Changes to credit reporting in Australia

Find out what the changes to credit reporting will mean for you.

Prior to the introduction of CCR:

  • credit providers only reported information such as new credit enquiries (for example new loan applications) and payment defaults to credit reporting bodies, and;
  • a person’s credit report only contained limited information about their credit history with a focus on negative incidents such as overdue debts, bankruptcy or court judgments.

Following the introduction of CCR:

  • credit providers will report additional information to credit reporting bodies such as dates a customer opened and closed their personal credit account(s), account types, current credit limit on each customer account and repayment history information, and;
  • a person’s credit report will contain a more comprehensive view of their financial situation because it will include positive as well as negative information about the person’s credit history.

Why is the CCR important?

Community First is a strong supporter of CCR as it is a key component of responsible lending by giving credit providers a clearer and more balanced view of a person’s credit history and their ability and willingness to repay their debts in a timely manner.

CCR encourages and, in some instances, rewards borrowers that consistently meet their payment obligations in a timely manner, by increasing a person’s credit score. It is therefore more important than ever to pay your bills on time so your repayment history information is shown favourably on your credit report.

What is a credit report?

A credit report shows a person’ financial behaviour. It includes things like a person’s credit history, the credit accounts they hold and their credit score.

Credit providers use this information to help them decide whether to give you credit. However, they are not the only ones who can benefit from your credit report – you can too. Understanding your report may help you improve your credit score, which could mean access to lower rates of interest or credit you need to achieve your goals.

The Australian privacy laws govern what information can be included in your credit report, who that information can be disclosed to, how you can access that information and how you can seek the correction of any errors. For more information on accessing, correcting or managing your credit report, click here.

What is my credit score?

A person’s credit score is a statistical representation of how likely an individual is to conduct their loans in a proper manner and is calculated based on the credit information in your credit report.

Your credit score is based on a significant number of factors, including (but not limited to) how you conduct your existing credit facilities, how often you apply for credit, the type of credit you apply for, how often you move and change employment and a number of other factors.

Depending on the credit reporting body, your score will be between zero and either 1,000 or 1,200.

The score relates to a five-point scale (excellent, very good, good, average and below average). This helps a credit provider work out how risky it is for them to lend to you.

A higher score means the credit provider will consider you less risky. This could mean getting a better deal and saving money. A lower score may affect your ability to get a loan or credit. Click here to see how to improve your credit score.

For more information on credit scores, click here to visit the Credit smart website.

How does Community First use my credit report?

When you apply for a credit facility with Community First, we will undertake what is known as a “credit check”, where we will review your credit report and your credit score to assist in determining your credit worthiness.

In part, your credit report may help Community First to assess whether you can afford the loan you are applying for and how likely you are to repay it. As such, it is important to remember that your financial decisions and conduct of existing loan facilities can impact your ability to obtain future credit.

For more information on your credit report, click here to visit the Government’s Money Smart website.

What is the benefit of a “clean” credit report?

Poor conduct of your financial affairs or poor financial decisions can adversely affect your ability to obtain future credit or reduce the willingness of certain credit providers to consider applications from you. Conversely, the reverse is true if you maintain a good credit history.

If you conduct your credit facilities prudently, this will be reflected in your credit report and credit score. Credit providers will use both your credit report and credit score as a component of their credit assessment processes. It is not the only input into their assessment processes, but it can be a key factor.

The introduction of CCR now provides credit providers with a clearer, more holistic view of your ability to maintain your existing lending facilities and provides an insight into your ability to repay your debts. This is because under CCR, credit providers will not only have access to your negative credit information (such as payment defaults), but will also have details of all your current loan facilities and your repayment history for the previous 24 months.

Further information and support

The Credit Smart website has further information on CCR and credit reporting in Australia or you can contact us.

You can also view the Comprehensive Credit Reporting FAQs here.

We’re one of Australia’s fastest growing online brands

According to a significant digital industry report, Community First Credit Union is among Australia’s fastest-growing online brands according to web traffic growth in 2020.

