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In 2014 the government made amendments to the Privacy Act 1988 permitting lenders to provide information to credit reporting agencies on more than just defaults. It allowed lenders to report on repayment history, including missed or late payments.

Up to now however, lenders have not applied this more comprehensive method of credit reporting. As a result, the federal government announced that it will mandate comprehensive credit reporting by July 2018. This will make it compulsory for lenders to provide full disclosure to credit reporting agencies on your repayment history. The move will initially apply only to the major banks, but it is expected to filter down to the rest of the industry shortly thereafter.

What does this mean?

It means that your financial institution is now required to share your credit liability information and your repayment history by providing details of whether your payments have been made on time OR NOT. If you fail to make loan or credit card payments on time, it may affect your ability to obtain credit in the future.

Who does this affect?

It affects anyone who has credit over the age of 18.

You will have an existing credit report if you have applied for any form of credit. This can include:

  1. Phone contracts
  2. Credit cards
  3. Residential or personal loans
  4. Hire purchase or car loans

What does this mean for you?

If you’ve been good (and I mean really good) – then not much.

If you’ve been bad, then we have some work to do.

What is bad?

If you have ever:

What does this mean when you are applying for a loan? If one bank rejects you, then the next one will more than likely too, even if they don’t know the other lender’s reason.

This is where we can help. We can assess your credit file and review lenders who are more suited to your situation.   You need a mortgage broker now more than ever… gone are the days when you can go to a bank to negotiate your own mortgage.

Alternatively, if your credit file is positive, we can negotiate better terms and interest rates on your behalf.

What next?

Your credit information will be available to all financial institutions. What can you do to maintain or achieve a good credit rating?

So, what’s the good news? 

If you are thinking of reviewing your current finance or obtaining further finance, and you are concerned your credit report may be affected, contact us today to discuss.