Treasurer Scott Morrison recently announced plans to mandate a system known as “Comprehensive Credit Reporting” from the middle of next year, and the new requirements will apply to the Commonwealth Bank, ANZ Bank, Westpac and National Australia Bank.
“This will be a game-changer for both consumers and lenders, and will lead to greater competition in lending and naturally provide better access to finance for Australian households and small businesses,”
“If you have a good credit history – you’re paying down your mortgage, you haven’t missed a payment on your car loan and your credit cards are under control – you will be able to demand a better deal on your interest rates, or shop around, armed with your data.”
As well as sharpening competition, comprehensive credit reporting could result in a move towards risk-based pricing, whereby lower-risk customers pay a lower interest rate.
Don’t delay in assessing your individual circumstances to ensure you can take advantage of the impending changes.