SimilarWeb, the world’s leading traffic intelligence company, recently unveiled its Australian Digital 100 Insights Report, revealing Community First is one of Australia’s fastest-growing online Banking and Lending brands.

Community First secured 129% year-on-year growth in website traffic and outperformed all the major banks.

The report indicates that the Banking and Lending sector recorded a 10% increase in traffic during 2020. Only one of the big four banks appeared in the top 10 fastest growing brands in the category.

Examining the insights, SimilarWeb commented that “it is abundantly clear that the fastest growing Australian brands were those who responded best to the new consumer demands.”

A delighted John Tancevski, Chief Executive Officer, Community First Credit Union, commented that an unintended consequence of the pandemic “was that many home-owners had more time to research their mortgages and take advantage of record low interest rates.”

The enormous increase in Community First’s web page traffic over the period has been achieved with exceedingly small marketing budgets compared to the major banks, John noted.

John continued, “This success is also the result of many years of painstaking focus and persistence by our Sales and Marketing teams, which should be thrilled with these breakthrough results.”

John added, “This achievement also recognises our increased focus on developing a raft of successful product, pricing, brand and marketing initiatives to respond to opportunities generated by a unique time in the market. We are incredibly proud of this major industry recognition, particularly as it was achieved during a year like no other.”



Last updated: 21 April 2021

The information contained in this article is only correct at the point of time of publication. It is general information and has been prepared without taking into account your personal circumstances, objectives or needs. Please consider if this information is right for you before making a decision to acquire any product.

Let us take care of your business

At Community First, we offer flexible business payments to complement our other business banking services. We can offer flexible payment solutions suited to your business’s requirements.

CGU is one of Australia’s largest general insurers, and we’ve been working with them for many years to bring members quality cover for their assets. So it made sense for us to extend the product range to include business insurance to help our growing number of business members take care of their businesses.

CGU has over 160 years of insurance experience with small and medium businesses so business members can rest assured they are in safe hands. CGU’s business insurance solutions cover a wide range of insurance needs, including:

  • Small business insurance – cover for trades, professionals and consultants, retail , hospitality, domestic services and repairs, IT professionals, health and medical and commercial property owners.
  • Farm insurance – cover for farms, farm operations and buildings, livestock, hay, machinery and fencing.
  • Farm motor vehicle insurance – cover for farm vehicles such as tractors, trucks, utes, forklifts etc.
  • Commercial motor vehicle insurance – cover for up to 15 business vehicles under one policy.
  • Motor Trade insurance – cover for the motor trade industry.
  • Residential strata insurance – cover for buildings, common contents and common property.
  • Professional indemnity insurance –protects you and your business against claims for alleged negligence or breach of duty arising from an act, error or omission in the performance of professional services.

Members can tailor their business insurance to meet their needs, because we know that no two businesses are the same.

In the last 6 months, we’ve also continued to improve our banking products and services available for business members, with the introduction of payment solutions via Safe2Pay in 2020, and a brand new transaction account launched recently to bring business transactors greater value in their everyday banking.

If you would like to know more about business insurance or get a quote, call us today or visit our product page here.

 

Insurance is provided by Insurance Australia Limited ABN 11 000 016 722 AFSL 227681 trading as CGU Insurance (‘CGU’). In arranging this insurance, Community First Credit Union Limited acts as an intermediary for CGU, not as your agent. This is general advice only and does not take into account your individual objectives, financial situation or needs (“your personal circumstances”). Before using this advice to decide whether to purchase this insurance policy, you should consider the appropriateness of it having regard to your personal circumstances, plus obtain and consider the current Product Disclosure Statement (‘PDS’) for the particular insurance policy. A PDS will be made available on application.

Last updated: 15 April 2021

The information contained in this article is only correct at the point of time of publication. It is general information and has been prepared without taking into account your personal circumstances, objectives or needs. Please consider if this information is right for you before making a decision to acquire any product.

Removal of coin counting machines

From 30 April 2021, Community First has made the decision to remove coin counting machines from the following store locations: Liverpool, Mt Druitt, Erina, Penrith, Dee Why, Gorokan, Edgeworth, Warriewood. 

