NAB rolls out Comprehensive Credit Reporting

Posted: 20 February 2018 1:25 pm

The bank will now consider examples of both positive and negative behaviour when assessing loan applications.

NAB has announced that it is implementing Comprehensive Credit Reporting (CCR) for personal loans, credit cards and overdrafts from Monday. This means that when you apply for a credit card or loan with the bank, it will consider both positive and negative aspects of your credit history.

For decades previously, your credit report only contained negative information, such as if you defaulted on a loan or the number of credit enquiries you’ve made. With CCR, your report will also contain positive behaviour, such as details of your repayments as well as a history of your accounts and credit limits. This means that NAB will have a more balanced and thorough overview of your credit history when assessing new applications.

“Under Comprehensive Credit Reporting, we now have a more holistic picture of a customer’s credit situation, so we’re better able to make sure our customers receive the right type and amount of credit for their individual circumstances,” says NAB's chief operating officer Antony Cahill.

In November, we reported that the Australian government announced this new regime to help Australians get better deals from lenders. But mandatory Comprehensive Credit Reporting won’t be enforced until 1 July 2018, so NAB is the first of the big banks to roll out CCR ahead of the government’s scheme. The bank also plans to implement CCR for other types of lending later in the year.

For consumers, this means that you might notice additional information for some accounts on your credit file. It’s also predicted that CCR will help inject some competition into the banking sector, as it may encourage lenders to offer lower interest rates and better access to credit.

“We believe CCR is good for competition, and will mean better outcomes for customers,” said Cahill.

CCR could also encourage Aussies to make smarter financial decisions, as their good behaviour will be reflected on their credit file.

“Although as many as 80% of borrowers across Australia are likely to have been making their repayments on time, this new insight for lenders is why borrowers need to remain vigilant over their repayments, so they can continue to positively impact their credit scores in the future," said Experian Australia/New Zealand managing director of credit services and decision analytics Poli Konstantinidis following the introduction of the CCR scheme in 2017.

Although CCR changes will namely impact financial institutions at first, the government has also expressed interest in extending this reform to telcos and utilities in the future.

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