How to get ready for Comprehensive Credit Reporting
Comprehensive Credit Reporting is well and truly here! Late last year, the Australian government announced it was mandating Comprehensive Credit Reporting (CCR). This means, by the 1st of July 2018, the major banks are required to have at least 50% of their comprehensive consumer credit data ready for reporting.
NAB, HSBC, and Citibank have already begun reporting comprehensive data to the credit reporting bodies, so your credit score and credit report may have updated to reflect this new information
If you’re not familiar with CCR, check out our handy infographic here.
So, what can you do to get yourself ready for these changes?
1. Pay all your repayments on time
Under CCR, credit providers with an Australian credit licence can now report your repayment history for the last 2 years to your credit file. If you’re over 14 days late with a payment, this can now impact your credit score. Take proactive actions to ensure you pay your bills, such as credit card or loan repayments on time. Consider setting up direct debits and ask your lenders to email you your bills rather than posting them in the mail.
2. Do your research before applying for credit
CCR also allows for more detailed information about your credit accounts to be included on your credit file. This includes the type of account opened, the open and closed dates, the name of the credit provider, and the current limit on the account. This means that potential credit providers can now see how many accounts you currently have opened and the amount of credit you currently have against your name.
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.
As we always say, only apply for credit if and when you really need it. If you’d like to start researching the offers in the market, check out Credit Savvy’s comparison site.
3. Monitor your credit score and credit file
With all this extra information being reported to your credit file, you’ll likely see more frequent changes to your credit score. Don’t panic! This is perfectly normal. It’s a good idea to check and monitor your credit score and credit file regularly to make sure everything is accurate and up to date. Did you know you can do this for free with Credit Savvy?
4. Correct any errors on your credit file
If you find there’s an error on your credit file, take steps to ensure this is corrected. Check out our guide to learn how to fix an error on your credit file.
5. Get Credit Smart!
There are lots of great resources out there to help you get your head around credit and credit reporting. Credit Savvy is an associate member and supporter of the Australian Retail Credit Association (ARCA), who has a great site called CreditSmart. The site is full of resources and content focussed on the changes to credit reporting, especially CCR.