Over time, interest in these machines has reduced as more of our members favour digital payment options over cash, in particular contactless payment methods which also assist with social distancing.

Additionally, coin counting machines require replacement and therefore investment to upgrade them. This, along with maintenance make the machines costly to run. As there is now only a low number of people who use them, it is not viable for the Credit Union to replace them.

Looking ahead

After this date, cash deposits can still be made over the counter at our store locations that accept cash however a coin deposit limit of $100 per day will apply. You can view which stores are cashless here.

In time, we plan to phase out the use of coins in our financial services stores as these trends continue. This will help us ensure that we invest in services that will benefit the majority of members while ensuring our ongoing success.

Last updated: 01 March 2021

The information contained in this article is only correct at the point of time of publication. It is general information and has been prepared without taking into account your personal circumstances, objectives or needs. Please consider if this information is right for you before making a decision to acquire any product.

Community First sees record lending

Community First Credit Union has bucked demanding lending conditions created by COVID-19 by funding over $140 million in residential loans in the December 2020 quarter.

Key facts:

  • Community First recorded net loan growth of $100 million in the first six months of the financial year.
  • Community First and its online subsidiary Easy Street funded a total of $140 million in residential mortgages in the final quarter of 2020. 
  • The annualised net lending growth as at December 2020 was 25.0%, which outperformed the industry average of less than 5%.

Sydney, January 2021:  Community First Credit Union has bucked demanding lending conditions created by COVID-19 by funding over $140 million in residential loans in the December 2020 quarter.

John Tancevski, CEO of Community First Credit Union, said, “This is an incredible result for Community First as this dramatic growth was achieved during a pandemic and despite our credit assessment and loan processing teams working remotely since April 2020. We have proven to be a real alternative to the Big 4 Banks.

“In total we lent over $140 million in the 2020 December quarter to both new and existing members, while recording a 25% increase in annualised net lending growth in December 2020 compared to the same month in December 2019. 

Refinancing and first-timer action

Several external factors including strong growth in house prices in some capital cities and regional centres, combined with some excellent internal sales and marketing initiatives from Community First contributed to the spike in mortgages in 2020. In fact, we continue to fund strong volumes of loans in to 2021 off the back of our success, noted Mr Tancevski.

“Many loans written last year were the result of refinancing applications by owner-occupiers taking advantage of record low interest rates, and competitive deals with interest rates starting from sub 2%.

“We also launched an innovative feature for eligible professional community workers to borrow up to 90% of a property’s value without the need to pay Lenders’ Mortgage Insurance.”

New buyers taking advantage of the First Home Loan Deposit Scheme, which enabled borrowers with deposits as little as 5% to buy a home were also a considerable borrowing segment in 2020. 

“The $25,000 Home Builder Scheme that was part of the Federal Government’s economic response to the pandemic also encouraged some first-time buyers into a mortgage last year,” said Mr Tancevski. 

Focus on marketing and customer value

In 2020, Community First ramped up its multi-channel home loan marketing strategies using a series of digital and social media marketing, retail marketing and a renewed focus on content marketing strategies. 

“Many opportunities we also sourced and originated by our highly engaged and motivated Community First sales teams through both our financial services stores and our direct channels to provide our extensive range of lending products.” confirmed Mr Tancevski.

“Overall, in 2020, we delivered value to our members through service standards superior than our competitors, an extensive range of lending and banking products, lower fees and very competitive interest rates.” 

While Community First Credit Union stores are NSW based, people can apply for an extensive range of lending and banking products from anywhere in Australia by visiting www.communityfirst.com.au or calling 1300 13 22 77 or trying www.easystreet.com.au

Last updated: 09 February 2021

The information contained in this article is only correct at the point of time of publication. It is general information and has been prepared without taking into account your personal circumstances, objectives or needs. Please consider if this information is right for you before making a decision to acquire any product.

Banking Explained

Every year media report on the billions of dollars in profits and the bank’s focus on maximising “returns to shareholders”. What some Australians may not know is that there is an alternative – the customer owned banking model.


