Do you know your credit score? Do you know it may have changed recently as a result of comprehensive credit reporting (CCR)?
Three in five Australians are unaware their credit score may already have changed since banks started sharing positive customer data, in line with the legislation proposed by former Treasurer Scott Morrison. As lenders increasingly take into account your available repayment history when deciding whether or not to approve your credit application, it’s important to be aware of your credit score and how you can proactively manage it so that you can potentially access more competitive deals and interest rates.
Are Australians aware of the change?
To explore how well Australians understand the new positive data sharing, also known as CCR, we conducted large-scale research in 2017 and again in 2018 to see how local perceptions have changed.
An overwhelming 60% of respondents still don’t know that credit providers are sharing more of their personal financial data, let alone how this impacts their credit score. Also 65% of Australians have never checked their credit score. With 50% of rich customer credit data from big four banks being shared with credit bureaus, along with smaller lenders also voluntarily sharing holistic datasets, more than ever before your financial history counts when you apply for credit.
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Being aware of what your credit score is, and how your financial decisions impact your credit report, is vital for successful credit application outcomes for all Australians.
What should you do now?
Here are 3 core ways to look after your credit:
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Make payments reliably – Look after your future credit score now by diligently making mortgage, loan and credit card repayments when they’re due |
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Regularly check your credit report – As new data is factored into credit reports, now is an even better time to regularly check the information on your credit file to make sure it’s correct. You can do this any time free of charge with Experian or by creating a free credit profile with Experian partners like creditsavvy.com.au that can help monitor your Experian credit score and credit file information |
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Avoid multiple late payments – Consecutive late payments and paying bills significantly late to the point where debt collection agencies are engaged can negatively impact your credit rating |
To learn more about your credit score and how positive data reporting can impact your next credit application, download our whitepaper. You can also learn more about credit reports, credit scores and how to look after your credit health in our Education Hub.
Another great resource is the Australian Retail Credit Association (ARCA) CreditSmart website, created and supported by credit experts to help you understand how recent credit reporting reforms affect you, how your credit choices affect the information that credit providers can access and how you can view and control that information.
Download Now Visit the Education Hub