Comprehensive Credit Reporting

The transition to Comprehensive Credit Reporting (CCR) is something that all credit providers will need to do to ensure that they are using the complete set of available data during the risk assessment process.

Traditionally credit providers shared what is known as ‘Negative’ data with the credit bureaus. This is information about customers who have failed to meet their payment obligations and gone into formal default. The introduction of Comprehensive Reporting extends the information shared by credit providers to include more data elements and requires the credit provider to submit and update the data on a monthly basis.

Data provided on a regular basis now includes the following datasets:

• Account Information
  • Account Type
  • Credit Limit/Loan Amount (new comprehensive information)
  • Open/Closed Dates (new comprehensive information)
  • Payment Methods/Type (new comprehensive information)
  • Term of Loan (new comprehensive information)

• Default Information
  • Date of Default
  • Amount of Default
  • Status of Default

• Repayment Information
  • Payment Period (new comprehensive information)
  • Payment Status (new comprehensive information)

• Account Holder Information
  • Personal Details of the Account Holder

For credit providers who are providing data via the CCR program, the real benefit comes in their ability to access other data submitted by all credit providers engaged in the program. The credit bureaus hold this data and share it between all credit providers who are participating. This enriched dataset allows credit providers to utilise this data when making decisions about the approval of a new credit product.

The availability of a deeper data set when considering credit applications means better decisions for credit providers and more targeted, risk appropriate, credit offerings for consumers.

There are three key projects to the successful transition to CCR

1. Provision of CCR data to the credit bureaus
2. Updating IT systems to request CCR data when doing a credit enquiry at point of origination
3. Scorecard and policy rule analysis to make use of the new data in the decisioning process

Comprehensive Credit Decisions can guide you through all three projects to ensure measurable business benefits can be achieved.

For further information on Credit Services (including Comprehensive Reporting), visit CreditSmart.