Just the facts on some important changes that impact Credit products

Over the next year, a progressive range of reforms will take place that will impact Australian Financial Institutions. To help explain these changes and what they may mean for you, Greater Bank has developed some key facts to keep you informed.

These changes will impact two areas. Firstly, the sharing of credit history with credit reporting bodies. This is called Comprehensive Credit Reporting (CCR) and Greater Bank has chosen to be part of the CCR program as we believe increased visibility of a customer’s total credit history will allow us to make even more competitive offers.

The second change relates to the way interest is applied to purchases on your credit card.

1. Credit history data sharing

What is changing?

Historically, credit providers shared only limited customer credit history data which was typically ‘negative’ data such as default instances in relation to a default or when a credit application has been submitted.

CCR will allow the sharing of both ‘negative’ and ‘positive’ credit data, such as on time repayments, providing a more balanced credit history view.

What additional information will now be available to credit providers?

Credit Report

Right now we see your personal information, like name and date of birth, as well as your credit information, such as any application for credit, overdue debts, and any serious infringements. In some instances we also see publically available information should you have a personal insolvency or any court actions.

After this change, we will see a listing of your credit accounts, with open and close dates, the type of credit you applied for and the current credit limit. In addition, we will receive data on your repayment history from other credit providers.

As a participant of CCR Greater Bank will also be sharing your Greater Bank credit account history with other credit providers.

Check out a sample report.

More about your Credit Report and How to Access it?

Credit Score

To make sense of all this information, credit providers often rely on a credit score to supplement the credit report. The credit score is a way to predict how the customer might behave with future credit products.

So what has changed? Your credit score will now be determined using a broader information set that includes both negative and positive credit history. Taking in to account both positive and negative behaviours may have an impact on your credit score.

Our affiliated credit reporting bodies have prepared a handy overview of how they complete a credit score.

More about your credit score and how to check it?

FAQ's

What it means for you

At Greater Bank, we understand the sensitivities around sharing personal information and we take your privacy very seriously, so please be assured we will continue to comply with our published privacy policy. Furthermore, we will now be able to assess your application with a better understanding of who you are, e.g. A negative credit event can now be balanced against all the positives.

Ways to protect your credit score and report

1. Maintain a good repayment history.

Make at least the minimum payment as displayed on your monthly statement on, or before, the due date.

Take away the stress of paying your bills on time by setting up your accounts to be paid automatically, a process you can now do via our app

2. Only apply for credit that you really need.

Only apply for credit when you need it and be wary of promotional deals that may save you a small amount in the short term, but which may impact your future credit applications.

3. Troubleshoot to your credit provider.

Let your credit provider know if you are having difficulty making payments as soon as possible. We are here to help and can discuss short-term options as well as ways of getting you back on track.

Don’t like your credit report or credit score?

Sometimes you don’t know that your Credit Score has been impacted until it too late. In addition to the above suggestions, the MoneySmart website provides some great information on what you can do to change your Credit Report or Credit Score. Check it out here for some helpful tips.

You can request one free copy of your credit report annually, via our credit agency, Equifax.

Want more information?

These sites will provide you with more information:

2. The way interest is applied on Credit Cards

What is different and how?

From 1 January 2019 the way Credit Card interest is calculated on purchases that have enjoyed the benefit of an interest free period is changing. Right now if your Greater Bank Visa Credit Card had the benefit of an interest-free period for the previous month, but you don’t pay your credit card balance in full by the due date for the current month, then you will be charged interest from the date you made your purchase.

After the change we will only charge you interest from the day after the payment due date. This means you may pay less interest than you would now.

What it means for you

This depends on the type of credit card user you are.

You always pay your balance in full by the due date every month

If you keep this same approach with the balance being paid in full by the due date every month you will not be directly impacted.

You don’t always pay your balance in full by the due date every month

If you qualify for an interest-free period but this month you don’t pay your full monthly balance by the due date, then you will be you will be charged interest from the day after your payment due date.