Credit reporting changes have taken effect yesterday and investors are urged to understand how this can impact your borrowing capacity. If you haven’t paid much attention to your credit report – you should, as Australia is undergoing a major credit system overhaul.
Several major changes have been outlined since we transitioned to the new credit reporting system yesterday. For instance, defaults will now be listed on your credit file for payments late by 60 days for $150. Previously, it was listed at $100. Your repayment history will also be listed on your report for late payments for 5 or more days, and it stays on the report for 2 years. Opening, closing dates as well as account limits will also be listed on the new reporting scheme. These changes will aid lenders in having a better perspective on you borrowing capacity.
In line with these changes, borrowers are urged to pay their bills on time and to check their credit report before applying for credit. The new additions to the credit reporting system should give you an idea whether you are eligible for a loan.
Read more about this on Your Investment Property website.