Were you aware that every time you apply for “commercial credit” whether it be from a financial institution for a housing loan (mortgage), personal loan or credit card; or sign up for store credit; or a rental agreement for goods; or hire purchase for a car or boat that application becomes part of your “credit history report”?
Currently in Australia, credit providers use the following information contained in a person’s credit report to make decisions about their credit application:
· Identity details
· Credit application history (any loans you applied for), and
· Problems meeting repayments (such as defaults and judgements).
From March 2014, an individual’s credit report may also include:
· The date an account was opened,
· The type of account, the credit provider and credit limit,
· The date an account was closed, and
· The repayment history on the account.
The difference may not be that obvious to you. In a nutshell, previously the only repayment information documented in your credit history has been information reported by your lender when you DIDN’T meet your repayments. From March 2014, under new comprehensive reporting laws, the personal credit card and loan payments you DO make can be reported by your lender as well.
In addition, in the new comprehensive credit reporting system, your credit report may contain information that shows you have applied for commercial credit, and the type and amount of credit you have applied for.
You will also be able to see which credit providers have requested copies of your credit report .
So, why the new system?
The reasoning behind the new comprehensive system is to make a person’s credit history more transparent and balanced. Currently, only negative reports are noted on an individual’s credit report. The new system should give credit providers a clearer and more accurate understanding of an individual’s ability to repay debts.
For more information visit
For a confidential discussion on all matters credit, contact
Mark Hevron 0418 915920
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