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What is Comprehensive Credit Reporting?

Posted on 19 September 2024

If you’ve taken out loans or are planning to apply for loans, it’s important to keep track of your credit report. These reports provide a snapshot of your borrowing and repayment history. If you want to dive deeper, many credit reporting agencies provide Comprehensive Credit Reporting (CCR)— credit reports that provide a greater insight into your financial credibility.

By understanding the benefits of CCR, you can take control of your credit health. CCR includes both positive and negative information about your credit history that enables lenders to make more informed decisions and helps you to get better credit access and favourable credit terms.

Read on to understand how it can affect your eligibility for future credit applications and learn about the convenient loan solutions offered by Credit24.

What is comprehensive credit reporting?

Think of CCR as a more complete form of credit report. Introduced in Australia in 2017¹, it provides a more detailed picture of your creditworthiness by considering not just negative information (missed payments and defaults) but also positive data showcasing responsible financial behaviour. This can significantly impact your credit score.

If you’ve consistently paid your debts on time, CCR can be a powerful tool for securing better interest rates and loan deals. If you haven’t, your weakness may look more obvious. It’s important to understand that CCR represents a significant shift in how credit information is reported and utilised in Australia. Unlike the previous negative reporting system that mainly focused on adverse or bad credit behaviour, CCR provides a more holistic view of your credit behaviour. This change aligns Australia with international best practices.

Comprehensive Credit Report information: what’s in it?

CCR includes both positive and negative information about your credit history, including²:

  • Credit enquiries made in the last 5 years
  • Credit account information such as account type, account number
  • Repayment history over 24 months
  • Account balances
  • Current credit limits
  • Types of credit used
  • Any default or financial hardship
  • Bankruptcies
  • Court judgment over 12 months

The additional positive data on CCR allows lenders to make more informed decisions when assessing credit applications. Here are a few additional information depicted by CCR:

  • On-time repayment history information (RHI) such as credit cards, loans, and bills
  • Types of credit accounts opened including Buy Now Pay Later products
  • The name of the lenders you’ve approached for credit
  • The dates you’ve opened and closed credit accounts

What are the benefits of comprehensive credit reporting?

CCR helps people with good credit histories negotiate better loan terms and interest rates. It rewards positive payment behaviour, creating a fairer system for those who’ve overcome financial struggles. Beyond scores, CCR offers insights into your credit picture.

Let’s understand each of these benefits in detail.

  • Unlocking better deals: People with strong credit histories can use this information to seek out better credit offers. CCR is in line with many other developed nations like the UK and the USA.
  • Faster recovery from financial hardships: CCR enables you to improve your credit profile more quickly after an adverse financial event as good credit behaviour can potentially counter the impact of past defaults.
  • A fairer system: It’s a more balanced system for a person who has a good credit history as it indicates responsible financial behaviour. It’s especially beneficial for people who previously had trouble meeting their financial commitments but are now showing consistently good financial behaviour. CCR may enable them to access quality credit that they didn’t have previously. However, any defaults in repayment stay on your credit report for five years.
  • Understanding your credit in detail: CCR goes beyond credit score by allowing you to pinpoint factors that influence your score and identify areas for improvement. Additionally, lenders rely on accurate and up-to-date information in CCR while making credit decisions.

But there’s a downside too

While CCR benefits responsible borrowers, it can also expose a poor credit history more prominently. Under CCR, a poor credit history becomes more evident which can create difficulties in getting credit and lead to rejections of loan applications.

Bottom line: what CCR means for people

Comprehensive Credit Reports highlight the importance of responsible borrowing and repayment habits. With a complete picture of your financial behaviour readily available, lenders can make informed decisions based on your patterns. CCR encourages financial discipline since timely repayments now hold great weight in determining your creditworthiness. Therefore, you need to be more strict with your loan repayments as CCR makes it obvious if you’re a good borrower or not.

How to get your Comprehensive Credit Reporting?

You can obtain your CCR for free from credit reporting agencies like Equifax, Experian, and Illion at least once every three months. You can also request a free copy if you’ve been refused credit within the last 90 days or if your credit-related personal information has been rectified.³ These reports offer valuable insights into your credit health and can be important for identifying potential errors. It’s highly recommended to check your credit report periodically to ensure the information is accurate and up-to-date.

Need a small personal loan? Meet Credit24.

If you’re looking to take out a personal loan, you can apply for a Credit24 fast and 100% online loan. If approved, you can access the amount within 60 seconds. You can use the calculator on our website to estimate your potential repayment terms. We offer complete transparency—your repayments are fixed upfront and there are no hidden fees.

Consistent on-time repayments with Credit24 can positively impact your credit score and credit report which can further strengthen your future borrowing power.

Learn more about Credit24

Disclaimer:
IPF Digital Australia Pty Ltd, trading as Credit24, ABN 59 130 894 405. Australian Credit Licence 422839. The information in this article is of general nature and does not take into consideration your objectives, financial situation or needs. Lending criteria, fees and charges apply. For more information about our products, eligibility criteria and terms and conditions, please visit www.credit24.com.au.

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