Rapid Finance on 22 February 2022

What's involved in comprehensive credit reporting

The credit reporting system has changed recently in Australia (and by recent, we mean in approx. 2019) – and it has been changed for the better.

Initially, the credit reporting system used to be based on the negative credit rating system– and only that. (Along with enquiries) Thanks to the introduction of Comprehensive Credit Reporting (CCR), it means great news for many Australians who are in need of credit or anyone that wants to get a loan. Along with CCR, it brings changes for both parties involved in a loan, it also brought Australia’s credit reporting system in line with other countries like the US and the UK, making knowledge of the system interchangeable.

What are some of the changes being introduced? It’s a great question and we’ve got you covered.

When you apply to any lender for a loan, they will have the ability to look at a credit report to help decide if you’re able to repay the loan you’re taking out. In the past, the report would focus on the negatives – no matter how big or small – and this would immediately put you on the back foot.


Here are a few positives when it comes to CCR:

  • Your recent positive credit behaviour is documented, which may balance out any negative slip-ups (such as a missed payment from years ago).
  • Those with a fairly short credit history will now (potentially) have more information against their name when it comes to creditworthiness – making it easier for lenders to decide on the outcome of a loan.
  • The impact of one single negative event won’t have such a big weight to it, purely because it can be balanced out by positives. Assuming payments are being made on time)
  • An individual’s credit score is a lot more accurate and comprehensive under CCR – all information regarding past loans are recorded, (Up to 2 years worth) and not just the negatives.
  • Having access to the in-depth information CCR provides, it’ll help lenders stay accountable when it comes to their lending obligations and identify things like credit stress at a much earlier stage – this will ultimately lead to fewer bankruptcies and bad debts. 

While CCR is something that is fully welcomed by consumers and lenders across the board, that doesn’t say it doesn’t have its negatives. For instance, CCR includes only up to 24 months of a customer’s repayment history – positive or negative.

It’s also not mandatory for all lenders in Australia to participate in the CCR system; however, the majority of mainstream lenders are, and many more are making the switch. As said previously, it’s a win-win for both parties no matter what angle you decide to look at it from.

Lastly, the information being put forward to lenders can be viewed quite subjectively. While it may seem like a positive in your eyes, the lender may not view it the same way – so be wary of that when you go through the lending process with an institution of your choosing.

Here at Rapid Finance, we have more than  20 years of experience specialising in car loans, home finance and so much more – we’ll match you with the right lender. We’re professional, efficient and reliable so stop dreaming, and start shopping


Ready to take the next step? Start your application online or call 1300 467 274

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