What’s the difference between customer owned banking institutions and the ‘Big Four’ banks?

Many Australians would be familiar with the ‘Big Four’ banks and their focus on generating big profits to keep their shareholders happy. Every year media report on the billions of dollars in profits and the bank’s focus on maximising “returns to shareholders”.

What some Australians may not know is that there is an alternative – the customer owned banking model. These are banking institutions, like Community First that put the customer at the heart of every decision.

The customer owned banking model has been around in Australia for hundreds of years. Credit unions, building societies and mutual banks are all customer-owned.

As the name suggests, customer owned banking institutions are owned by their customers or members. When someone becomes a customer of a credit union, mutual bank or building society, they also become a part-owner and can have a say in how that business is run.

As an owner, customers also benefit when profits are made. One hundred per cent of profits benefit the customer, through competitive rates, low fees, investment in community projects and better customer service.

This ownership model is the key structural difference between customer owned banking institutions and investor owned banking institutions.

Investor owned banks maximise profits to pay dividends to shareholders. This creates a tension between customers of the business and its owners (shareholders).  In many cases, the majority of these shareholders are large institutional investment banks – not mum and dad investors.

This tension doesn’t exist in the customer owned model because the customers are the owners. They are one and the same. There is no question about who comes first – customers or investors. At all times, the customer remains the focus.

This creates a different culture where customer satisfaction is key.  The customer owned banking sector consistently achieves superior performance in customer satisfaction ratings, as measured by independent research houses such as Roy Morgan. The sector’s performance on the Net Promoter Scale also eclipses the major banks. The major banks are at minus-6 compared to credit unions and building societies at plus-29.

While there are big differences in ownership structure, it’s important to note that customer owned banking institutions are held to the same high regulatory standards as the ‘Big Four’. This includes government protections for consumers that mean their money is safe with a customer owned banking institution under the Australian Government’s financial claims scheme.

 

Courtesy of the Customer Owned Banking Association, www.customerownedbanking.asn.au

Last updated: 05 February 2021

The information contained in this article is only correct at the point of time of publication. It is general information and has been prepared without taking into account your personal circumstances, objectives or needs. Please consider if this information is right for you before making a decision to acquire any product.

5 tips to prepare for bushfire season

While it’s important to plan for catastrophic events all year round, if you live in a bushfire affected area, we’ve summarised the top 5 tips to prepare for this bushfire season from the experts at the NSW RFS.

With the weather getting hotter and drier, the fire danger period in many parts of Australia can become susceptible to bushfires that can be difficult to manage. While it’s important to plan for these catastrophic events all year round, if you live in a bushfire affected area, we’ve summarised the top 5 tips to prepare for this bushfire season from the experts at the NSW RFS.

Most importantly, in the event of a bushfire, don’t risk your life. Leaving the night before or on the morning of a high-risk fire day should be your highest priority. 

1. Prepare months before

Well before fire season, visit your state fire authority’s website (details below) or call them to get all the information you need to be bushfire ready.

  • Familiarise yourself with the website and any of their social media channels.
  • Several states also have a mobile phone app that you can download.
  • Also know where to find your emergency broadcaster, such as the local ABC radio channel.

2. Stay informed

Once fire season begins, make a habit of checking your local fire danger ratings. Know what your local weather district is so you can access the most relevant and up-to-date forecasts, alerts and warnings. Armed with the latest information, you’ll be better placed to make a good, early decision.

Remember: you don’t need to wait for a warning. Bushfires can start quickly and may threaten property and lives within moments.     

3. Know your strategy

Before bushfire season starts, make a decision about which fire danger rating will be your trigger to leave.

  • Will you leave the night before or in the morning?
  • Have a number of routes planned so that you have options in case there’s already a fire in the area.
  • Make sure the entire family has discussed plans for leaving, including what to take, what to do with pets or livestock and what will happen if you can’t leave.
  • Have an emergency kit ready to go that includes important documents, medications, protective clothing, a woollen blanket, a battery-powered radio and torch, along with spare batteries.

