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
Paul, what is a comprehensive credit reporting?
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 http://www.creditsmart.org.au.