We want to update you on a proposed legislative change that may affect you.
The Australian Government has proposed a change that mandates Comprehensive Credit Reporting (CCR) from 1 July 2018. Also known as positive credit reporting, the proposed CCR legislation requires the reporting of positive, as well as negative, credit history - from Australia's largest financial institutions.
What this means?
Right now your credit history only includes any credit enquiries (applications for consumer credit and credit contracts) and negative information (significantly overdue accounts, defaults and serious credit infringements, as well as any public record information). The proposed new changes mean that additional information, including account open dates, credit limits and up to 24 months of repayment history, will also need to be supplied by banks to the credit reporting bodies for all open accounts.
Most banks have begun gradually phasing this in, and starting in April 2018, they'll begin recording your comprehensive credit information to comply with the July 1 legislation changes. This will flow on to include utility suppliers, phone providers etc etc.
This means it's now more important than ever to pay your bills on time.
If you do, this will appear favourably on your credit report. As it could eventually dictate your ability to borrow as well as mean greater interest discounts.
Setting up automatic payments, can take the hassle out of remembering to pay your bills on time and will help you to keep your payments on track and your credit score in check.