Comprehensive Credit Report Essay

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NEGATIVE AND POSITIVE CREDIT REPORTING.
In 2014 the government introduced legislation of Comprehensive Credit Reporting (CCR) so that all lenders can see a comprehensive and up to date assessment of a customer’s information, with the notion that this would increase competition and lead to cheaper loans for good borrowers. All lenders are supposed to report on all your borrowing activity that’s good as well as bad.
However, lenders in general, but especially the big four banks keep their customer’s good data to themselves. This data can show potential lenders how good you are at repayment of debt and even if you are ahead in your repayments. Lenders holding onto this data has a negative effect on your credit score.
Negative/low Credit Reporting
Whilst most lenders continue to only report negatively which gives you a low credit score “what’s the problem with a low credit score” you might ask. Well lenders today with the new system should have much more information to hand and you are now judged based on your credit score. They should be able to see up to date information and all history of your borrowing.
Example: …show more content…

Their credit file shows a default from 4 years ago. However, in the last 3 years the borrower has repaid a loan they have with the big 4 bank on time and even pays extra each month. Unfortunately, only that big 4 bank will see this good history as they are not sharing your data, whilst other lenders will only see the default. This big four bank is taking advantage of the account holder as they will be unlikely to get credit from another lender because of the default. This means you are more likely to stay with the big 4 bank through no fault of your own. If your good repayment history was reported your credit score would be much higher than a file with just a default on

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