This month sees the introduction of changes to the Privacy Act, in particular the way in which your credit information is reported.
How does this affect me?
Customers will have more rights and protection for their personal information including;
- greater transparency around how organisations handle this information
- new rights about direct marketing, and
- added protection if their personal information is sent overseas.
Lenders will also know more about you.
The changes also introduce “comprehensive credit reporting” to the Australian consumer credit market that is already in use in most parts of the world.
These changes mean a credit report will now contain more of your credit information such as the amount and type of loan as well as whether or not your repayments are being made on time.
The report is updated monthly and will detail any late or missed payments and the length of time they are overdue.
These reports are used by all credit providers when assessing a credit application, whether it be for a home loan or a credit card to buy that new big screen TV.
What can I do?
If you are looking for a home loan it is important to have a good credit history.
To help ensure that your credit history is satisfactory, you can :
- close unused credit cards
- pay your bills on time
- do not exceed your credit card limits
If you are unsure of your credit history, you can get a copy of your credit file, through one of several agencies.
If you find you do have a credit mark against your name, don't panic, there may still be options available to you.
Call Fi on 0421 360 205 or email at fiona.manley @mortgagechoice.com.au
For more information on the changes to the Privacy Act go to;
This article is for general information purposes only. It has been prepared without considering your objectives, financial situation or needs. You should, before acting on the advice, consider its appropriateness to your circumstances.