Have you checked your credit score lately?
How to keep a good credit score is a question renovators often ask. The lending market is getting tighter and there was no reprieve from the Banking Royal Commission’s conclusions and findings. Changes have been implemented since the second half of 2019.
A new policy on information sharing between banks and credit providers became mandatory. This now has 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.
Check your credit for free through the reputable Equifax
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 to keep 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.