Borrowers will finally be rewarded for having a great track record..

Historically, your credit report has only ever provided a record of applications you’ve made and any defaults listed against you for loan repayments not made, or even the dreaded telco bill you weren’t aware of. Because of this loan applications are assessed using general statistics for the likelihood of you not paying your loan on time. This never took into account your 10 or 20 year track record of making every repayment on time.

Positive credit reporting (forcing banks to share how good your record is with the credit reporting agencies) has been in the wings for years. Unsurprisingly, none of the big banks wanted to go first, not wanting their best customers visible to the competition. Now the government has forced their hand making the reporting mandatory from next year.

Watch this space there should be exciting things to come..

Read more about Scott Morrison’s announcement here..

 

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