Credit reporting is changing and it affects everyone

In March 2014, The Privacy Act 1988, the governing legislation of consumer credit reporting in Australia, was amended to introduce comprehensive credit reporting.

Before the amendment to The Act, consumer credit reports only contained information such as credit inquiries, defaults, and other serious credit infringements.

Following the amendment, licensed credit providers, such as lenders, can report comprehensive information such as when accounts were opened or closed, credit limits, the types of credit accounts, and up to 24 months of repayment history.

We’re seeing more credit reports than ever contain repayment history. This can be both positive and negative for the prospective borrower and can be the difference between an approval or rejection for your loan or credit card.

We strongly recommend borrowers are aware that this information is becoming more accessible and that more creditors are beginning to share this data with credit bureaus.

One of the key recommendations we suggest to borrowers who are facing difficulty with managing late repayments is to look into options sooner rather than later.  Look at options to consolidate debts or chat to the lender to see if you can make arrangements that are more affordable for a period of time. Just don’t ignore the issues as this can affect your future.

To find out how or for more information on comprehensive credit reporting, give the friendly team at WhiteStar a call on 1300 652 842