Has your credit score changed recently?

There’s a chance that your credit score is higher than it was this time last year, thanks to a national change to credit reporting that was introduced in July 2018.

This change, known as Comprehensive Credit Reporting (CCR), has made it a requirement for lenders to share a customer’s full credit history with each other, both positive and negative.

Previously to this requirement it was only negative information (such as defaults and overdue payments etc.) that needed to be shared amongst lenders. The new positive information that now needs be shared includes things like when a borrower has made payments on time.

Only the four major banks (NAB, CommBank, Westpac and ANZ) are required to share this type of data, however other lenders have decided to adopt the new policy to help remain competitive.

Is this good news for borrowers?

Anyone looking for a better credit score should see the introduction of the CCR as good news.

The sharing of positive data should see most people’s credit score improve, which can provide a bit of leverage for borrowers as well as people looking to negotiate a better deal with insurance companies, utility or even phone providers.

To view your credit rating and check that the information is correct visit www.mycreditfile.com.au. Any errors on your credit record can also be reported through this website.

Quick tips for improving your credit score:

– Always make repayments on time

– Pay down outstanding debts

– Limit the amount of times you apply for loans (i.e. only apply when you need to)

– Keep track of your credit record