From 1st July, a new policy on information sharing between banks and credit providers became mandatory, which may have implications when you wish to borrow money in the future.
Known as Comprehensive Credit Reporting (CCR), lenders are now required to share their customers’ full credit history with each other, including both positive and negative data about your financial past.
Your information will be securely held and managed by Credit Reporting Bodies, such as Equifax, and shared with lenders when you apply for a loan.
Initially, CCR was only required between the ‘big four’ banks, however, we are starting to see smaller lenders adopting the new policy.
The good news is that, where previously your credit history would have only highlighted negative information (loan defaults, bankruptcy etc), CCR will also include your ‘good’ history so that lenders have a much clearer picture of your financial background.
So how do you ensure a good credit score?
Firstly, and most obviously, make sure all repayments are made by the date they are due. Even late payments will affect your score.
Second, protect your rating by doing your own checks to make sure that the information contained in your credit record is correct – To get a free copy of your credit score from Equifax, click on this link.
Don’t allow mistakes or even a case of identity theft to affect your credit history. If there is incorrect information, contact Equifax to have it corrected.
If you’d like to know more about Comprehensive Credit Reporting and how to maintain a favourable credit history, please click here.