So, what exactly is CCR?
Comprehensive Credit Reporting may be a new term to some but it is the new credit reporting system, aimed at making it easier for lenders to form a more balanced and comprehensive understanding of the credit histories of their applicants.
For anyone who is looking to purchase his or her dream home in the next two years, the following information is essential.
This sound ominous!
However, it can be to your benefit, if you are informed as to how CCR actually works.
As of July 2018, the wind of change blew through credit reporting in Australia.
CCR or ‘Comprehensive Credit Reporting’ means that more data is included on your credit report so that lenders have a clearer understanding of your particular finances.
Previously, Australians had mainly only negative information included on their credit report such as defaults and bankruptcy. However, the new system will include more detail around the type of credit held and the manner and timeliness of our payment history.
Now this isn’t all bad news and for many this should help demonstrate good credit based behaviour.
However, for some who may have had a rough patch, this could be a bar to obtaining the credit they need and have a significant impact on future lines of credit.
Remember, even for people with previous defaults, you are more likely to be approved if it can be demonstrated that your last 2 years of credit behaviour is perfect.
What does this mean for my finances and me?
It has never been more important to ensure that you stay on top of your finances. For those who need a little help in getting to where you need to be, this guide is for you.
So below is the Puzzle Box Finance CCR Guide, for ensuring you stay ahead of the game. Get yourself in the best financial shape and recover more quickly from an adverse credit history.
THE ESSENTIAL TOOLKIT FOR CCR IN 2019
Step 1
Check your Credit Score
Understand where you are right now by checking your credit score, we can help you with this.
Step 2
Use credit sparingly
Use only when you really need it. Take it easy on the credit card and make sure you make your repayments on time.
Step 3
Get organized
Set up direct debits and ensure you stay in control by never missing payments
Step 4
It’s good to talk
Talk it out; if you are in trouble talk to your credit provider, they can help you with a payment plan
Step 5
Stay put!
If you can, try and stay in your current job and address when planning for your loan application
Step 6
Don’t wait – Consolidate
You may find consolidating your debts is the best way to stay on top of your commitments
Step 7
Keep it real!
Make sure that your credit file is accurate and pay off any defaults shown. If inaccurate, take action to ensure that this is rectified.
Step 8
Protect yourself
Make sure you take sensible precautions against identity fraud
For more information on improving your credit options, or if you are looking at the next finance steps for you and your family, Contact Us at Puzzle Box Finance who will be happy to walk you through the options that may be open to you.
Get yourself in the best financial state to open as many doors as possible.
Check our Puzzle Box Finances Calculator here: (Insert link)
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