Comprehensive Credit Reporting (CCR) is just around the corner with one of Australia’s big four banks, National Australia Bank, indicating that it will begin sharing additional data, such as customer’s credit limits and positive repayment history with Credit Reporting Bodies from as early as August 2015.
This could be 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 currently only receive a relatively limited or ‘negative’ view of consumer credit data. They have 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.
Head over to our Credit knowledge Centre to read more about Comprehensive Credit Reporting.
What does it mean for me?
Comprehensive Credit Reporting is currently a voluntary opt-in system and credit providers in Australia have been slow to implement positive reporting.
“We expect the momentum to shift now that one of the big four banks has signalled their intent to introduce positive reporting,” 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