What are the benefits of Comprehensive Credit Reporting for me?

The comprehensive credit reporting system gives New Zealanders more power to demonstrate credit worthiness and manage their credit profile.

• Highlights good credit behaviour: You will be able to demonstrate recent good credit behaviour because the Comprehensive Credit Reporting system records if you have made your credit payments on time.
• Faster recovery from adversity: You may improve your credit profile more quickly after an adverse financial event by showing good credit behaviour, potentially countering the impact of a default which may be up to five years old.
• Quicker to establish a credit report: For individuals new to consumer credit, the use of comprehensive information means that you can build credit worthiness more quickly. For example, if you are a young person or a recent arrival from overseas.
• A more balanced system: It is a more balanced and transparent system for consumers who already have a good credit history, as well as those who previously had trouble meeting their financial commitments – as it may enable them to access quality credit where they may not have been able to previously.
• A better deal with providers: With more complete credit bureau information and monthly updates, having a credit profile and showing good credit behaviour may become important in accessing credit at the best price.

From a consumer perspective, this repayment history could demonstrate whether current and/or recent financial commitments have been met or not. In an instance where a consumer, for example, loses their job and the situation results in payment defaults being loaded onto their credit file - these payment defaults remain on their credit file for five years.

Repayment history gives the consumer the ability to demonstrate they have rehabilitated their credit behaviour and facilities e.g. home loan, credit cards, personal loan etc. by showing a clear repayment history over a period of up to 24 months. This may then allow consumers' access to quality credit (assuming sufficient capacity to repay) notwithstanding the presence of payment defaults.

As it will take time for this new credit data to build up, the above benefits are likely to take some time to evolve.