Bright new day for responsible spenders

A BRIGHTER credit future is on the horizon for diligent Australians, with positive data to be shared mandatorily on credit reports as of July 1.

Previously, limited customer data shared by lenders was mostly focused on negative aspects, such as high credit card limits, which may have hindered credit applications.

But comprehensive credit reporting – which has existed voluntarily since 2014 – will mean banks must share 50 per cent of a customer’s data with credit bureaus, rising to 100 per cent in July 2019.

Lender SocietyOne’s chief marketing officer Maria Loyez said this means the sharing of positive habits like paying bills on time or reducing card limits may improve someone’s credit report and help them access better deals.

“A lot of people will see their credit scores improve,” she said.

“And people just starting to build a credit history will be able to do so more quickly.”

Newlyweds Laura and Sean Metcalfe have purchased a house but are soon to be relocated to Italy for work.

The Metcalfes are currently maximising positive repayment behaviour, knowing they will need to pay rent overseas while maintaining mortgage repayments in Australia.

Australian Retail Credit Association’s chairman Mike Laing said it is a perfect time to better understand credit reporting.

CreditSmart research found 88 per cent of Australian consumers know banks checked credit reports when assessing loan or credit applications, but a quarter didn’t know what they checked it for.