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The Lending market is getting tighter and there is likely to be little reprieve. When the Royal Commission concludes and give their findings, and implement the changes in the latter half of 2019.
While we wait for these changes to take effect, from 1st July. A new policy on information sharing between banks and credit providers became mandatory. Which may have implications when you wish to borrow money in the future.
Known as Comprehensive Credit Reporting (CCR), lenders are now required to share their customers’ full credit history with each other. This will include both positive and negative data about your financial past.
A credit reporting body, such as Equifax, will keep your information managed and secured. Applying for a loan will require them to share it with lenders.
Initially, CCR was only required to share between the ‘big four’ banks. However, we are starting to see smaller lenders adopting the new policy.
The good news is that, where previously your credit history would have only highlighted negative information (loan defaults, bankruptcy etc), CCR will also include your ‘good’ history so that lenders have a much clearer picture of your financial background.
So how do you ensure a good credit score?
You need to make sure all repayments are made by the date they are due. Even late payments will affect your score.
Second, protect your rating by doing your own checks to make sure that the information contained in your credit record is correct – To get a free copy of your credit score from Equifax, click on this link.
Don’t allow mistakes or even a case of identity theft to affect your credit history. If there is incorrect information, contact Equifax to have it corrected.
If you’d like to know more about Comprehensive Credit Reporting and how to maintain a favourable credit history, please click here.