Comprehensive Credit Reporting

Definition of 'Comprehensive Credit Reporting'

Comprehensive Credit Reporting - or CCR for short - is the term given to the sharing of account history information by lenders in Australia, which began in March 2014.

Every month, lenders provide the credit reference agencies with details of their customers, balances, limits, the status of the account (whether up to date or how many months in arrears) and much more information. These account histories are then made available to other lenders via the credit reference agencies. Eventually, a more comprehensive system of credit reporting in Australia will be built by 2020.

The US and UK have similar credit reporting systems which have been in place since the early 1980s, so once Comprehensive Credit Reporting has been in place for a few years, this change will revolutionise Australia's credit reporting system.

The sharing of account history between lenders enables lenders to make a more informed, balanced and accurate decision on who to extend credit. Comprehensive Credit Reporting provides a framework for regulators to ensure that lenders are socially responsible when lending monies. It helps to prevent over-indebtedness, and provides lenders with the ability to 'price for risk' - ensuring that those who always keep credit arrangements up to date are rewarded with lower interest rates.

Consumers benefit from Comprehensive Credit Reporting by not having to subsidise risky loans, and lending decisions are much quicker. Credit scorecards using data from Comprehensive Credit Reporting also enable lenders to extend credit to those who are not risky, but where manual, subjective credit assessment would normally have led to a decline of an application.

There is absolutely no doubt in our mind that Comprehensive Credit Reporting is well overdue, and is a very good thing for both lenders and for consumers.

Use the links below to locate the term you are looking for. If you can't locate it, please get in touch.

Credit Jargon Starting 'G'

Credit Jargon Starting 'I'

Credit Jargon Starting 'J'

Credit Jargon Starting 'L'

Credit Jargon Starting 'M'

Credit Jargon Starting 'S'

Credit Jargon Starting 'T'

Credit Jargon Starting 'V'

Credit Jargon Starting 'W'

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