There’s nothing new about a good credit score being instrumental in securing a loan, however what consumers may not know is a recent change to the Privacy Act, in light of the royal banking commission, has made Comprehensive Credit Reporting compulsory. Whilst previously lenders would only be able to see applications for credit, defaults and bankruptcies, the revised list is far more extensive, and includes:
- Loan balances for cards, store loans, mortgages and personal loans
- Credit card limits and credit limit breaches
- Missed and late repayments from the previous two years
- Directorships
- Applications for credit, defaults and bankruptcies
The change means any debt or credit you have with Australia’s big four banks (CBA, ANZ, NAB and Westpac) will be visible to other Australian credit providers. Ultimately, this means that having a good credit history is more important than ever, as this information will directly impact your ability to access loans in the future.
Staying on top of your finances and avoiding taking on risky debt will benefit savvy investors looking to safeguard their future against potential bad credit.
