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Guide to Comprehensive Credit Reporting

More data is about to be included in your credit file – find out why and what it means for your finances.

In 2018, a change is coming to credit reporting in Australia. This change, "Comprehensive Credit Reporting" (CCR), will see more positive credit data included on your credit report so lenders can have a clearer picture of your finances.

This guide will take you through exactly what CCR is, the new data you will see on your file and how it will affect you.

What is Comprehensive Credit Reporting (CCR)?

CCR is a system whereby lenders share more of your data with credit bureaus such as Equifax and Experian, which in turn will list it on your credit report. Currently, Australians mainly have negative information such as defaults and bankruptcies listed on their credit report, but with CCR additional information such as the type of credit we hold and whether we make payments on time will be included.

These additional points of data will allow lenders to make better lending decisions.

When is CCR coming into effect?

Technically, CCR has been in place since March 2014. However, when it was first introduced the scheme was mandatory and the banks were extremely sluggish on getting involved with the program. On 2 November 2017, Federal Treasurer Scott Morrison announced that participation in Comprehensive Credit Reporting will be mandated for the Big Four banks.

This means that by 1 July 2018, the major banks will be required to share 50% of your credit data with credit bureaus. This will be increased to 100% by 1 July 2019. While only the four major banks (NAB, CommBank, Westpac and ANZ) are required to share this data, other credit providers will likely also share data within the same time frame to remain competitive.

According to draft legislation released on 9 February 2018, banks will have 90 days from 1 July both in 2018 and 2019 to share the required data. For the first deadline (1 July 2018) they will be able to choose which 50% of comprehensive data they provide.

Why did banks and lenders not voluntarily contribute positive credit data?

Some lenders voluntarily contributed positive credit data – as of April 2017, Equifax reported that 24% of lenders were sharing data. However, this didn't include any of the major banks.

There were a few reasons for this. One was that the banks took a long time to prepare their systems to report data to credit reporting bureaus in public mode (some banks, such as NAB, had been sharing data privately).

Another reason was that the data the banks held was regarded as an asset and it allowed them to make lending decisions and curate product offerings to their own customers. If they shared this data their competitors would be able to do the same to their customers as well.

What new information will be in my credit file with CCR?

It's important to note that you may not see all of this information included in your credit file after 1 July 2018. Firstly, banks will have 90 days to share their data. And as they only have to share 50% of comprehensive data, you may only see new data for some of your accounts or you may see that none of your accounts are updated with new data. The below list of comprehensive data can be expected to appear on your credit file by 90 days after 1 July 2019.

Credit informationBefore CCRAfter CCR
Credit inquiry informationYesYes
Credit type you applied forNoYes
Credit amount applied forNoYes
Date you opened your credit accountsNoYes
Credit accounts types you openedNoYes
Date you closed your credit accountNoYes
Maximum credit amount available for each accountNoYes
New and previous credit amountsNoYes
Conditions related to your repaymentNoYes
Credit providers names and if they have a credit licenceYesYes
Overdue consumer credit accounts detailsYesYes
Monthly repayments for the last two yearsNoYes
Default agreements detailsNoYes
Commercial credit applicationsYesYes
Overdue commercial credit account detailsYesYes

Will my credit score change?

Yes, it is likely your credit score will change. Data from Equifax has shown that generally, consumers with CCR data on their credit file will see improvements in their credit scores.

If you'd like to see if your credit score is going to improve, get your free credit score now and check it regularly. If you notice a big increase or decrease you can then order a free copy of your credit file and see if comprehensive credit data is included.


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6 Responses

  1. Default Gravatar
    yakubMarch 11, 2018

    How i can fix my credit score and who can help?

    • Staff
      JhezelynMarch 11, 2018Staff

      Hi Yakun,

      Thank you for your comment.

      Having a good credit history is important. So if you have a bad credit and needs to be fixed or repaired, kindly refer to our credit repair guide here.

      You can also look for credit repair companies that will help you in your quest to repair your credit score.

      Regards,
      Jhezelyn

  2. Default Gravatar
    jake88_88@hotmail.comJanuary 24, 2018

    Why is my credit score so low when I have no adverse information on my credit file

    • Staff
      JoanneJanuary 27, 2018Staff

      Hi Jacob,

      Thanks for reaching out.

      Your credit score is calculated using the information on your credit file, so any good or bad information listed will affect it.

      Moreover, factors such as type of credit provider, size of credit requested, number of credit enquiries, age of credit file, personal details and default information can take into account your risk as a borrower.

      If you feel that there may have been errors on your credit report you may contact Equifax directly for clarification. Meanwhile, you can check this guide to get you started in correcting mistakes on your credit file.

      Cheers,
      Joanne

  3. Default Gravatar
    LisaJanuary 24, 2018

    What is my credit score, please?

    • Staff
      RenchJanuary 24, 2018Staff

      Hi,

      Thanks for your inquiry.

      You may fill out the form on this page to get your free credit score. Please enter the details matching with your valid Australian driver’s licence.

      Best regards,
      Rench

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