Powered by MOMENTUM MEDIA
subscribe to our newsletter

Credit reporting takes effect

Lenders will soon be able to assess more of their clients’ credit history than previously, following last year’s changes to the Privacy Act.

Changes introduced in March last year now allow more detailed information to be recorded.

According to Smartline Personal Mortgage Advisers, lenders should soon be able to see more of a borrower’s “good behaviour” show up in credit applications, as opposed to only negative credit history such as defaults and bankruptcies.

Most of Australia’s lenders have agreed to implement the new system over the coming months, which will assist them to make better lending decisions.

Those who have adapted to the change already are able to collect and share individuals’ positive credit information, including the date the account was opened, if it was approved or declined, the type of credit and what the limit is, along with two years of month-by-month minimum repayment history.

Advertisement
Advertisement

PROMOTED CONTENT


“While some might be nervous about this new level of information, we don’t believe that this change is necessarily a bad thing,” Smartline executive director, Joe Sirianni, said.

“It’s likely that we will start to see situations where clients with good credit ratings will be offered a better deal,” he said. “People will be able to recover faster from financial adversity and it will be quicker to establish a credit report.”

Prior to the Privacy Act changes, lenders could only view a customer’s defaults, insolvency history and credit applications, though they were not able to tell if the application was approved or declined.

 

Credit reporting takes effect
mortgagebusiness

Latest News

Banks have approved $41 billion in loans for SMEs, while about 70 per cent of SME loan applications received the green light, ABA figures sh...

The central bank is expecting lenders to exhaust the $200 billion in low-cost funding offered via the term funding facility, helping to acce...

Melbourne last week held its largest number of auctions in two months, according to new data. ...

FROM THE WEB

Join a group of highly informed brokers.

Broker Pulse, a community-driven knowledge base of lender performance Reveal exactly which lenders are making life easiest for brokers and their clients by taking this monthly survey and joining a group of highly informed brokers who leverage these insights every month.

JOIN NOW
podcast

LATEST PODCAST: Victoria’s surprising appetite for new homes

Do you expect to see strong uptake of the HomeBuilder scheme?

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.