Short term loans lender Jacaranda Finance to provide positive credit data
Jacaranda will start contributing positive credit data alongside the major banks on 1 July 2018.
Short term loans lender Jacaranda Finance has announced that it will contribute positive credit reporting data to credit bureaus as part of the comprehensive credit reporting (CCR) regime from 1 July 2018. This follows the announcement by federal treasurer Scott Morrison that Australia's Big Four banks will be mandated to share their positive credit data after their sluggish response to the introduction of the voluntary CCR rules in 2014.
The major banks will be required to share 50% of their positive credit data by 1 July 2018, moving up to 100% by 1 July 2019.
Founder and CEO of Jacaranda Finance Daniel Wessels is in full support of CCR, saying he's glad that the lender will be able to expand on its criteria "in such a positive way".
"We’re shifting to look at the potential of the client, not the risk alone,” he said.
“Positive credit reporting will mean that we can get a much better idea of an applicant's eligibility based on more specific financial information that belongs to the applicant.”
“Once this system is launched, it will be so much easier for consumers to improve on their credit score and financial position."
The government has previously called on the banks to participate in CCR to benefit lenders such as Jacaranda Finance. As part of the independent review of Small Amount Credit Contracts (SACCs), the Treasury said that the bank's participation could assist short term lenders in making better-informed decisions.
Many short term lenders (commonly referred to as payday lenders) rely on a borrower's banking history, income and employment information to assess their capacity for a loan, but this may change with more positive data available on a borrower's credit report.
“In starting Jacaranda Finance, I wanted to be able to set up a platform that consumers from all walks of life could come to and ask for help when life threw them an unexpected bill or expense,” Wessels said.
“As we have our own responsibilities when it comes to approving eligible applicants, I am glad that we will now be able to expand on our criteria."
- Qantas Points Auction: What are the best deals?
- How to watch Tokyo 2020 men’s and women’s 100 metres finals live
- How to watch Melbourne Storm vs Penrith Panthers NRL live and match preview
- How to watch Newcastle Knights vs Canberra Raiders NRL live and match preview
- 5 tips to start investing in European stocks