If you checked your credit report right now you would find that it predominantly consists of negative information (bankruptcies, defaults, outstanding debts, etc). It also contains a basic description of your credit enquiries and not much else.
From July 1, 2018, Comprehensive Credit Reporting (CCR) will be mandated by the Australian government. This will give lenders access to a more comprehensive level of data enabling them to better assess your true credit position and ability to repay a loan. When this comes in you may see your credit score change, up or down depending on your credit history.
If you have a history of positive credit behaviour you may find that CCR will benefit you, as lenders will be able to access more information on your payment behavior on your car loan, home loan, credit cards etc over the last 24 months (including an late or defaulted repayments). Information lenders will be able to see include:
- Type of credit account (credit card, personal loan etc)
- Date the credit account was opened
- Current credit limit
- Account closed date
- Repayment history
Here at Summit Property Finance we have put strategies in place for many clients to help then achieve their goals and get finance approved that other brokers just couldn't do.
