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Comprehensive credit reporting gains momentum

Comprehensive credit reporting gains momentum

NAB has become the first big four bank to introduce comprehensive credit reporting.

NAB has started comprehensive credit reporting (CCR) for personal loans, credit cards and overdrafts. Other types of lending will be added later this year, according to NAB.

The bank said it was staggering its roll-out of comprehensive credit reporting “to ensure a smooth transition for customers”.

Last November, the federal treasurer, Scott Morrison, said the government would legislate for a mandatory comprehensive credit reporting regime to come into effect by 1 July 2018. This will have an impact on the mortgage industry and home loan applications.

NAB chief operating officer Antony Cahill said comprehensive credit reporting would be good for competition and would mean better outcomes for customers.

“Under comprehensive credit reporting, we now have a more holistic picture of a customer’s credit situation, so we’re better able to make sure our customers receive the right type and amount of credit for their individual circumstances,” he said.

NAB’s view on comprehensive credit reporting

Most Australians have a credit report. CCR will mean credit reports will represent a more balanced reflection of their credit history.

For decades, a credit report has contained only negative information – information like when someone’s defaulted on a loan, and how many credit enquiries they’ve made.

With comprehensive credit reporting, positive credit information will be added – including which accounts have been opened, credit limits on those accounts, and details of monthly payments made as well as missed.

This will provide a more complete picture of a customer’s situation, and mean that lenders like NAB are better able to match our provision of credit to a customer’s individual needs.

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This article was reviewed by Personal Finance Editor Alex Ritchie before it was published as part of RateCity's Fact Check process.

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