Comprehensive Credit Reporting (CCR)

Blog: Comprehensive Credit Reporting (CCR)

20 April 2018

Author: Tim Geurts

There are some proposed legislative changes in the works that may affect you.

A quick overview

Legislation to enforce mandatory comprehensive credit reporting (CCR) was introduced into the Australian Parliament in late March 2018.

Your credit history currently includes:

  • credit enquiries (eg. applying for a loan, a credit card, and other consumer credit such as AfterPay)
  • negative information (eg. significantly overdue accounts, defaults, serious credit infringements).

So the key word in the changes is “Comprehensive”.  The proposed legislation mandates the reporting of positive (as well as negative, credit history) from Australia’s largest financial institutions.  It means that additional information will be supplied to credit reporting bodies, including account open dates, credit limits, and up to 24 months of repayment history.

What the changes mean for you

Overall, the CCR changes could be beneficial:

  • A person with good credit history may have opportunity for better deals
  • The visibility of ‘good’ information could increase competition between lenders
  • Small credit infractions won’t be as detrimental since they will be balanced by positive reporting

Think of it this way: If you had a few late payments on your credit from a few years back, this would be all a lender would currently see.  In the future however, they will also be able to see a recent history of repayments. Basically, a knock to your credit won’t hurt as badly since it is balanced with positive information.

A study by credit-reporting agency Veda in 2016 found that the average credit score for an individual increased once CCR data was incorporated.

What can you do

Basically, it is now as important as ever to pay your bills on time, as this will appear favourably on your credit report.

Setting up automatic payments can take the hassle out of remembering to pay your bills on time and help you to keep your payments on track.

About the Author
Tim Geurts blog
Tim has an in-depth knowledge of the Australian mortgage sector makes the loan process simple and stress-free. It pays to have him on your side, whether for the purchase of a new home or seeking a better deal on your existing loan.

Known for his accessible style and warm approach, Tim believes that educating people about their mortgage will help them to achieve their financial goals sooner.