Comprehensive Credit Reporting Rewards Deserving Candidates

credit historyFrom negative credit reporting system to comprehensive credit reporting, Australia seems to be travelling on the right path. Earlier, only infringements and credit enquiries were hotly chased. While it punished the delinquents by reducing their creditworthiness, it did nothing to reward those who pay their bills on time.

Comprehensive credit reporting

Moreover, those people suffered most that always followed the credit protocols seriously but had just erred with their most recent payments. A negative credit reporting system was not inclined to seek the merits of such borrowers but would instantly add a blot on their credit report for missing the payments last time out. Naturally, those who deserved being in the good books of the credit systems attracted brickbats for minor faults and this did not go down too well with such genuine borrowers.

Full guide ahead of the credit providers

By taking up comprehensive credit reporting, credit rating agencies have made things pleasantly transparent. Credit providers can now access a particular borrower’s credit file and seek information that may include, but is not restricted to, payments on credit cards, personal loans, utility bills, mobile phone bills, rent and other mortgages applicable.

Ready-reckoner to payment history

With lenders getting their hands on your full payment history, it will be easy for them to overlook a recent payment default if a borrower has been more or less “in the green” with his past payments.

In effect from March 2014

The comprehensive credit reporting system comes into effect from March 2014 and allows lenders to track repayment history from the month of December 2012. Looking at the broader picture, the new set of regulations will facilitate a payment mindset in people, building in them a tendency to pay bills on time and not unduly over-extend.

Are you used to using your credit cards till their upper ceiling?