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 information||Before CCR||After CCR|
|Credit inquiry information|
|Credit type you applied for|
|Credit amount applied for|
|Date you opened your credit accounts|
|Credit accounts types you opened|
|Date you closed your credit account|
|Maximum credit amount available for each account|
|New and previous credit amounts|
|Conditions related to your repayment|
|Credit providers names and if they have a credit licence|
|Overdue consumer credit accounts details|
|Monthly repayments for the last two years|
|Default agreements details|
|Commercial credit applications|
|Overdue commercial credit account details|
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.