It's not all negative - Comprehensive Credit Reporting
You may have heard the term comprehensive credit reporting. Also known as positive credit reporting, this is the newest means of collecting and reporting an individual’s credit history whereby both negative and positive financial events are documented. It’s important to note that for a lender to access this level of information about an individual they themselves must provide their data for reporting.
This gives lenders a more comprehensive understanding of your credit worthiness by factoring in:
- The date accounts were opened and closed
- Disclosure of credit limits
- Number of credit enquiries
- Company directorships
- Month-to-month record of repayment conduct on all credit accounts
Comprehensive credit reporting will be mandatory as of the 1st July 2021.
Positive credit reporting allows individuals who may have experienced hardship previously, or defaulted as a once off incident, to evidence their positive repayment history post these events.
It's important, now more than ever to ensure that you are making all repayments on time.
We recommend taking the following steps:
1. Take advantage of the annual free credit report offered by one of the credit reporting bodies (Equifax, Illion, Experian) to gain an understanding of your current score & credit history
2. Set up automatic payments
3. Close any existing lines of credit that you do not use ie. additional credit cards.
If you're confused at what comprehensive credit reporting may mean for you or wish to discuss this further with a member of our team, please reach out anytime on 02 9249 9156
Disclaimer: This document has been created by Loan Market Pty Ltd (ABN 89 105 230 019, Australian Credit Licence number 390222). It provides an overview or summary only and it should not be considered a comprehensive statement on any matter.You should before acting in reliance upon this information seek independent professional lending or taxation advice as appropriate specific to your objectives, financial circumstances or needs. Information included has been sourced from third parties and has not been independently verified. Accordingly, Loan Market Pty Ltd is not in any way responsible for nor provides any warranty express or implied as to its accuracy or relevance.