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There will be a major change to the way that your credit rating is shared with financial institutions. From the 12th of March 2014 the credit reporting agencies (such as Veda) will be monitoring and reporting on the timeliness of your bill payments!

Currently your credit report shows the following items:

  • Loan applications
  • Loan application credit limits
  • Credit defaults

Under the changes from 12 March, 24 months of payment history for loans, credit cards and other types of credit will be available. Late payment over five days on any of the above will land on your credit report. This will potentially have disastrous effects on some people’s ability to gain future credit if they have a bad history of paying bills.

Most of the big four banks have already provided their customers with brochures and guidelines about the upcoming changes. However, an alarming 59% of people are unaware of the changes altogether and certainly don’t know what they mean.

Telcos and utilities won’t be able to provide late payment information. However, they will be able to see it and they will be able to provide the type of credit you have applied for, the credit limit, the day of commencement and the day the credit is terminated.

Everyone should take the following steps to keep a good credit report going forward:

  • Pay your loans and credit cards on time every month. Consider breaking your payments down into weekly amounts.
  • Take advantage of your free annual credit report from Veda Advantage
  • If there is a mistake and the credit provider wont assist, seek help from the Financial Ombudsman Service or the Credit Ombudsman Service

This information will increase in volume starting from 12 March and we can expect all credit/ financial institutions to be supplying this information within 2 years.

04 Mar 2014
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