Information on ALI Group's response to COVID-19 Find out more

Make a claim Search

Understanding the credit reporting changes in 2018

Understanding the credit reporting changes in 2018

There has been a lot of conversation about Comprehensive Credit Reporting (CCR) in recent months, though there is still some confusion surrounding the impact this will have on Australian consumers. 

Thankfully, it’s not quite as complicated as some would make out and you’ll be glad to hear that there are some real benefits to be felt by consumers across the country. So, we’ve made things simple and highlighted the most essential points on the credit reporting changes for your convenience. 

What's going on with Comprehensive Credit Reporting in 2018?

Comprehensive Credit Reporting is due to come into effect in a noticeable way during mid-2018. As of 1 July, major banks will be required by law to share 50% of your credit information with lenders. This will be increased to 100% on 1 July 2019.

In the past, lenders used a system known as Negative Credit Reporting in order to evaluate potential borrowers’ eligibility for loans. Essentially, this system used only the worst data from a person’s credit report, leading to many being turned down for loans without lenders really looking at the whole picture. 

Fortunately, lenders now have a whole wealth of new information to aid their processing of loan applications. There are quite a few benefits for consumers when it comes to the credit reporting changes, including:  

Better opportunities to borrow from lenders

Young Australians looking to get loans have often come up against issues if they have short credit histories. However, with the new Comprehensive Credit Reporting system, lenders can examine a larger pool of credit data and give those with shorter credit histories better opportunities to secure loans. 

Your positive behaviour is recorded by lenders 

With your good and bad credit data now being tracked by lenders you can expect to have a far fairer and informed decision made on your loan application. If you happened to miss a payment on a debt when you were younger, you won’t be penalised as you once were as lenders can now look at your more recent positive credit history too. 

Messing up once won't ruin your credit score

Almost everyone has a slight blemish on their credit record from some point in time. In the past, this could have seriously cost you when trying to secure a loan of some kind. More often than not, a missed repayment or something similar would haunt you forever. But, this isn’t the case with the Comprehensive Credit Reporting system as lenders have far more accurate credit information at their disposal. 


There is a lot to be happy about with the new Comprehensive Credit Reporting system, however, it’s important to consider whether you are financially protected when taking out a loan, especially on a mortgage. Find out how an ALI Group Mortgage Protection Plan may secure your loan repayments if a serious life event should befall upon you. 


Loan Protection Plan is jointly issued by Hannover Life Re of Australasia Ltd ABN 37 062 395 484 (Death, Terminal Illness, Living and Accidental Injury Benefits) and QBE Insurance (Australia) Limited ABN 78 003 191 035 AFSL 239545 (Involuntary Unemployment Benefit). It is distributed by Australian Life Insurance Distribution Pty Ltd ABN 31 103 157 811 AFSG 226403 (ALI). ALI receives commission for each policy sold. Any advice provided is of a general nature only and does not take into consideration your personal objectives, financial situation or needs. You should consider the Product Disclosure Statement when deciding if this product is appropriate for you.

You may be also interested in


"If the cancer doesn't kill you, having no money will".

October is Australia’s Breast Cancer Awareness Month – and an important time for women, men, young a ...

Read Story

ALI Group pledges $25 for every new male policy this November

We are donating $25 to Movember for each new male policy taken out in the month of November, through ...

Read Story

How the she'll be right attitude could cost you more than your health

There is a lot of information about the health issues affecting thousands of Australians every day, ...

Read Story