In 2015 Australia will begin a new system of credit reporting that will benefit those who have good credit behavior. Before it was only bad credit behavior that was reported and it would outweigh any good behavior that was not being reported on my credit file. Throughout the financial crisis many people have had knocks on their credit which stays on there for years. New credit reporting will now make it to where positive credit behavior can bring up my credit rating.
By having both the positive behavior as well as the negative behavior, lenders will be able to make a more comprehensive decision when it comes to my credit file. Before, lenders where limited to only seeing when I had negatively affected my credit rating but now I can combat those past mistakes with paying off a loan over time. Now, lenders will be able to see two years worth of month by month payments and make a more complete decision about a possible loan I am applying for.
My Credit File But Better
My credit file can now be positively impacted by taking on a new loan and making the payments on time and getting a positive outlook on my credit rating. When other lenders see that I am able to take a loan and pay it off on a regular schedule then I will have a much greater chance of getting a loan that I need.
The new positive reporting credit system is actually going to allow my credit file to recover from the adversity I faced over the last several years. Even taking on small loans and getting them paid off on time will help. Eventually those who have faced financial hard times will be able to see the light.
Even just having a loan approved will go towards helping out my credit file. Lenders have incentives to report positive behavior as well. Not only will lenders be able to have full access to the credit filings of borrowers but with positive behavior being rewarded, lenders will have more reasons to make more loans to those who have proven that they can handle them.
Positive credit reporting will have a big impact on the lenders and those who need the loans. My credit file will have a positive outcome and now those who have proven that they can responsibly handle loans will have the ability have the loans needed to have a bright future.