New credit reports 'will capture more bad behaviour'
New laws to be brought in next year will mean that credit reports record more "bad behaviour" like late payments on credit cards or utility bills, a commentator has said.
Nick Gardner, a finance writer for News Limited, said that the introduction of "comprehensive reporting" will mean lenders will have access to more information about personal debt and payment defaults.
However, Mr Gardner observed that there is also hope for Aussies because the new system will also incorporate positive data about a person’s borrowing history. At present, credit agencies focus solely on collecting negative information.
Referring to the change, Christine Christian, chief executive of credit agency Dun & Bradstreet, told the writer: "Even if you’ve had trouble in the past, you will be able to work off much of the impact of any earlier misdemeanours."
The news may interest Australians who decide to compare credit cards following concerns about mounting debt. Earlier this month, the Australian Associated Press reported that Aussies spent a record $22 billion on credit and charge cards in December last year.
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