Can’t say that I ever remember it making the headlines, but in March 2014, changes were made to Australia’s credit reporting system. We now have a thing called the Comprehensive Credit Reporting system, the CCR.
When we think about credit reports, we tend to focus on the negative. A bad credit history can be a financial pain in the butt, seriously restricting your financial options. And often, the first time we know about it is when a credit application is refused.
With the introduction of the CCR, credit reporting is now relevant to everyone, even those with good credit. Good credit reports could now lead to better terms and conditions.
Under the new rules, credit reports will progressively include a wider range of information. And not just the bad stuff. It will record good payment history too.
Good credit scores are evidence of good personal financial management. Based on the overseas experience (in the US and UK, similar rules have been in place for a while), we can see this leading to better outcomes for the financially organised. Use your documented credit history to negotiate better payment or credit terms. It may also mean easier and quicker approvals.
So it’s more important than ever to understand and take control of your credit report.
Key rights under Australian law include:
Get to it people, your payment behaviour is more important than ever.