Australia`s four biggest banks recently announced that they would share their customers` complete credit record, while credit information would become more transparent and personal credit records would become easier to view in the future.
You might find it a little hard to understand when you just read the news,
Four big banks join hands to share customer credit records?
Is personal information gradually transparent and ready to be viewed?
What does all this mean?
1. What is the credit evaluation system?
As we all know, Australia is a country that attaches great importance to the personal credit record, and the credit record is also closely related to life, from buying a house, buying a car, down to the daily payment of water, electricity and gas, and the credit record permeates almost every aspect of everyone`s life.
Let`s take a look at Australia`s credit rating system.
Credit system (Credit Report System)
The credit system will evaluate the credit index for customers of all banks in Australia.
After the assessment, when an individual applies for a loan, the credit system determines whether or not to lend through a lender`s assessment report.
That is to say,
If your credit index is good, you will be able to lend more money to the bank!
If your credit index is low, it will be difficult for you to lend to the bank!
I can`t even borrow!
Looks like a good credit record is really important!
2. Establishment of credit system
In fact, as early as the end of 2017, Morrison, then the fiscal minister, planned to introduce a policy:
"forcing all banks and institutions to adopt credit reporting systems to keep personal credit information fully transparent."
But the policy was rejected by the Senate at that time for a variety of reasons.
But soon after, NAB Bank and ANZ Bank began to synchronize their customer data, while Mike Laing, president of the Australian Retail Credit Association, said:
"four major banks, the main trend credit agencies released their customer data, credit data transparency is an unstoppable trend in the future."
When the four banks work together to interact with each other, the transparency of the data makes it possible to better assess the amount of credit an applicant has made and how much he or she is repaying his credit.
It is understood that the first batch of information provided 95% for credit card holders.
After formally joining the program, at least 50 percent of bank customer information must be provided and the remaining 50 percent will be provided within December.
May see here, people will be a little worried! Data transparency? Is personal credit information leaked or credit system gradually sound?
[2542A976-2E46-2463-CFF2-FC8895EBF998]
That is to say,
When do you lend?
How much did you borrow?
Do you have a record of overdue payments?
..........
This information,
Banks and credit institutions will see it clearly.
From then on, the word "fluke escape" will not exist in the piece of personal credit.
But before that, because of the lack of transparency in credit information, people often switched to banks, running multiple credit cards and using the way of "demolishing the East Wall, mending the West Wall" to escape the bank`s repayment.
The loopholes in credit institutions cause huge losses to banks and credit institutions.
And over the next six months, the other three banks will share the credit-sharing system at the same time.
As long as you have an Australian bank card, your credit information will appear in the credit agency`s database.
From then on, personal integrity records will be clearly seen!
Credit records ranging from mortgage and utility payments are clearly recorded.
And since then, not just Australian banks, but other banks will share the records, and Citibank, HSBC, and similar financial institutions like RateSetter.com.au will share the credit data.
The real age of data sharing is coming!
4. Check your credit records in time!
The full transparency of the data may cause a bit of unease, and the complete transparency of personal credit records, does this mean that a small move will also affect your credit record in minutes?
However, sometimes people do not deliberately default, but sometimes some of the fees will be forgotten without paying attention, will it also affect the personal credit record?
Australia`s banks are not so harsh as to make sense, and occasionally overdue within the limits of control, it does not matter.
According to overdue records in place:
1. Records of overdue payments of 14 days or more will be retained by credit institutions for two years.
2. If the amount exceeds $150 and is not repaid in 60 days, it will be considered a record of default and will be recorded for up to five years.
This means that in the future, people should remember to review their credit records at any time.
A good credit record, in the era of information transparency is too important!
