Before comprehensive credit reporting (CCR), Australia operated under a “negative” credit reporting and only adverse credit showed up on your credit file. With CCR banks are required to share more information about the type of credit products you hold and your repayment history.
What is in your report?
The credit type and loan amount you applied for
The nature of the credit
The financial institution where the account is held
Maximum credit amount available for each account.
The date a credit account is opened and closed.
New and previous credit amounts.
24 months account payment history
Conditions related to your repayment.
Default agreement details
Loans that you applied for in the last five years, listed as credit enquiries.
Loans or accounts where you are more than 60 days overdue are listed as defaults.
Court judgments.
Court writs.
Bankruptcy history, including any Part IX agreements.
A default is listed, if your payment is late by 60 days or more and for amounts you owe that are over $150 and It will still remain on your file for 5 years.
Repayment history data can only be provided by and shared with licensed credit providers, so your information does not include telephone and utility accounts.
Importance of prompt repayments
Payments of any amount that is more than 2 weeks overdue are listed as late on your repayment history information. This is known as the 14-day ‘grace period’. If you’re able to pay the late payment within the grace period, there will be no late payments recorded on your credit file.
How to get a free copy of your credit report?
contact us, as mortgage brokers, we can access your credit file without leaving a credit enquiry on your file.
Why lenders use your CCR
The banks use the comprehensive credit reporting information provided on a borrower’s credit report to assist with the home loan application process, to see if there are other financial institutions where credit card, overdraft, personal and home loan accounts have not been listed on the statement of position for a loan application; or have limits or amounts owing that are misrepresented on the statement of position.
How can you help to a positive credit reporting?
Make all of your repayments on time: Set up a direct debit with scheduled repayments and maintain a savings account with a pool of money to ensure you don’t miss your repayments.
Close any unnecessary and unused credit facilities/accounts, and keep the evidence such as closure letter.
Only apply for credit or a loan if and when you need it.
Do not overdraw your credit card or your savings account.
Pay any defaults .
Show that you are good with your money by making regular deposits to a savings account.
Talk to your credit provider if you’re in financial trouble and ask to sett up a payment plan.
Ensure your credit file has accurate and up-to-date information.
What is the Repayment History Information (RHI)?
RHI shows whether you’ve been making your payments on time on your credit accounts over the past two years. When lenders make a CCR enquiry with Equifax, the report is displayed in a table format with each month over the past two years assigned with a specific score.
For 12 months, the repayment history report will look something like this:
Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec |
O | O | O | O | O | O | 1 | 2 | 3 | 4 | 5 | 6 |
What does each CCR code mean?
The codes are set out under the Australian Credit Reporting Standards (ARCA) and are a quick way for lenders to scan your repayment history. The scores are explained below:
O: Account paid on time
1: 0-29 days overdue
2: 30-50 days overdue
3: 60-89 days overdue
4: 90-119 days overdue
5: 120-149 days overdue
6: 150-179 days overdue
X: 180+ days overdue
C: ‘Account is closed’
A: ‘Not associated’
R: ‘Not reported’ – the bank or credit provider didn’t provide payment history for this period, which is a fault with the credit provider, not necessarily you as an account holder.
P: ‘Pending’ – purchases made with a credit or debit card that are pending (for up to 5 days) but have been deducted from your available funds until the merchant finalises the payment.
O: ‘Other’
T: ‘Transferred’ – a balance transfer of your debt with one lender to another usually to save on interest repayments on a credit card or store card.
How can we help?
Not all banks give the same weighting to your Equifax Score, some will score you more favourably depending on your situation and some do not use credit scoring at all.
Contact us if you would like to get more information for your particular situation, we can compare several different options from a range of lenders for you without affecting your credit file.
