Does it seem like the finance world is dominating the news at the moment?
Between the ongoing Royal Commission and the recent federal budget we wouldn’t really blame you if you were starting to ‘switch off’ to finance news.
Is there a problem with ‘switching off’? Well possibly – especially if changes in the finance world that could affect YOU end up slipping under the radar!
So what upcoming changes do you NEED to know about?
It’s probably fair to say that EVERYBODY should know about changes to credit reporting. Why? Because credit reporting could affect EVERYBODY!
And yes, changes are coming…
rom 1 July 2018 mandatory comprehensive credit reporting (CCR) comes into effect with the big 4 banks required to participate fully in the credit reporting system.
The mandatory credit reporting will give lenders access to a deeper, richer set of data enabling them to better assess a borrower’s true credit position and their ability to repay a loan.
What is CCR?
CCR was introduced in 2014 – at that time Australia shifted from a negative reporting system to a positive reporting system. However, up until now it has not been mandatory for lenders to adhere to the CCR guidelines. That has NOW changed for the big 4 banks.
What is the difference between the two systems?
Negative reporting system – recorded negative events in your credit history such as overdue debts, defaults, bankruptcy etc. Lenders based their assessment of your borrowing potential solely on this information. They could also access information on credit applications you have made but were unable to see whether those were approved or not.
Positive reporting system – this regime makes it easier for lenders to conduct a comprehensive and balanced assessment of your credit history. It now contains information on your repayment history for credit cards, home loans and personal loans including:
• whether you have made a payment or the minimum payment required
• whether the payment was made on time It also contains information on your consumer credit liability including:
• type of credit account opened
• when it was opened and closed
• the name of the credit provider, and
• the current limit on the credit account
Your repayment history is stored on your credit file for up to two years.
Why was CCR introduced?
CCR has brought our reporting system in line with many other Organisation for Economic Co-operation and Development (OECD) countries. Under CCR it is now easier for lenders to conduct a comprehensive and balanced assessment of a borrower applicant’s credit history.
The positive? If you have a good credit rating it could potentially allow you to negotiate a better deal on your mortgage, personal loan or business loan.
The negative? If you have a poor credit rating you could find that obtaining credit becomes more difficult and/or expensive. On the other hand, it may also be easier to show you have recovered and stabilised your financial situation after a negative event such as a default.
Not with the big 4 banks?
It is expected most other lenders not currently adhering to CCR will follow suit – before they are required to do so! The government is also considering extending this mandatory reporting to gas, electricity and phone service providers.
In short, at some point in the future ALL of your financial habits – both good AND bad – will be an open book to potential providers of finance and financial services.
The bottom line? There has never been a more important reason to pay attention to:
• your bill paying habits
• your credit card usage, and
• staying on top of debt…
It COULD make a world of difference to your future ability to be approved for finance.
Need some help to make sure your credit report is in tip top shape? Contact us for a chat about debt consolidation. It may not be suitable for your situation but could be worth exploring.
If it’s time to get on top of debt contact us for a copy of our debt consolidation spreadsheet and we’ll explain how it works.
Car Loans Brisbane, Queensland-Business Loans Brisbane-Investment Loans Australia
If you are on the lookout for a car loan and cannot decide which one to choose from the plethora of car loans in Brisbane, we at Your Home Loan Consultant can help you. Waiting for a loan can hardly yield positive results. Give us the responsibility of finding the best car loan in Queensland for you. Our aim is to find you a suitable loan fast and ensure that the loan helps you meet your objective – to buy your dream car.
Those with a bad credit or high score, we can offer a nice deal on the car loan. We can help you. All we need is the right documentation and paperwork. To help us understand your borrowing needs better, we arrange a discussion with you. The interest rates we choose for you are competitive and completely tailored to fit your needs. Since we have access to nearly two dozen lenders offering car loans in Brisbane, you can trust us for providing a number of options to you so that you can choose carefully.
Apart from car loan in Queensland, we also offer many options for you to choose from if you are looking for business loans in Brisbane. We have sourced financing for small businesses for many years. Be it an overdraft, commercial loan for buying your business property or debtor finance, we can assure you reliable assistance and expert advice.
Your Home Loan Consultant offers options that let you compare interest rates and other features. We are also experts in helping you get the best investment loans in Australia. With so many choices available to invest in, it can be difficult to find the right one. Besides, what should you do if you need to borrow quite a large sum of money? Are there any discounts that you can avail? What kind of structure should you choose for your business loans in Brisbane? Do you need joint incomes to repay the loan? Should the loan be interest-only or a combination of principal and interest? We answer all these questions and give you the most educated suggestions.
Contact us for further details on car or investment loans in Australia.
Debt Consolidation Australia
Your Home Loan Consultant is a one-stop shop for debt consolidation in Australia.
We are experts in the consolidating solutions for debt. Our service includes budgeting, arrangements for informal creditor, arrangement for mortgage finance and 3rd party consolidation loans, personal insolvency agreement, bankruptcy assistance, and debt agreements.
We have helped hundreds of individuals resolve their debt problems and regain control over their financial situation.
If you are struggling to repay many debts, there is a way to simplify things, by consolidating (combining) all your debts into a single loan. This way, you can pay off your debts more conveniently because there will be only one regular payment cycle. You won’t have to shell out any late payment penalties and even your total interest amount will be reduced. So, our debt consolidation in Australia services will save your money.
With our service, you can also:
- Structure your repayments to better suit your financial situation
- Ensure that your repayments are made even in the event of poor health, injury or death
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- Avail responsible financing
- Gain control over your debts
- Free yourself from the hassles and worries of several debts
To talk to our debt consolidation in Australia expert, contact us now 0401 388 153