Making Sense of Australia’s Comprehensive Credit Reporting

clean credit

Understanding Bad Credit with Australia’s new Comprehensive Credit Reporting

Australia’s new comprehensive credit reporting system came into effect from March 12 this year and has changed the manner in which some lenders look at risks when accepting new clients.

Australia previously followed a kind of negative reporting system. In the old system, consumer credit reports could only hold information like credit inquiries, defaults on credit payment and serious incidents related to credit infringements. In contrast, the new comprehensive credit reporting system allows positive data to be entered in the credit reports as well.

Benefits of the new comprehensive credit reporting system for consumers

The new comprehensive credit reporting system grants Australians greater power to show credit worthiness and also to manage the credit profile.

  • Showcase good creditworthiness: A consumer can demonstrate excellent credit behavior as the new system records whether he or she has made timely credit payments.
  • Quicker bounce-back from adversity: It is possible to improve your credit profile swiftly after an adverse incident. This could help counter the negative fallout of a default with a limit of five years.
  • Swifter credit reports: If an individual is a newbie in consumer credit, the usage of exhaustive information means that it is possible to build credit-worthiness much faster.
  • A more transparent and balanced system: The new system will favor those who already have an excellent credit history. A more transparent process will also benefit individuals who have undergone hard times and have had trouble satisfying their financial commitments. They may be able to access quality credit previously denied to them.

How to avoid a bad credit rating

An individual can lose a good credit report rating if he or she indulges in the following activities:

  • Defaulting on loans and bills due: Defaulting on loans and credit bills will still have severe credit rating repercussions.
  • Taking loans without financial planning: It is highly recommended that you set yourself a repayment budget to ensure you are able to confidently repay back borrowed money.
  • Could not meet the repayment schedule: In such cases, it is better to discuss the situation with the credit provider. They can assist in this regard.

 

If you do find yourself with a bad credit rating, Australian Lending Centre is here to help. With our wide range of bad credit loans, we can help you gain the finance you need and can help you rebuild your credit score.

Fill out our online enquiry form or call us now on 1300 138 188 for a free consultation that will NOT impact your credit rating!

 

Share on facebook
Facebook
Share on google
Google+
Share on twitter
Twitter
Share on linkedin
LinkedIn
Share on pinterest
Pinterest

Leave a Reply

Your email address will not be published. Required fields are marked *

Related Posts

personal loans with no credit check
No Credit Check Loans
Jack Richings

Personal Loans With No Credit Check

Personal loans are a great cash injection. Do you want a quick & easy option with no impact on your credit score? Consider personal loans with no credit check.

Read More
Australian Economy 2020
News
Jack Richings

Australian Economy 2020

Bush fires, drought, flooding & the Covid pandemic have made 2020 a year to never be forgotten. But how has this affected the Australian Economy 2020? Find out.

Read More
what is debt management
Debt Management
Diane Challis

What Is Debt Management?

Ultimate Debt Management Guide – We discuss the difference between good vs bad debt & give tips on how to escape debt. Find out what is debt management here…

Read More