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In short, the Government has introduced legislation that makes it compulsory for lenders to share, not just bad credit history, but all credit history, whether good or bad. When you apply for credit, the lenders will be aware of all credit you have obtained from all lenders ie Home loans, personal loans, leases, credit cards etc.


As of 1st July 2018, the National Consumer Credit Protection Act 2009 was amended to establish a mandatory comprehensive credit reporting regime. Also, ASIC’s power was expanded to monitor its compliance and the Privacy Act imposed additional requirements as how data must be stored.


Under this mandatory regime, large Authorised Deposit-taking Institutions (ADIs) must provide comprehensive credit information on consumer credit accounts to certain credit reporting bodies.


“At present, credit providers have limited access to credit data on competitors’ customers. The previous credit reporting regime was based on sharing ‘negative’ credit events, such as an individual’s history of defaults.

More comprehensive sharing of credit data would reduce information imbalances between lenders and borrowers. It would also facilitate borrowers switching between lenders and greater competition among lenders. Overall, more comprehensive credit reporting would likely improve credit conditions for borrowers, including SMEs. Personal credit history is a major factor in credit providers’ decisions to lend to consumers, but also to new business ventures and smaller firms.

Empirical evidence suggests CCR reduces the likelihood that originated loans will default (reducing interest rates) and/or increases the availability of credit. Most OECD countries have some form of ‘positive’ credit reporting, either via a public credit register or private reporting body, reflecting the benefits of more comprehensive credit reporting”. (Financial System Inquiry –


Credit providers will, in future, be able to see:

When a credit account has been opened or closed (the start of an existing or past loan and when it was repaid);

The type of credit facility (mortgage, credit card, personal loan, car loan etc) and the available limit – if you have a $5,000 a month limit on your credit card but you only use $2,500 a month and pay for your other expenses with savings, your report will still record a $5,000 figure.

Your last 24 months repayment history.

It is probably good news for people with a good credit history, but if you have a bad credit history then it will be even harder to obtain credit. Payments that are late by more than 14 days will be recorded as a late payment, rather than a default. Multiple late-payments will now certainly indicate that you have trouble managing your finances.