can impact your next credit application, download the latest ‘Know the score’ whitepaper published by our partner, Experian, one of Australia’s national credit reporting bodies to learn more today.