01.New reporting regime may affect rating
Since comprehensive credit reporting rules were introduced to Australia in March, it’s been revealed that this new type of reporting information can be detrimental for a consumer’s credit rating.
Finance website Infochoice reported that in New Zealand, which has a similar reporting regime, credit reporting agency Dun & Bradstreet (D&B) found a whopping 50% of its consumer credit files accessed by credit providers in May had at least one black mark in their comprehensive credit history.
Comprehensive credit reporting came into effect on 12 March in Australia. Before this, only major infractions were noted on your credit report, such as dodging a bill altogether or paying your phone bill 60 days late. But the new regime keeps track of a range of other information that was previously unrecorded, including:
- the date a credit card or personal loan was opened and closed
- the maximum credit limit
- whether you made the minimum payment on time.
The same applies to mortgages, investment home loans, car loans and store finance offered by a licensed credit provider such as your bank or credit union. Whether or not you paid on time will be noted each month and the information retained for two years.
D&B says they have put the first comprehensive data into their Australian system last week and they expect that credit providers will start accessing the data by the end of the year.
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