A new fairer system of credit reporting is being rolled out across Australia since January 2017, it’s called Comprehensive Credit Reporting, but we like to refer to it as “ABOUT BLOODY TIME”.
So why should you care? Well it’s the most exciting news in the fight of Good vs Evil in a long time. Traditionally your credit report and credit score tracked all the bad things you did in the lenders eyes, e.g.: you forgot to pay your bill, you moved and didn’t pay the last phone bill, you changed banks and forgot about one direct debit etc. But it never rewarded all the people who did the right thing, e.g.: paying everything on time, and were never late. Well now the “Comprehensive Credit Reporting” system is more balanced and looks at your positives and negatives.
This data would typically include information such as how many credit enquiries you have made or how many defaults you have. The Comprehensive Credit Reporting introduces more data that more accurately reflects your true behaviour. The new system now includes:
Credit account history: active or opened accounts, the date when you opened an account, the date when you closed an account and the maximum amount of credit available under each active account. It’ll also include basic information about each account, such as the T&Cs and the name of the credit provider the account is with.
Repayment history: your loan repayment history over a period of 2 years including any late or defaulted repayments you may have received and the date you paid the default in full.
So why is Comprehensive Credit Reporting better for me?
You have more power to influence your credit score
Having positive data in your credit file is a great step forward for Australian consumers as it paints a fuller picture of you, the borrower. The more data recorded on your credit report gives you greater power to positively impact your credit score. You can also build a credit history much faster.
More competition & better deals
As more data becomes available, lenders will have more information to determine your credit “worthiness”. The hope being that it will drive competition in the market which will result in lenders offering a better deal based on your personal details. Wouldn’t it be nice, be rewarded for a good credit score with a lower interest rate? I say YES to that!!!
Our friends at Direct Money are already using your credit score to determine the interest rate they offer you. The better the score the better the rate, finally it pays to be GOOD!!
Blackbox Finance partners with Direct Money
Blackbox Finance are also a Direct Money partner, which means you can apply for a Personal Loan $5k-35K directly through the www.bbfinance.com.au website. The benefit is not only do they reward good scores, as a partner they offer to reduce your application fee by $100 and reduce the interest rate for our customers. So you can buy a car, boat, caravan, wedding ring, custom artwork or just consolidate some debts. No matter the reason we can help.
If it’s been a while since you checked your credit score you can get a FREE score now from www.getcreditscore.com.au it takes about 2 minutes and you will know how your tracking.
Main image from GetCreditScore.com.au