Comprehensive Credit Reporting (CCR) and how it affects you.

Put simply CCR is a new form of credit reporting that allows credit providers to securely access more of your credit information. CCR helps show people who display sound credit management and can impact your borrowing capacity. Most banks are currently using CCR, so making sure your credit file is as positive as possible is important.  

Lenders consider lots of different things when looking at your credit file. With CCR they can look at the type of credit you hold, the date that credit was accessed, current credit limit, account close dates and payment history. What matters here is your credit management.

It is easy enough to pay off your credit card but having an unused account open can affect your lending capacity. If you know the account won’t be of any use to you close the account down. If your thinking is that the account could be of use for a ‘rainy day’, lower your credit limit. When you close a credit card account or lower your account limit you are showing the bank that you can manage credit and therefore are more likely to be able to access credit in the future.

In addition to this your account conduct can also impact your credit score and ability to access credit. Credit facilities can now access up to 24 months of your payment history and this can include any late or defaulted payments. This means it is highly important that you are up to date with any payments due on all accounts. If you are struggling to make payments it is important that you speak directly to the company you owe the money to or a finance specialist, as these services can help you better manage your accounts.

How might this benefit you?

CCR allows lenders to offer you a better deal based on your unique credit circumstances. CCR could also mean your credit score increases to reflect your sound conduct, therefore making credit more accessible at more competitive rates based on lower risk.

Is there anything I need to do?

CCR means it is more important than ever to make sure you know what is going on with your finances. Keeping up to date with payments and assessing whether the credit you hold is working for you should be done as soon as possible to make sure you are in the best financial position. Keeping an eye on your credit score through sites such as Equifax is also really helpful.

If you are wondering how CCR will affect your lending, get in contact with a Connect Mortgages broker today!