A few months ago we sent a newsletter to advise that changes to credit reporting had been introduced, and that any repayment more than 5 days late could be listed on individual’s credit reports.
For those of you that are financially responsible and not expecting to have any negative listings on your credit report, the news probably didn’t seem too relevant. What might be of interest though is that the new laws may bring about positive changes. On-time repayments can now also be included on credit reports. In addition, credit reports now have a score.
It has been suggested that Australia may follow the path of other countries where there may be access to lower interest rates for lower risk borrowers. So paying your loans and bills on time will not only avoid a black mark on your credit report, but should also lead to a better rating. It could take some time for this to filter through as banks may need to update their systems to be able to report and make use of this information, but it is worth keeping in mind.