Comprehensive Credit Reporting is a relatively recent introduction from the Australian Federal Government that has led to a change in the way that credit reporting agencies are listing information om your personal credit reports. Historically, most information on a credit report was negative but now, the information collated and reported provides a much more holistic view of someone’s credit activities.
The idea of comprehensive credit reporting is that it is supposed to allow lenders to make better lending decisions.
Here is an outline of some of the information now collated on your account.
The types of credit accounts you’ve had – If you have applied for credit it will be on your account. This could be credit cards, home loans, personal loans or mobile phone accounts. Basically, anything where you are offered credit. These can be over the last 2 years.
Repayments that you have made – Your comprehensive credit report will also document your repayments. It will look at how often do you make repayments and if you make them on time.
Lets’s go into some of the information on your comprehensive credit report in more detail
Personal Information – Your report includes all your personal information – name, date of birth, addresses past and present, employment details and drivers licence number.
Credit Cards – Your report will list all of the credit cards that you currently hold
Overdue Debts settled – If you have had outstanding debts in the past creditors will list a note when these debts have been repaid.
Defaults – If you’ve had bills in the past that you haven’t paid, phone bills or utility bills for example, and these have been referred for debt collection, then these defaults can be placed on your account
Times you’ve applied for credit – If you have applied for credit or guaranteed someone else’s loan, this will be listed on your credit report.
Credit limits and liabilities – When you apply for credit it will be listed on your account. The listing will include the type of product (loan, credit card etc) what the limit is and the date you applied for it. If you have discharged a loan or closed an account, the closing date will be listed too.
Repayment History – In a change from the previous reporting, the new comprehensive credit report includes your repayment history. It includes information on payment dates and whether you made the payment. This information is held for a history of up to 2 years.
Commercial credit applications – If you are the director of a company or you run a business, any loans you have applied for on behalf of your company will also be listed on your personal credit report.
Now that you have a clearer understanding of what is included in your comprehensive credit report it is important to fully understand what this actually means for you. With more information on your account, lenders have more information on which to make decisions.
With more information reported more regularly, it’s likely that you can more quickly improve your credit score by demonstrating better credit behaviour. Pay your bills on time and clear any outstanding debts. The more you do this, the better your credit score will be and the better the terms you will be offered by lenders.
More information on your credit report also means that you need to check your credit report more regularly. You need to monitor it for mistakes. You need to know what lenders are listing on your report and get on top of any errors or issues quickly.
Are you looking to make better sense of your own comprehensive credit report? If you’re looking to apply for credit bt unsure of what the information on your report means, get in touch with our experts today to chat about your personal circumstances.
