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A new study commissioned by CreditSmart, which surveyed 1,026 women, has found that 89 per cent were oblivious to the changes occurring in the credit reporting space, such as the mandatory comprehensive credit reporting (CCR) regime, and 65 per cent of women had never checked their credit report.
Further, 55 per cent of respondents were found to be either unaware or hold incorrect views on the cost of accessing a copy of their credit report, while a quarter were completely incognisant of what a credit score is.
As such, the consumer education website claimed that women are “missing opportunities to optimise their credit health and make themselves look good to lenders”, especially as the lending industry adapts to CCR reforms.
As part of the CCR reforms, introduced under the National Consumer Credit Protection Amendment (Mandatory Comprehensive Credit Reporting) Bill 2018, the big four banks are required to provide 50 per cent of their CCR data to credit reporting bodies by 30 September 2018, and 100 per cent by the same date in 2019.
However, CreditSmart noted that the study was conducted in March this year, before the CCR regime was open for consultation and then enforced.
Rebecca Murray, general manager at the Australian Retail Credit Association, which founded CreditSmart, said: “It is really important for women to be across these upcoming changes so they can take advantage of the changes rather than potentially be negatively impacted.”
She continued: “Going forward, your credit report will become a personal asset which will hold you in good stead for when you need to take out a loan, as lenders will be able to track your account repayment habits on your accounts to assess your creditworthiness.”
Ms Murray highlighted the importance of consumers knowing their credit rights, such as free access to their credit report annually from credit reporting bodies such as Equifax, Experian and illion.
“How to use credit responsibly is everybody’s business, irrespective of gender. People with good credit health will be rewarded with more choices of loan products and possibly lower interest rates, so get to know your credit report, fix it if there is something wrong and pay your accounts on time to get the credit you want, when you need it,” the GM said.
Earlier this month, a survey of 1,011 Australians conducted by Experian found that 60 per cent of respondents were unaware that their credit provider is sharing more of their data off the back of the federal government’s mandatory CCR regime.
Experian’s Australia/NZ executive general manager, credit services and decision analytics, Poli Konstantinidis, warned: “Confusion and lack of awareness about credit score changes mean borrowers with a strong credit history could be missing out on their chance to access lower rates of interest.”
As part of Momentum Media’s continued dedication to the finance industry, The Adviser — in partnership with its sister publications — last year launched the inaugural Women in Finance Awards.
This flagship event returns again this year, once again partnered by NAB, to highlight the outstanding work of women within financial services and put them on a national stage to support the continuing growth and development of women in the financial arena.
A total of 29 awards will recognise individual and group performance, across a range of categories, including Mortgage and Finance Broker of the Year (last year won by Deslie Taylor of Mortgage Choice Ormeau).
Join hundreds of inspiring and talented female leaders within the finance community at the annual Women in Finance Awards on Friday, 20 September.
Come along to this fantastic black-tie event and show your support for the continuing growth and development of gender diversity in the workplace.
Tickets are in high demand, so secure your ticket here today before they sell out!
[Related: Submissions open for Women in Finance 2018]
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