Credit Reporting Changes 2014
As of yesterday there have been some big changes made to credit reporting. While most changes will be great for some people, there are a few that could be bad news for many, especially if you are usually behind in paying your bills.
Overdue notices and late payments will now be recorded on your credit file, instead of only defaults. And it won’t be just ‘very late payments’ or payments that are months overdue, from now on if you are only a few days late in paying just one bill, this will be reported to credit agencies. If this were to be a frequent occurrence, you will be blacklisted.
On the other hand there are some good changes. Under the previous legislation every time you applied for a loan, this was recorded on your file. If you were refused, approved, or simply changed your mind, this was not recorded, only the fact that you had been applying for loans was recorded as red flags on your credit file.
That meant that if you were shopping around, applying for loans to see who could give you the lowest rate, your credit rating would take a huge hit. Under the new laws, credit providers will be able to see which of these applications were approved, which were refused and which are currently available to each person.
The new amendment to The Privacy Act will mean that your credit report will now include the following:
- Credit Account Information (e.g. How many accounts you have, and their credit limits)
- Type Of Credit And Accounts (e.g. Credit card, overdraft, line of credit)
- Monthly Repayments History (e.g. Mortgages, credit cards, and whether you paid the minimum amount on time or not)
- Credit Provider Details
Now that you can shop around for loans, without it negatively affecting your credit file, it is a great time to start reconsidering your options.
If you have too much credit card debt, try applying for some Balance Transfer Credit Cards Here.
If you have a home loan with an interest rate above 5% p.a., you could find a much better deal, apply for a new one on our Home Loan Comparison Page.
Even personal loans can be refinanced, apply for a couple of different loans and see which one comes back with the lowest interest rate, check out some potential options on our Personal Loan Comparison Page.
It will now be even more important to stay on top of your bills. If you find you are constantly struggling to pay the bills on time, or you are snowed under with debt, getting in touch with an accountant or financial planner might be a good idea.
The sooner you do it the better, especially now these new laws have come into action, you should try to avoid any late payments from right now.
If you need more help managing your debt, contact DebtFix here, for a free consultation.