The Australian government is forcing big banks to join the comprehensive reporting regime and credit bureaus have been collecting more information since the new credit reporting regime started in March 2014.

Before the change, credit reports, which credit bureaus provide to lenders when they check on applicants, only held negative information such as missed payments of more than 60 days, and bankruptcies.  Under the comprehensive reporting regime, there will be much more data, including monthly payment histories on loans and credit cards, where there will be red flags on any missed payments of more than 14 days.

Jason Yetton, chief executive and managing director of peer-to-peer lender (P2P) SocietyOne, says with the comprehensive credit reporting regime, it is more important than ever to find out exactly where you are sitting financially.  “This means you should find out your credit score, ensure your payments are up-to-date, don’t miss a bill and don’t over-extend yourself on credit,” he says.

Source: The Sidney Morning Herald