On Monday, National Australia Bank (NAB) rolled out Comprehensive Credit Reporting (CCR) for personal loans, credit cards, and overdrafts, as originally announced in October 2017. Later this year, other types of lending will be added.
NAB is the first major bank to participate in CCR, well ahead of the federal government’s mandatory scheme. CCR makes it easier for lenders to make a comprehensive and balanced assessment of an applicant’s credit history.
For decades, a credit report has contained only negative information, such as defaults on loans and how many credit inquiries were made. With CCR, positive credit information will be added, including which accounts had been opened, credit limits on those accounts, and details on monthly payments made as well as missed.
Utilising CCR will provide a clearer picture of a customer’s situation, enabling lenders like NAB to more successfully match their provision of credit to a customer’s individual needs.
Antony Cahill, CEO of NAB, said his bank has taken a leadership position on CCR since the start.
“Under Comprehensive Credit Reporting, we now have a more holistic picture of a customer’s credit situation, so we’re better able to make sure our customers receive the right type and amount of credit for their individual circumstances,” he said.
“We believe CCR is good for competition, and will mean better outcomes for customers.
“A number of smaller players have been participating in CCR already, and the Government recently released draft legislation to make it mandatory for all the major banks.
“We’re pleased to be going live with CCR today, and we look forward to seeing it roll out across the industry.”
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Collections: Mortgage News