The Comprehensive Credit Reporting has improved credit scores of many Australians since 1 July 2018. In fact, recent data show that almost half of Australians have improved their credit scores with the new reporting scheme. So What is Comprehensive Credit Report and How it helps my Credit Score?

But what is Comprehensive Credit Reporting and how can it boost your credit score?Also called positive credit reporting, the Comprehensive Credit Reporting is a credit information reporting system that includes information not only for the times you have made late payments, defaulted on debts, and taken too many loan applications.

In CCR, positive information like your regular and on-time payments are also shared by lenders to credit bureaus.

Simply put, CCR “comprehensively” includes everything from bad to good in the credit history of the borrower, giving a clearer picture of the borrower’s finances.

The CCR regime started on 1 July 2018. This was when the Big Four Banks were mandated to share 50% of data. This was increased to 100% by 1 July 2019. Today, other credit providers are also sharing positive credit information, even though only the four major banks are required to.

How to Take Advantage of the CCR
The inclusion of positive credit information can provide context to bad credit info you may have. For instance, conditions related to your repayments are now included in the credit report.

And because positive information is now included, this means that you can affect your credit score by engaging in positive behaviour. Getting into the habit of paying your bills on time, for example, can go a long way.

Positive reporting allows lenders to make better lending decisions which can result in you getting better loan deals.

The table below shows the new information that your credit file additionally includes with the CCR.

Prior to CCR, Australians only have negative information listed on their credit report, but now with the CCR, positive credit data that will help boost credit scores are also included.

So are you planning a big purchase in the near future?  Start building positive financial habits now. Call us today if you need help negotiating better deals. We’re committed to helping you save money, create real wealth, and reach your financial goals sooner. Contact Us Now.

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