With most major banks and lenders adopting Comprehensive Credit Reporting (CCR), it is crucial to understand how this impacts your chances of securing a home loan. 

Key Points: 

• Complete Credit Picture: CCR offers a comprehensive view of your financial situation, allowing lenders to align the credit you seek with your circumstances. 
• Impact of Repayment History: A poor repayment history, including late or missed payments, can diminish your approval prospects for a home loan. Such information stays on your credit file for years. 

• Additional Information Recorded: Under CCR, your credit history includes the opening and closing dates of credit accounts, the type of credit (credit card, personal loan, mortgage), current credit limits, and a 24-month repayment history. 
• Overdue Payments and Defaults: Payments more than 2 weeks overdue are marked as late repayments, visible for 2 years. Amounts over $150, exceeding 60 days overdue, are considered defaults, remaining on your file for 5 years. 
• Lender Participation: Not all banks and lenders have embraced CCR. Specialist lenders and major banks outside CCR can assist those with bad credit.

Late Repayments under CCR: 

• Any payments exceeding 2 weeks overdue are recorded as late, with a 14-day ‘grace period.’ 
• Paying within this period prevents late payment notation on your credit file. 
• Late payment information persists for 2 years post the grace period. 
• Bills or repayments over $150, more than 60 days overdue, become defaults, staying on the file for 5 years. 

Benefits and Drawbacks of CCR: 

• Positive Aspect: CCR allows borrowers to recover from a previously negative credit file, providing an opportunity for improvement. 

• Negative Aspect: Individuals previously on the brink of poor credit scores may now face challenges as their credit history is closely scrutinized. 

Cautions and Recommendations: 

• Credit Score Check: Regularly check your credit score using a credit score calculator and consult mortgage brokers if the score is low. 
• Judicious Credit Applications: Only apply for credit or a loan when necessary, choosing lenders with a pragmatic approach. 
• Financial Responsibility: Make all repayments on time, set up direct debit, and manage credit responsibly. 
• Addressing Defaults: If defaults exist, approval chances improve if the last 2 years’ repayment history is flawless. 
• Job and Address Stability: Maintain stability in your job and living address until applying for a loan, as this information influences credit scores. 
• Communication with Credit Provider: If facing financial challenges, communicate with credit providers to explore payment plans. 
• Debt Consolidation: Consider debt consolidation for managing repayments across multiple facilities. Seek advice from mortgage brokers for the best approach. 
• Accurate Credit File: Ensure your credit file is accurate and up-to-date. Mortgage brokers can help obtain a free copy for assessment. 

Lender Enquiries and CCR Codes: 

• Lenders making CCR enquiries receive a month-by-month breakdown of your 2-year repayment history, with specific codes or scores assigned. 

CCR Codes and Meanings: 

• O: Account paid on time or within the ‘grace period.’ 
• 1 to 6: Gradually increasing levels of overdue payments. 
• X: Overdue by 180+ days. 
• C: Account closed. 
• A: Not associated. 
• R: Not reported. 
• P: Pending. 
• T: Transferred. 

Understanding CCR is vital for maintaining a favorable credit profile and enhancing home loan approval prospects. Regular financial responsibility and strategic credit management are key elements in this process.