As we settle into a new financial year, more change is on the way and comprehensive credit reporting will cast a wider net. Change is here!
From the 1st of July 2019, the Australian ‘Big Four’ banks are obligated to share 100% of customer data with credit reporting agencies such as Equifax or Experian. Banks will have 90 days to transition to sharing 100% this data, so changes to credit scores can be expected for many Australian’s relatively soon.
How will this impact lending?
Credit report agencies will now be able to compile a more detailed listing of your credit history than ever before. Lenders accessing your credit information via one of these credit bureaus will now see far more comprehensive data, which may change how an application is assessed, or whether your credit score has dropped or increased.
The following list of information can now be expected to appear on your credit file in the near future:
- Credit inquiry information
- Credit type applied for
- Credit amount applied for
- Opening dates of credit accounts
- Type of credit accounts opened
- Closure dates of credit accounts
- Maximum credit amount available for each account
- New and previous credit amounts
- Conditions related to repayments
- Credit providers names and whether they have a credit licence
- Overdue consumer credit account details
- Monthly repayment statuses over the preceding two years
- Default agreement details
- Commercial credit applications
- Overdue commercial credit account details
Comprehensive credit reporting has been introduced with the goal of allowing lenders to make more responsible credit decisions. Your credit score will most likely change, it is important to know your score before applying for finance. Speak with a Mortgage Broker today to discuss your credit score and obtain your report today, simply call 8300 8300.
The information provided in this article is general in nature and does not take into account your personal circumstances. Since everyone's personal situation is different, this article should not be taken as advice.