New changes to the way your credit report is compiled have kicked in on March 12, and your credit rating may be affected. With changes to the Privacy Act, credit providers are now sharing increased information, including whether you make your loan repayments on time. Catch up now to ensure that your credit rating stays in shape.
Whilst in the past, lenders have only been required to report a customer default on loans when they are more than 60 days late on their payments, now all late payments will be reported, including how late your payments were.
Credit reporters are now also able to share information backdated as far as December 2012, and your credit report will contain two full years of your payment history.
Why does this matter? Your credit report will play a vital role in your ability to own your own home, buy your dream car, or obtain a credit card to take on your overseas holiday.
If you always pay your bills on time this is great news for you, because credit providers will be able to see all of your good behaviour and assess any applications for credit accordingly. However, if you have made late payments in the past, you are now more likely to be penalised and have credit denied.
Credit Reporting Changes 2014:
• Repayment History Information (RHI) now includes information regarding whether you have made payments on time or whether you have missed any payments.
• If you only pay part of the amount owing, this is treated the same as having missed a payment.
• RHI will include the day on which a payment is due, and if you pay a payment after that day, the date on which it was paid.
Whilst credit providers say that it is important to get a clearer picture of a person’s credit record to predict potential credit stress, some consumer groups are concerned about these changes as they may make it more difficult for low-income Australians to get loans.
To make sure that your credit rating is in good shape, read up on the latest changes here: strattonfinance.com.au
