Credit reporting changes and their impact on personal loans

Fair Go Finance Managing Director Paul Walshe explains about the introduction of comprehensive credit reporting in Australia, and explains what these changes mean for consumers.

A Video Guide To Comprehensive Credit Reporting

Video by Fair Go Finance.

Video Transcription

Paul, what is a comprehensive credit reporting?
Well every borrower in Australia has a credit report and lenders will rely on that credit report to make a decision about a credit application, so comprehensive credit reporting is a lender having more information to make a decision.
What sort of information?
Well, historically credit reports would have only had negative information in and under comprehensive credit reporting it has positive and negative information and that positive information can be about your repayment history, the amount of credit you've been approved for whether the account is closed or still open.  
How do you think it's going to have an impact on your customers for example?
With our customers it’s a great opportunity to share the positive things they do with us with other lenders so a lot of our clients will have a default or some degree of credit impairment, but they do have a very good payment history with us so that should allow our customers to improve the financial options down the track. Things like lower interest rate loans, opening up doors to the big four banks based on those repayment histories’ so we get to share that information.
So you see this is a positive move?
I think very much so, it's a positive move that brings Australia into line with the rest of the world, the UK, the US, this kind of information will help lenders lend more responsibly, and consumers it will make them be more accountable for their behaviours.  
So we shouldn’t be worried the fact there’s more information out there?  
If your managing your payments and your making your payments each month then there's very little to worry about but if you’re missing payments and shuffling money then it's very much an opportunity for you to talk to your credit providers, your lenders and make sure that those arrangements are in place so that your credit history is also positive credit history.

Comprehensive Credit Reporting Explained

Every Australian who has borrowed money has a credit report which is used by lenders to assess your ability to repay a loan. The amount of information your credit report contains changed from March 2014. The changes will mean that more credit information can now be listed in an individual’s credit report, to give a more comprehensive picture. Your credit report is held at a credit reporting agency, and it contains information about your consumer credit history. Credit providers can access this report to assist their assessment of any credit applications you complete. The following information is currently listed in a credit report:
  • Identity details
  • All loans you have applied for (including those you have not proceeded with.)
  • Any repayment problems you have had (payment defaults, judgments etc.)
The following information included from March 2014:
  • The date any new account/loan is opened
  • The credit provider of the account/loan, the limit of the account/loan and the type of account/loan
  • The date the account/loan is closed
  • The repayment history of the account/loan
You are not required to do anything when these changes occur, we are simply advising you to ensure you are kept informed and up to date. More information about the changes can be viewed by visiting  

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