CREDIT REPORTING
The Power of Credit Reporting
Comprehensive credit reporting was introduced in Australia to provide a clearer picture of your credit history. Previously, your credit report mainly showed your bad behaviour, such as defaults, other credit infringements, and bankruptcies. Your comprehensive credit report also includes positive information, like your repayment history. So if your credit report or credit history shows that you manage your debt well, this is viewable to credit providers. These changes may make getting credit or a loan easier- or harder for some people.
Suppose you have been paying off your credit card and loans on time. Credit providers can check if the credit you applied for is right for you. Better still, they may offer a loan with an interest rate and repayment schedule tailored to your circumstances. In that case, this positive history will count towards your creditworthiness - as you have demonstrated your ability to manage debts responsibly.
For more information on Comprehensive Credit Reporting, visit this website: https://www.creditsmart.org.au/comprehensive-credit-reporting/ or call us on 1300 999 787 or 07-35351700.
Encourages Prompt Payment
Listing a default on a debtor’s credit file is a powerful motivator. The potential impact on their creditworthiness often compels debtors to settle outstanding accounts quickly, helping you recover funds faster and more efficiently.
Protects Your Business
By reporting overdue accounts, you help create a more transparent financial environment. This protects your business and others from engaging with high-risk clients who have a history of non-payment, reducing the likelihood of future losses.
Reinforces Accountability
Credit reporting holds debtors accountable by creating a formal record of unpaid debts. This not only strengthens your position during negotiations but also ensures there's a lasting consequence for failing to meet financial obligations.
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Encourages Prompt Payment
Listing a default on a debtor’s credit file is a powerful motivator. The potential impact on their creditworthiness often compels debtors to settle outstanding accounts quickly, helping you recover funds faster and more efficiently.
Protects Your Business
By reporting overdue accounts, you help create a more transparent financial environment. This protects your business and others from engaging with high-risk clients who have a history of non-payment, reducing the likelihood of future losses.
Reinforces Accountability
Credit reporting holds debtors accountable by creating a formal record of unpaid debts. This not only strengthens your position during negotiations but also ensures there's a lasting consequence for failing to meet financial obligations.
