What is comprehensive credit reporting and why does it matter?

Your credit record shows how well you have managed debt and credit in the past. It’s compiled by credit reference agencies. They collect a variety of information about you – details that together make up your credit history, on which your personal credit score is based.

Importantly, lenders will check out your credit report whenever you apply for a loan. So it’s something worth keeping in good shape.

Since 2017, that’s become easier with the introduction of comprehensive credit reporting (CCR).

How does CCR work?

Prior to 2017, only negative information was noted on our credit files. That included defaults on loans or non-payment of some bills.

This ‘negative-only’ approach meant someone could be a good money manager most of the time, but their ability to be approved for a loan was compromised by what may have been a single oversight or slip up in the past.

With the introduction of CCR, positive money behaviours are now included in your credit record. This includes regular repayments on things like credit cards. CCR also lets lenders take into account how soon you may have caught up with a late bill.

In this way, CCR gives lenders a more well-rounded view of the way you handle debt and credit.

CCR – what’s in it for you?

A key benefit of CCR is that it may have delivered a boost to your credit score.

According to credit reference agency Experian1, many Australians have seen their credit score rise by an average of 3.33% since the system switched to positive reporting.

That increase may not sound like much, but it could be the difference between being approved for a loan with a lender offering a competitive rate, and having to turn to a more expensive lender.

The upshot is that it’s worth checking your credit score regularly to see how it shapes up. The introduction of positive reporting is like being handed a gold star for sensible credit management, and it could stand you in good stead when you need to apply for a personal loan, credit card or home loan.

To learn more about how comprehensive credit reporting can impact your eligibility for a loan, talk to the team at Defence Bank. Call our Contact Centre on 1800 033 139 or visit your local branch to find out more.

Got questions? We have the answers. See our FAQs.


1 https://www.experian.com.au/insights/know-your-score


Important note: This information is of a general nature and is not intended to be relied on by you as advice in any particular matter. You should contact us at Defence Bank to discuss how this information may apply to your circumstances.

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