You all know that lenders go through credit report of individuals to confirm their credit record. This allows them to extract vital information and also make sure that individuals do not have any pending defaults, infringements etc. Recently Comprehensive Credit Reporting (CCR) is introduced. This is all about a change in the way; credit information can be shared by lenders for the purpose of assessing credit applications. This has come into effect from 12 March 2014. How does comprehensive credit reporting impact us? From 12 March additional information is permitted to be collected, held and disclosed by credit bureaus. Once this data is supplied by credit providers, your credit history will include information such as: • Account open date and close dates • Type of credit account such as a credit card or personal loan • Credit limit. This is the maximum amount of credit available to you for an account. If you accept a credit limit increase the new credit limit could be included on your credit history. • Monthly repayment history on credit accounts such as mortgages and credit cards. This will reflect whether you paid the minimum amount required on your financial commitments each month on time or not (licensed credit providers only). This is in addition to the existing information on your credit report such as: • Personal details – name, address and date of birth • Consumer credit information: o Credit or loan applications, known as enquiries o Overdue debts like payment defaults (paid and unpaid) o Serious credit infringements • Publicly available information such as personal insolvency information, court writs, court judgements and directorship information. What will happen if your bill is 5 days overdue? If you pay your credit card or loan repayments more than 5 days past the due date this can be recorded on your credit report as part of your repayment history information as a late payment. This repayment history information is recorded on your credit report for a period of 2 years. What if you pay your phone bill late? Only licensed credit providers such as banks and financial institutions are able to disclose repayment history information to a credit reporting body like Veda. Telco and utility companies are not licensed credit providers and cannot supply or receive this information.
Posted on: Sat, 15 Mar 2014 05:41:54 +0000