Comprehensive Credit Reporting is a regime that helps lenders judge how well you can manage your borrowing commitments and make repayments. Let’s take a closer look at what the system is, how it works and the potential impact on credit scores.

1. Changes happened in 2014

Comprehensive Credit Reporting was introduced in 2014. It allowed banks and lenders the opportunity to provide more information to credit bureaus about the accounts you hold with them.

2. Your score may change

The availability of more data on your credit file means that your credit score may change. However, that’s not certain. Credit Simple’s analysis of Australians who had data from a Big Four Bank on their files showed that 52 per cent of those people saw their credit score increase after the bank started contributing information. Meanwhile, 45 per cent of credit scores fell and 3 per cent remained unchanged.

3. There may be more credit information on your file

Thanks to CCR, you may start to see more credit information within your Credit Simple dashboard. This information may include the dates you opened and closed an account, the type of credit account you hold, your credit limit, and your monthly repayment history. Log in and see what’s changed.

4. CCR is a good thing for Aussies who pay their credit repayments on time

CCR is good for consumers, as it builds a more robust and detailed picture of your credit habits – basically, whether or not you’re a good customer when you’re using credit. Information being added may help to build a more thorough picture of how you handle credit and make payments, which may give credit providers a better idea of how much they should lend to you, and on what terms.

CCR also helps to build a more thorough picture of your credit information, which may make it easier for you to quickly build a credit file showing consistent repayment history, as well as possibly showing if you’ve recovered quickly after a negative event such as a default. CCR may help increase competition among credit providers so consumers can win through better deals.

5. Our mates across the Tasman are already all over CCR

In New Zealand, CCR was officially introduced in April 2012. Kiwis with positive reporting data included in their file have credit scores that are an average of 100 points higher than before. While CCR may not result in easier access to credit for everyone, the changes should bring greater transparency to lending decisions and may help people recover more quickly from adverse credit situations.

More on Comprehensive Credit Reporting and how you can get a better deal:

You might’ve heard talk about Comprehensive Credit Reporting being a ‘thing’ in Australia. It sounds complicated (and let’s face it, probably a bit boring). So what is it, and how could  it affect you? And how can you get the most out of it so that you may be able to keep more money in your own pocket?

Comprehensive Credit Reporting  –  what it is and how it works

Credit reporting used to be about people doing ‘bad’ things (such as neglecting to make a payment). But with CCR, the ‘good’ things (such as when someone makes regular payments) are possibly starting to be fed into your credit history. CCR will help to build a more thorough picture of your credit information, which may make it easier for you to quickly build a credit file showing consistent repayment history, as well as showing when someone has recovered quickly after a negative event such as a default.

Want to know more about Comprehensive Credit Reporting? Download our free ebook here.

What’s changing  –  and how it may affect you

From this month, the major banks such as ANZ, CBA, Bankwest and Westpac will be following NAB’s lead and contributing more ‘positive’ information on your credit card accounts to credit reporting agencies such as illion, and this may affect your score. This is in addition to positive information that has previously been contributed by other credit providers that you may already have seen on your credit report. You’ll start to see more credit information within your Credit Simple dashboard.

This information may include:

–  Dates you opened and closed an account

–  Type of credit account you hold

–  Your credit limit (this will be reported and may be visible on your credit report)

–  Your monthly repayment history

How you can get the most out of Comprehensive Credit Reporting

CCR could be a good move for consumers, as it builds a more robust and detailed picture of your credit habits – basically, whether or not you’re a good customer when you’re using credit. It’s thought that overall, this will increase competition among the major lenders, making risk-based pricing more feasible, and consumers like you could stand to reap the benefits of a more competitive market. Here at Credit Simple, we encourage Aussies like you to use their credit score to negotiate better deals, which may keep even more money in their own pockets and help them get ahead financially.

It’s a good idea to keep tabs on your credit score, so log in and check your dashboard to see if anything’s changed.

More on Comprehensive Credit Reporting and how you can get a better deal: