Comprehensive Reporting
What is the difference between negative credit reporting and comprehensive credit reporting?
CCR allows for more information to be collected and reported by a credit bureau I.e. Veda.
However not every subscriber to a credit bureau will be eligible to receive CCR information. Only eligible externally regulated credit providers (including registered credit providers, compliant telcos and utilities) and prospective insurers (that are registered insurers) for the purpose of a decision on the underwriting of insurance in respect of a credit related transaction relating to an individual may access the CCR information. Rules around data quality, standards and reciprocity may further limit those who may access CCR. Authorization from the consumer for disclosure of CCR information by a credit reporter will also be required.
Specifically, in addition to the negative information already collected, CCR will allow for the following additional information fields to be collected and reported on;
- Type of credit account I.e. credit card, personal loan, home loan etc.
- Amount of credit extended i.e. credit limit but not current limit / balance
- Status of account as open or closed (and dates opened and closed)
- Details of credit provider I.e. which lender the loan or credit is with
- 24 months repayment history
Repayment history provides valuable insight into the dynamic nature of account repayment history. From a lender perspective, this information can alert lenders to current hardship or financial struggle and ensure a customer isn't further indebted without having sufficient capacity to repay - hence avoiding further financial stress for the individual.
From a consumer perspective, this history could demonstrate whether current and recent financial commitments have been met or not. In the instance whereby a consumer, for example, loses their job and the situation results in payment defaults being appended to their credit file - these payment defaults remain on a credit file for 5 years.
Repayment history can give the consumer the ability to demonstrate they have rehabilitated their credit facilities I.e. credit card, personal loan etc by showing clear repayment history over a period of up to 24 months and hence may then allow them access to credit (assuming sufficient capacity to repay) notwithstanding the presence of payment defaults.