Your lender wants to know more about you

The Australian credit reporting system needs to be completely overhauled so a lender can find out exactly how much an applicant for a loan or credit card currently owes and how many loans or lines of credit they have now.

The current system of credit reporting only includes defaults and applications for credit and is often described as a ‘negative' credit reporting system. Of OECD nations, only Australia, France and New Zealand retain the negative credit reporting system.

The Australian Law Reform Commission has suggested an alternative system with a range of additional information included. The government is expected to consider changes to the privacy laws to allow more comprehensive credit reporting by the end of the year.

Source: The Age