Will your credit score change with new credit reporting regulation in July? How you can improve your credit score
Up until now, your credit reporting score could be impacted by such things like defaults and late repayments- mostly negative data that became warning signs for lenders as to your potential credit risk.
If you kept up your payments up to date, there would be no “red flags”, yet you never got credit for good credit behaviour.
From July 2018, lenders will be required to provide credit ratings agency with more positive information about your credit history.
Maybe you did have a delinquent payment several years ago, but the body of your up-to-date mortgage repayments could indicate that you are a trustworthy customer despite a one-off past slip-up.
This can also help borrowers get cheaper loans by improving their credit score.
Treasurer Scott Morrison was reported by The Sydney Morning Herald in February saying that the upcoming Comprehensive Credit Reporting (CCR) will be a game-changer.
Smaller lending competitors will be able to offer lower interest rates since they can better qualify how risky prospective borrowers may be.
“Customers with good credit histories will be able to obtain lower rates, and be better placed to shop around because their credit history will now become available to all lenders.”
How you can improve your credit score
ASIC’s moneysmart website has a list of things you can do to raise your credit score and protect it.
- lowering your credit card limits
- consolidating multiple personal loans and/or credit cards
- limiting your credit enquiries
- making your repayments on time
- paying your rent and bills on time
- paying your mortgage and other loans on time
- paying your credit card off in full each month
elk corp can help you improve your credit score, and also get the financing you need for your personal, home and commercial lending you need.
We can review your current loans, along with your expenses and income, to structure your finances and cut costs.
Find valuable savings and be more financially secure.
Take control of your future with elk corp’s professional and expert advice.
Contact elk corp for the answers.
Read More:
https://www.smh.com.au/business/banking-and-finance/good-customers-to-get-cheaper-loans-as-banks-fall-into-line-20180208-p4yzph.html