Is it positive? Is it beneficial? Can it increase your score?
Short answer is yes. New Comprehensive Reporting CAN be positive and beneficial to your credit score. If you are organised, pay every bill on time, have never experienced any hardship or difficulty and have never had any technical issues with a direct debit or repayment on an account.
Unfortunately, if you do have difficulty in paying your bills on time, for whatever reason and you do not make a repayment within 14 days of when it was due, a black mark will be recorded on your credit file and you will be affected by it for up to 2 years.
Unlike Defaults and overdue accounts, there are no notice requirements, no minimum amounts and no warnings for this to occur and it can detriment you for up to 2 years.
Previously, the only “black marks” that could affect you, were defaults and judgements – these are heavily regulated, and a credit provider cannot list a default or a court judgement against you before taking certain steps to notify you.
The stark reality now is that as soon as you are 14 days overdue on an account, a negative imprint will be placed against you by the financial institution which could reduce your score significantly and detriment you for up to 2 years.
To avoid this, make sure you do the following;
(1) Do not over commit
(2) Make your repayments on time
(3) If you are struggling financially, notify the creditor
(4) If you are going to miss a payment for whatever reason, speak to your creditor
Do you have any questions?