(03) 9020 2905Bugger. Might have to start paying them bills before they turn red. It’s a shame – red is such a pretty colour. Really grabs your attention
If that’s you, then take the new credit/privacy reforms as a wakeup call. If you ever need credit – not just mortgages, but credit cards, mobile phones and utility accounts – then providers are going to have a lot more information about you from March 12.
The previous rules were designed to put a big black mark against your name when you were really naughty. But the new rules will allow credit providers to add little black marks to your rap sheet, as well as be able to award gold stars.
They’re referring to it as “positive” credit reporting. (Hey … nice spin job!)
It will mean that much more information about your ability and willingness to pay your dues on time will be captured – good and bad. If your modus operandi is to wait for bills to turn rainbow colours, or until debt collection notices are issued, then okay, but it will now be on your credit report card.
Debt is a near essential element of living today. So much of our lives are impacted by our ability to access credit.
The big daddy, of course, is getting a home loan. With all the extra info that will be available, banks will be able to get a very clear picture of your “credit score”.
What do you do? It’s really simple. You pay your bills on time. All of them.
And, sadly, the new rules don’t come with a clean slate for everyone.
Bruce Brammall is the author of Debt Man Walking (www.debtman.com.au) and principal adviser with Castellan Financial Consulting.