{"id":4447,"date":"2018-10-12T12:29:50","date_gmt":"2018-10-12T12:29:50","guid":{"rendered":"https:\/\/greenhatwb.wpengine.com\/nz11\/?page_id=4447"},"modified":"2024-11-12T23:22:10","modified_gmt":"2024-11-12T10:22:10","slug":"comprehensive-credit-reporting-and-your-score","status":"publish","type":"page","link":"https:\/\/williambuck.com\/nz\/aboutus\/about-south-australia\/comprehensive-credit-reporting-and-your-score\/","title":{"rendered":"Comprehensive Credit Reporting and Your Score"},"content":{"rendered":"

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By MALCOLM ANDERSON<\/a><\/strong><\/span><\/p>\n

FINANCE MANAGER | ADELAIDE<\/strong><\/p>\n<\/div>\n

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What is Comprehensive Credit Reporting (CCR)?<\/h4>\n

Comprehensive Credit Reporting (CCR) is Australia\u2019s new reporting system which offers a complete and balanced assessment of a borrower\u2019s circumstances, through the introduction of positive credit reporting. The aim is to allow lenders to make more informed decisions.<\/p>\n

CCR came into force on 1st July 2018, prior to this date credit reporting was mainly negative and included payment defaults and bankruptcies listed. However, CCR combines both negative and positive credit reporting, giving additional information such as type of credit held as well as payment frequency and history for 24 months.<\/p>\n

It\u2019s currently mandatory for licensed credit providers to share at least 50 per cent of comprehensive data (including positive reporting) to the Australian government. This will increase to 100% as from 1st July 2019, in line with many other OECD countries.<\/p>\n

What is your credit score?<\/h4>\n

Your credit score is a number from a Credit Reporting Body (CRB) that sums up your credit position. It\u2019s calculated using the information on your credit report that licenced credit providers collate and record to CRBs of which there are three main bodies in Australia.<\/p>\n

As an example of one CRB scores range between 0 and 1,000; the higher the number, the better your score.<\/p>\n

\n\n\n\n\n\n\n\n\n\n
Example Credit Score<\/span><\/th>\n<\/tr>\n<\/thead>\n
\u00a0Excellent<\/td>\n\u00a0800 – 1,000<\/td>\n<\/tr>\n
\u00a0Very good<\/td>\n\u00a0700 – 799<\/td>\n<\/tr>\n
\u00a0Good<\/td>\n\u00a0625 – 699<\/td>\n<\/tr>\n
\u00a0Fair<\/td>\n\u00a0550 – 624<\/td>\n<\/tr>\n
\u00a0Weak<\/td>\n\u00a00 – 549<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n

Why do\u00a0you need to know your credit score?<\/h4>\n

Recent research has identified that approximately only a quarter of Australians understand what a credit score is. Yet, the introduction of CCR credit scoring will have an even greater impact on lenders\u2019 decisions regarding consumer lending, so it\u2019s never been more important to know and understand your credit score.<\/p>\n

As a rule, it\u2019s important to understand and check your credit score regularly, as something as simple as having out-dated contact details may affect your credit score if lenders cannot reach you.<\/p>\n

Benefits to Business Owners<\/h4>\n

The new CCR brings a number of benefits to business owners:<\/p>\n