Andrew from Vista Financial

Major Changes to Credit Reporting

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    Australian credit reporting practices are changing to be inline with the rest of the OECD.


    Traditionally, Australia have used “negative” reporting.


    From March 12, this will change to “positive reporting” – meaning the assessment will be made with the focus on whether or not you’ve serviced your credit on time.


    In its totality, this is a fairer system because more data is considered so it’ll be a truer representation of how “good” you are.


    However, there is a downside. The implication of the new laws is that every time you’re late paying a bill, a black mark will essentially be registered against your name.


    Whilst the new reporting comes into effect from March 12 2014 companies can backdate data to Dec 2012:


    For more info read the following links:








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    Hi Stephen


    Actually at this stage there seems to be some uncertainty about how this will impact things certainly initially anyway.


    Credit scroing is already used by a number of Banks/Lenders for mortgages, not all and so the data collected regarding late payments will most certainly form part of the algorithm.


    We had a a Global Bank present yesterday and they suggested that there were a number of lenders that showed resitance with taking part in this due to the time involved in reporting and certainly there is suggestion that a number will only report data as of March this year and not backdate to December 2012 (as they are able to).


    Personally I do not think it will impact on new migrants in terms of having to build a credit rating before being able to secure a mortgage, I think it is more to do with lenders being able to fully understand the potential clients payment habits in making there lending decisions.


    I also think that from this we might start to see more lenders rate for risk in other words if they do have a habit of paying late but do pay for example, a loan may be offered but with a higher than normal interest rate.





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