Have you ever stopped to consider what the term ‘comprehensive credit reporting’ means? And do you know how it affects you when you’re trying to make important financial decisions? In this blog, we’ll be looking into exactly that - what is comprehensive credit reporting and why it’s important for consumers.
Comprehensive credit reporting has been in Australia for a little while, but we bet you’ve never heard of it. So, we’re changing that, here is a breakdown of comprehensive credit reporting and how it can help you on your journey to being a financial wellbeing.
In short, comprehensive credit reporting is a more detailed credit report that includes both positive and negative information about a consumer’s credit history.
With CCR, lenders get a true picture of a consumer’s creditworthiness, including previous loan applications, repayment history and hardship.
CCR puts more power in a consumer’s hands, allowing them greater opportunity to show their true creditworthiness and access credit in a more favourable term.
Traditional credit reporting only shows negative information, such as missed payments, defaults, and bankruptcy, making it difficult for consumers to obtain credit.
With traditional credit reporting, any recent positive behaviour would go unnoticed, and assessments would be based solely on historical negative information. Resulting in consumers being unfairly judged as high-risk and being denied credit.
With comprehensive credit reporting, lenders can see a more complete picture of a consumer’s credit history, which means they can make better informed lending decisions. This system benefits consumers by providing them with greater opportunities to access credit and improve their creditworthiness over time.
So there you have it! That’s what comprehensive credit reporting is and why it’s important for consumers. We hope you found this blog helpful and that you now have a better understanding of this type of credit reporting.
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