As someone who is interested in understanding their credit score we wanted to remind you of the changes that are happening right now in the Australian credit industry which may mean you see a change in your score. To view your score login here
Australia has moved to a Comprehensive Credit Reporting (CCR) system, you may recall Treasurer Scott Morrison mentioned these changes in the latest Federal Budget. In fact, this month (February) the National Australia Bank (NAB) has started sharing their CCR information with credit bureaus.
These changes mean that more information may be added to your Credit Report, which may impact your score. As more banks and lenders jump on board (which will mean more information becomes available), you may see further changes to your credit score.
What is Comprehensive Credit Reporting?
Comprehensive Credit Reporting introduces more data that reflects positive credit behaviour. The CCR system includes the following information:
- Credit account history:
- Type of credit account (credit card, personal loan etc)
- Date the credit account was opened
- Current credit limit
- Account closed date
You might want to check out our infographic to see what goes into a credit score.
More competition & better deals
As more CCR information is available to be shared by lenders, it can ultimately drive market competition and result in lenders offering a better deal based on your unique credit circumstances. In short you could be rewarded for a good credit score with a lower interest rate. Our partner SocietyOne was one of the first in the market to do this, tailoring their personal loan rates to your unique score, take a look for yourself.
While these changes are still taking place in the Australian financial market, it is not an entirely new concept. CCR is already common practice in the United States and the United Kingdom, we are simply catching up.