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

“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

PROMOTED CONTENT


>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.

“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

The big four bank has admitted to cutting off services to around 40,000 customers in the last two and a half years. ...

The latest index by the non-bank has suggested that home loans are at their most unaffordable for the first time in five years.  ...

The government has established a taskforce to look into bank branch closures in regional communities. ...

Join Australia's most informed brokers

Do you know which lenders are providing brokers and their customers with the best service?

Use this monthly data to make informed decisions about which lenders to use. Simply contribute to the survey and we'll send you the results directly to your inbox - completely free!

Do you think APRA's bank buffer changes will see more borrowers use non-banks?

Website Notifications

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