If You plan on applying for credit, it may be helpful for you to understand the changes in credit reporting in Australia. In the past, credit status was primarily reported from a negative point of view. This point of view meant that credit decisions were made based on any negative financial transactions the person may have had. In 2014, this was revised so that comprehensive credit reporting would better reflect the accurate picture of the person’s credit status.
This revised credit reporting method was made mandatory in Australia in 2018. Part of the law stated the “Big 5” banks must release any requested records to contribute to the reports.
Credit reports would no longer be dwelling on payment defaults, late payments, or underpayments. Instead, comprehensive credit reports will now be based on more positive factors.
For example, the report would note how quickly the person paid credit cards or paid their medical bills. This report would see if clients paid their rent on time and how often they used credit. By utilizing these more positively oriented credit reports, more Australians can now get credit. The rating they get with these reports also determines if they will get credit but will help define the interest rate they will be charged.
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