The Comprehensive Credit Reporting has improved credit scores of many Australians since 1 July 2018. In fact, recent data show that almost half of Australians have improved their credit scores with the new reporting scheme.
But what is Comprehensive Credit Reporting and how can it boost your credit score?
What is Comprehensive Credit Reporting?
Also called positive credit reporting, the Comprehensive Credit Reporting is a credit information reporting system that includes information not only for the times you have made late payments, defaulted on debts, and taken too many loan applications.
In CCR, positive information like your regular and on-time payments are also shared by lenders to credit bureaus.
Simply put, CCR “comprehensively” includes everything from bad to good in the credit history of the borrower, giving a clearer picture of the borrower’s finances.
The CCR regime started on 1 July 2018. This was when the Big Four Banks were mandated to share 50% of credit data to credit bureaus. This was increased to 100% by 1 July 2019.
Today, other credit providers are also sharing positive credit information, even though only the four major banks are required to.
How to Take Advantage of the CCR
The inclusion of positive credit information can provide context to bad credit info you may have. For instance, conditions related to your repayments are now included in the credit report.
And because positive information is now included, this means that you can affect your credit score by engaging in positive behaviour. Getting into the habit of paying your bills on time, for example, can go a long way.
Positive reporting allows lenders to make better lending decisions which can result in you getting better loan deals.
The table below shows the new information that your credit file additionally includes with the CCR.
Prior to CCR, Australians only have negative information listed on their credit report, but now with the CCR, positive credit data that will help boost credit scores are also included.
So are you planning a big purchase in the near future? Start building positive financial habits now. Call us today if you need help negotiating better deals. We’re committed to helping you save money, create real wealth, and reach your financial goals sooner. Contact us now.
Need advice from a financial professional? Contact a Chan & Naylor accounting specialist here.
Aside from financial services, have a look at our other accounting and advisory services designed to help you achieve greater financial success.
If you like this article, “How Comprehensive Credit Reporting Will Boost Your Credit Score,” subscribe to our newsletter and stay in touch with us by liking our main Chan & Naylor Facebook page, as well as our Linkedin, Instagram, and Twitter pages.
The Chan & Naylor Group has national offices in South West Sydney, Sydney, Pymble and Parramatta in New South Wales, Wheelers Hill, Melbourne, Moonee Ponds and Hawthorn in Victoria, Brisbane and Capalaba in Queensland, and East Perth in Western Australia that can assist you with your accounting needs. Contact us here today.
The material on this website has been prepared for general information purposes only and not as specific advice to any particular person. Any advice contained on this website is General Advice and does not take into account any person’s particular investment objectives, financial situation and particular needs. Before making an investment decision based on this advice you should consider, with or without the assistance of a securities adviser, whether it is appropriate to your particular investment needs, objectives and financial circumstances. In addition, the examples provided on this website are provided for illustrative purposes only.
Although every effort has been made to verify the accuracy of the information contained on this website, lnfocus, its officers, representatives, employees and agents disclaim all liability [except for any liability which by law cannot be excluded), for any error, inaccuracy in, or omission from the information contained in this website or any loss or damage suffered by any person directly or indirectly through relying on this information.