Your finances can get a bit out of control sometimes for all sorts of reasons. Whether it’s through illness, divorce, redundancy, or sometimes just getting overwhelmed with things to do and accidentally missing a bill payment. The end result can be that you get put in the bad credit basket. Even if you sort it out and pay the overdue bills or fix up a default on a loan repayment, it can still end up on your credit file. (a record of your credit history maintained by credit reporting agencies like Equifax)
Positive Credit Reporting – What it means for you
Positive Credit Reporting also known as Comprehensive Credit Reporting (CCR) is a reporting system whereby lenders share more of your data with credit bureaus such as Equifax and Experian. This in turn will be listed on your credit report.
In the past, the only information that was mandatory to share was Negative Credit Reporting. It wasn’t until 1st July 2018 when it was made compulsory for the big banks to share at least 50% of your positive credit data with credit bureaus. By 1st July 2019 this amount will be increased to 100%.
Credit Card Debt & Balance Transfers
Australia’s national credit card debt is $32 billion and rising (Reserve Bank of Australia, May 2018).
It’s understandable that people find themselves struggling to pay off their credit card balance when there are so many enticing offers out there encouraging people to have just one more card.
Many people take advantage of credit cards that offer reward points or frequent flyer miles. These types of cards can be considered a useful resource, however it’s important to realise that interest rates could be as high as 17.99% & if you don’t pay off your bill in full each month your interest charges could become expensive.