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November market update

Credit Reporting has changed for good, and it’s important to understand how this might affect you.

Credit reporting refers to the data available in your credit file. Every time you apply for credit, your credit file is viewed by the potential lender to gain an insight into your credit history and creditworthiness before they make a decision on your application.

What is comprehensive credit reporting?

  • Previously the information on your credit file is fairly limited to things such as; details of your credit applications, defaults, judgements, bankruptcies, etc.
  • CCR information is available for all consumer credit products, including: credit cards, personal loans, home loans, car loans, etc.

With CCR the available data is much more ..comprehensive

It is now more important than ever to pay your bills and financial commitments on time so that you can demonstrate  a favourable credit history on your credit file.

When has CCR come into effect?

CCR is in effect as of September 2019

What information is available under CCR?

CCR table

How does CCR benefit consumers?

These changes are designed to deliver better outcomes for customers as it should increase competition in lending markets. By providing more information to credit providers, they are now able to make more accurate and reliable decisions, and as a result, a higher credit score borrower could be rewarded through lower interest rates.

It is important on top of these changes so that you are aware of what information can be accessed by credit providers about your credit history. You may actually see a change in your credit score as a result of this additional information…

What does CCR mean for you?

Your credit score number is generated by a credit reporting agency to summarise the information in your credit file, and therefore your credit worthiness. A higher credit score reflects a more favourable credit history.

Firstly we recommend creating a a monthly calendar so that you are fully across all your regular financial commitments.
Additionally we recommend setting up automatic payments and direct debits where possible to avoid any missed payments.

RBA rate cut

The RBA has cut the cash rate 3 times in the past 5 months, June, July and October. The cash rate now sits at a record low os 0.75%. As per our previous market update, mortgage lenders ave cut their variable rates in response to the RBA’s actions. Please review your variable rate to ensure you are realising the benefit of al 3 variable rate reductions.

A quick look at some lender reductions after the rate cut

lender rate cut

 

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