What Is Comprehensive Credit Reporting

Having a complete view of your credit history can make a big difference when applying for a loan or credit card. Comprehensive Credit Reporting (CCR) captures both positive and negative credit behaviours, helping lenders assess your reliability and offer better loan terms. Here’s everything you need to know about this type of credit reporting.

CCR is a modern credit reporting system that gives a full picture of your credit history. It showcases both positive and negative financial behaviours. Unlike traditional credit reporting methods, which focus mainly on defaults and overdue debts, CCR includes positive repayment patterns. Some of these include:

• Repayment history for credit cards, loans, and bills

• Types of credit accounts, including Buy Now Pay Later products

• Lenders/issuers to whom you have applied for a new credit card or loan

• Dates of credit applications, openings, and closings

• Current credit limits on your accounts

 

This enables lenders to assess your creditworthiness more accurately. It supports better-informed lending decisions, helping lenders set appropriate loan terms and giving you a fair chance at credit approval.

Here are some reasons why comprehensive credit reporting is important:

Accurate Representation

By considering all aspects of your credit behaviour, CCR provides a comprehensive view of your profile. This results in a more accurate representation of your financial situation and repayment abilities. It further highlights your improvement over time in case of default or bad repayment history in the past. 

Better Access to Credit

The CCR provides a clear picture of your past and current credit behaviour. This enables lenders to get a better understanding of your financial situation and repayment capabilities. If you are facing financial difficulties, CCR allows lenders to assess your situation comprehensively.  Based on this evaluation, they can offer tailored solutions rather than rejecting your application due to negative past behaviours.

Affordable Interest Rates

Your repayment history and Debt-to-Income (DTI) ratio are taken into account in the CCR method. Thus, if you have repaid all your dues on time and managed your credit efficiently, your creditworthiness increases. This makes you a low-risk borrower, enabling you to enjoy better terms on your credit options like lower interest rates. This can make the loan/credit card cost-effective and easy to manage.

Here are some things which are included in your credit report with the CRR:

• A 5-year record of different types of credit accounts you have opened

• Your repayment history of up to 24 months

• The dates when you opened and closed all your credit accounts 

• Credit limits of your credit cards and disbursed amounts of the loans taken