After finance? Get on the front foot with CCR
When was the last time you applied for finance?
Do you know your credit score?
Are you comfortable with your score or do you cringe and bury your head in the sand?
Do you know what data is kept in your credit file that might affect your score?
Did you know from 1 July 2018 the Comprehensive Credit Reporting (CCR) came in to effect?
You might have expected from all the data that is available these days, not only on our spending habits and saving habits but a whole range of items, that it would only be a matter of time before this information would become easily accessible to credit bureaus.
Sounds scary doesn’t it? And it is a little, but the upside is that we can be a step ahead if we know what they’re looking for. This will ensure that when we want access to finance we’re squeaky clean and ready to go.
Let’s start with what CCR is all about.
CCR is a system that essentially shares your data with credit bureaus such as Equifax and Experian. Currently the data that is shared includes defaults and bankruptcies but it will now be extended to include the type of credit we hold and whether we make payments on time. As of November 2017 our then Federal Treasurer ScoMo mandated CCR for the Big Four banks. Taking effect 1 July 2018 they are required to share 50% of your credit data with credit bureaus, by 1 July 2019, 100% will be shared. In addition they have 90 days to share their data.
So why wasn’t this data shared before by banks? Quite simply the data held privately by the banks was an asset which allowed them to curate products that targeted their own customers (bit cheeky really!). By making this data publicly available theoretically we should be seeing more competitive offerings based on our credit scores.
Okay so let’s get down to specifics, below is a list of the information that is expected to appear on our credit files 90 days after 1 July 2019, however some of this information may be available 90 days after 1 July 2018 (remember only 50% has to be reported 90 days after 1 July 2018, 100% 90 days after July 2019):
Quite comprehensive indeed! Also it’s important to note that the report includes any debts or defaults with the ATO including for Directors of Companies that may have defaults or outstanding debts.
So it’s highly likely your credit score will change, but of course knowledge is power. If we know what they have we have the power to change our credit score. So get those direct debits set up and check your score! And of course we’re always here to help, so if you need finance or are unsure of what this means for you give us a buzz and we can have a chat!
Author: Jessica Pol