The changes in Australia will, over time, allow licensed credit providers to access more comprehensive information that can help them make better lending decisions.
In the previous negative credit reporting system, your credit report would have shown that you had made applications for consumer credit or commercial credit (that is, credit for business purposes if you run a business) – but not whether the credit you applied for was approved or not. If you were given credit, your credit report also wouldn’t have shown whether you kept up-to-date with your repayments, but it would have shown if you had defaulted on your credit obligations.
In the new comprehensive credit reporting system, your credit report may contain more information that can be accessed by you and by those organisations specifically permitted by the Privacy Act. The Privacy Act also sets out what information in credit reports can be used for, and who it can be shared with.