The good, the bad and the new of credit reporting

October 26, 2015
Rebecca Crommelin

You may not have been aware of this, but every time you apply for a loan or other credit, a lender reviews your personal credit report. This report holds both the good and bad information about your credit history. If you've ever applied for a loan or other credit, it's likely you have a credit report held by a credit reporting agency. 

Recent changes will affect your credit report

The Australian laws surrounding credit reporting have changed recently and most people are unaware of this change, however, it may be one of the most important legislation changes to your personal finances in your lifetime. So, I thought it was vital you knew about how these changes will impact your credit report. 

In the past, "negative" reporting was used to assess your credit file - meaning the main focus was on whether or not you have been denied credit enquires previously. However, it has now changed to "positive" reporting - meaning the primary focus has now shifted to whether or not you have paid your credit (or bills) on time. 

Depending on your situation, these changes could make it easier or more difficult to secure a loan or other credit in the future. Because of these changes, it's vital you keep your credit report in great shape, even if you have no upcoming plans to apply for a loan or other credit. 

Under the new reporting system, here are some steps to keep your credit report in shape:


  • Organise automatic direct debits for loan and credit card repayments. 
  • Manage and keep track of all your credit commitments. 
  • Arrange your loan repayments for your pay days.
  • Close credit card accounts that you don't need or use. 
  • Apply for credit or a loan only when you really need it. 
  • If it's likely you will have trouble meeting your loan repayments, contact your lender prior to the payment being due so you can request an extension of time or to renegotiate your payment terms. It's important not to just skip a payment. 

By speaking to our team today, it could be the difference between securing loan approval or being knocked back on a loan in the future. So don't wait - call us today at Mortgage Choice Joondalup & Butler on (08) 9485 0090. 

Dennis Aplin,

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