If you are planning to buy a property or doing refinance, you must know this new Comprehensive credit reporting ! - Laxmi Home Loans

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If you are planning to buy a property or doing refinance, you must know this new Comprehensive credit reporting !

Do you know your credit score?

According to the data by one of Australia’s Credit Reporting Agencies, Experian, 65% Australians have never checked their credit score. With the recent changes by the Federal Government since July 2018 regarding the credit reporting laws, credit providers are now able to view an individual’s repayment history in more details than before. Therefore, it’s high time for you to be more educated about your financial history!

With the encouragement of Comprehensive Credit Reporting, a credit report will now include both positive and negative credit behavior.  Previously, a credit report only reflected negative information like a delay or default in repayment. The positive behavior, such as, timely payment of debt, was not shown in the credit report. With the new changes, a credit report will majorly show details such as:

  1. the open and closing date, the credit type and 24 months of repayment history
  2. a mortgage loan limit and limits on other accounts
  3. Bankruptcies, visible for at least five years
  4. Court judgements
  5. Loan application and types of loans taken out

Thus, the credit reporting change is an opportunity for potential home buyers to be more responsible with their financial habits beforehand and meet their financial commitments timely. A good financial behavior will contribute to higher loan approval prospects from the lenders.

You have to opportunity of checking your credit report for free once a year- it’s time to grab the opportunity!

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