Huge changes looming for credit cards and loan applications
Australians have been warned about a raft of new data sharing laws that will affect everyone applying for credit cards, loans or mortgages in the future.
In a report published on News.com.au, credit rating bureau Experian said two thirds of Australians are unaware of the amended privacy laws which have been bought in as part of a new comprehensive credit reporting scheme.
The changes will see lenders share positive data about customers like repayment history. Lenders and financial institutions currently are only able to share negative customer data like defaults and bankruptcies. This data has already been shared among main credit bureaus, affecting applications for credit cards, loans and mortgages.
Experian managing director Suzanne Steele told News.com.au, “Credit providers in Australia will soon be looking back at up to 24 months of your credit repayment history, which is why consumers need to start positively impacting their future credit score now by making sure they diligently make repayments on time.
“Being aware of what your credit score is and the parts of your finances that impact the score is critical. It enables you to know where you stand and address any issues before applying for a new credit card, loan or mortgage.
“Beyond that, my top tips include paying bills on time, doing due diligence before applying for credit and avoid multiple credit inquires in a short period of time.”
Do you think the changes are a win?
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