How will changes to privacy laws affect my credit report?

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Changes to the Privacy Act mean that the amount of information on your personal credit report will soon increase, providing banks and other lenders with a more detailed view of your credit position.

Although these changes don't take effect until next year, the new information can be collected now, including the details of bill payments made five or more days late.

Currently, personal credit reports held by credit bureaus like Dun & Bradstreet only record "negative" details such as defaults.

changes to privacy laws credit file

From March next year, however, they can also include additional details about the accounts you hold and whether or not your pay your bills on time.

These new details will bring a greater balance to the information seen by credit providers when you make applications for loans and credit.

The addition of repayment history will also help people with a previous default listing to show lenders that they are addressing that slip-up by making regular and on-time payments.

Under the new system, however, a history of late payments will also be more obvious to banks, so it's more important than ever to keep a close eye on your credit report and make sure you pay your bills when they are due.

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