What is credit reporting?

What is credit reporting?

Credit is something people often use to help them fulfil their dreams: buying a home, upgrading to a new car, taking that holiday or helping pay for life’s essentials. Any time you apply for credit, you go through several stages before you’re approved, one of which is credit checking. Changes are coming to the way those credit checks are reported, which is very important for you to know and understand.

Did you know that when you apply for credit, most credit providers will run a credit check on your history?

This check provides insights on how you have historically handled your credit arrangements. The credit check is put together by a reporting body who collect information from organisations such as MyState Bank. Until recently, your credit report only included limited information, such as your identity details and any relevant ‘negative’ information such as any loan defaults or bankruptcies.

Changes to credit reporting

Comprehensive Credit Reporting (CCR) allows more information to be included on a credit report, providing a more complete picture of a customer’s credit situation and behaviour. This means that lenders are able better to match credit lending to a customer’s individual needs.

Under CCR, credit information will be made available to all lenders participating in CCR including:

  • Credit accounts that have been opened and closed
  • The credit limits on those accounts
  • Details of monthly payments made on these credit accounts for the past 24 months

This means that information like whether you make repayments on time will be included in the credit report. This additional data provides a fairer and more accurate picture of your credit worthiness and supports responsible lending.

MyState Bank’s home loan, personal loan and overdraft products will be included in CCR progressively through to 2019, and this new information will be included on credit reports for our customers.