Catherine Mapusua -
General Manager, Inception Finance
Last week it was announced that there has been big changes implemented to how your credit rating is calculated, with lenders able to access more information about your credit history than ever before.
It has its supporters and its doubters and has been five years in the making.
Let's break down what it means for you.
What is comprehensive credit reporting (CCR)?
It's a beefed-up system of information about your credit history that lenders can access via credit rating agencies.
Previously, lenders were only able to find out negative information about your credit history, like payment defaults, bankruptcies and court orders and judgements.
In 2014, the government brought in changes so more "positive" information will be included.
This includes whether you have a mortgage, your mortgage repayment history going back two years, your credit card limit and repayment history, and repayment history on car loans and personal loans.
So why has it only come into effect now, if it was released in 2014? Well it's taken the big four banks this long to have uploaded all their mortgage data to the system. Yep, you heard that correctly, 5 years to do something, an incredible statistic.
In the past month, about 4 million mortgage accounts were fed in, meaning now 80 per cent of all mortgages in Australia are known for CCR.
Click here to see the full article.
If you want to find out how you can fix your credit or want to find out more about this article feel free to call one of our Finance Manager's today!
Big changes to how your credit score is calculated have come in. Here's how they affect you. (2019, September 24). Retrieved from https://www.abc.net.au/news/2019-09-24/there-are-big-changes-to-how-your-credit-score-is-calculated/11528286