Changes to your Credit Report and How they Affect you

CHANGES TO YOUR CREDIT REPORT YOUR CREDIT REPORT Credit Report 1 in 10 Australians have a black mark Apply for credit You have a credit report Credit report is checked by the lender To assess whether or not you are likely to pay in the future Prior to changes to the Privacy Act, only negative information, such as overdue accounts and defaults, were listed on your report. There was no positive information, like early payments, to outweigh the bad Prior to 12 March 2014, Australia was one of the only countries in the world to follow a negative credit reporting system OVERDUE SHIFT TO COMPREHENSIVE REPORTING Due Date: Amount Due: These changes to the Privacy Act will mean that banks and other lenders will be able to share a lot more information about you, through your credit report ----------------- The biggest change is the addition of Repayment History Information Biggest change in Payment Date: Credit Limit: 20 ER YEARS WHAT CAUSES DEFAULTS Mobile phones, landlines and broadband Baby Boomers Others 13% 23% 40% BILL 43% Generation Y Credit Report BILL BLL 15% $ Loans , 22% Utilities Generation X 44% MOST PEOPLE WITH “BLACK MARKS" TOP CAUSES OF DEFAULTS ON THEIR CREDIT REPORTS NEW INFORMATION THAT CAN BE LISTED As of March 2014, positive information can also be included in credit reports. Creuit Report In addition to all of the old information: The date your account was opened and closed Opening Date: Closing Date: • Your monthly repayment history. This means that credit providers can now see if your payments are made on time JAN: FEB: MAR: The maximum amount and type of credit available to you (such as a personal loan or credit card) APR: CREDIT AVAILABLE: The repayment history information will go back 24 months. In addition, the amount of time a bankruptcy or debt agreement will show on a credit report has been changed from a minimum of 7 years to a minimum of 5 years from date of acceptance THE GOOD THE BAD Repayment history information will shoW if you are more than 5 days overdue, New Repayment History Information could potentially show your good payment habits,instead of just payments you've missed OVERDUE instead of 60 days You may find yourself getting declined for poor payment habits If you have a good repayment history, you may be able to negotiate a better interest rate with your bank You may have to pay a higher interest rate based on your past payment habits WHAT SHOULD I DO0? Pay your bills on time, if not a few days early Have a payment system, such as an automated electronic Discussing your finances with Set a household Check your credit report for any "black marks" budget your partner can aid in paying your bills on time debit system Credit Repair Australia is by far the oldest, largest and most successful credit restoration and debt solutions company in Australia The company has assisted over 150,000 Australians in taking control of credit ratings and debts Source: Credit Repair Australia 2014 O 13 FIXED (133 493) A www.creditrepairaustralia.com Credit Repair Australia® First Choice, fora Second Chance --------