Changes to National Credit Reporting Requirements - How Will This Affect You?

New rules will soon be implemented which will affect individuals applying for credit cards, loans and mortgages.

Credit Rating bureau, Experian, explains that two-thirds of Australians are unaware of the forthcoming changes to national credit reporting requirements that will assist lenders in obtaining more information about a customer’s financial history.

Currently, lenders are only required to disclose a person’s negative data, such as defaults and bankruptcies. This will now change, due to amended privacy laws as part of new comprehensive reporting conditions introduced in 2014, which will allow positive data, such as a person’s repayment history to be shared, with credit reporting bureaus and lenders.

Suzanne Steele, managing director of Experian, explains positive data sharing to be an overwhelmingly positive change for Australian borrowers, as it can give credit providers a complete overview of any potential customer’s financial situation, which will ultimately create better situations for most Australians, regardless of their circumstances. For example, it may assist first home buyers who don’t have a long credit history, to be approved for finance, where previously they might have been declined. It will also enable those Australians with a strong credit history to access more competitive deals and interest rates.

Thus, a survey of 1000 Australians conducted by Experian in March found 71 per cent of Australians had never checked their credit score, saying they either didn’t know how, didn’t know what a credit score was or didn’t care. Ms Steele, ascertains that being aware of what your credit score is and the parts of your finances that influence the score is critical, as it enables you to know where you stand and address any issues before applying for credit.

Credit providers in Australia will soon be looking back at up to 24 months of your credit repayment history, which is why consumers need to start positively impacting their future credit scores now.

If you are unsure where to start and need assistance, contact Easy Credit Repair today and we can work out the easiest way forward for you.