4. Protect your home

Making sure your house is ready for a fire can increase the likelihood that it will survive.

  • First, make sure you have current and adequate Home and Contents Insurance.
  • Remove leaves and branches from your gutters and clear flammable items from around the house.
  • Take special care to remove potential fuel sources such as woodpiles, outdoor furniture, paint, combustible chemicals, boxes and doormats.
  • If you have LPG gas bottles, turn the valves to point away from the house.

5. Prepare the backyard

  • Prune any overhanging branches within 10 metres of the house and keep the lawn mown to less than 10 centimetres.
  • Replace flammable mulch in the garden with rocks or pebbles.
  • Cut back any shrubs near or under windows and tidy the garden of any dry grass, leaves, twigs and loose bark.

 

For a free Home & Contents health check, visit us in-store or call us on 1300 13 22 77.

 

For more help and information, check with your local fire service:

New South Wales Rural Fire Service

Victorian Country Fire Authority

Queensland Fire and Emergency Services

South Australian Country Fire Service

Department of Fire and Emergency Services WA

Bushfires NT

Tasmania Fire Service

ACT Rural Fire Service

 

Insurance is issued by Insurance Australia Limited ABN 11 000 016 722 AFSL 227681 trading as CGU Insurance. Any advice is general only. Consider the relevant PDS available from cgu.com.au to see if a product is right for you.

Last updated: 16 November 2020

The information contained in this article is only correct at the point of time of publication. It is general information and has been prepared without taking into account your personal circumstances, objectives or needs. Please consider if this information is right for you before making a decision to acquire any product.

Tips to pay your home loan off sooner

Your home loan is one of the biggest expenses you’ll likely ever have. For many of us, it can live with us for many decades so paying it off can seem a long way off.

The good news though is that when it comes to paying it off sooner, a little can go a long way so you can start saving on interest, give yourself some financial peace of mind and look forward to your next big plans instead.

Make additional repayments

Making additional repayments beyond what’s required in your minimum monthly repayment is a great way to reduce the total interest paid and term of your loan.

Getting it right

It doesn’t necessarily mean throwing hundreds or thousands of dollars of spare cash at your loan. It’s brilliant if you can, but if you can’t, it’s important to remember to start small with good habits so you don’t give up early on.

Round up

Start by contributing an amount you won’t miss by rounding up repayments to the nearest $100. For example, if your fortnightly repayment is $1,165 per fortnight, round it up to $1,200. While only an extra $35, it’ll help build up a small buffer over time. By starting small, you’re starting off with good habits which you can build on when you can.

Set and forget

If you can handle a little more, request a higher regular repayment. The regular automated higher amount means you don’t need to rely on yourself or your will power to transfer more – it’s done for you and you’ll get use to the higher repayment over time.

Take advantage of small opportunities

If you don’t want to commit to something quite so regular, then if you have a little extra padding in your pay packet and could afford to throw a little extra in the way of your mortgage, do it. Even if it’s only $50 here and there. Over time, the amount you’ll be ahead on your loan will go from 50’s to hundreds then thousands.

Make lump sum payments

Lump sum payments could include things like gifts, tax returns, commissions, bonuses, and cash from selling something or even some savings you’ve accumulated.

It’s easy to find a reason to spend these opportunities, whether it’s because of an upcoming expense or to simply treat yourself, but they can give you some serious headway on your home loan. Why not treat yourself – by getting ahead on your home loan and enjoying the peace of mind and sense of security that can bring?

Use a 100% offset account (if available)

Another very effective way is to use a 100% Offset account if it is available on your loan. Simply deposit your savings into the 100% Offset account and any money in the100% Offset account is deducted from your loan balance before interest is calculated. It therefore saves you interest on your loan, thus shortening the term of your loan.

Stay resilient

Above all, staying on top of your mortgage is a must. After all, your plans to get ahead can easily become thwarted if you aren’t able to stay on top of the minimum repayments. Getting ahead on your home loan can give you a small safety net in the event you were faced with an unplanned expense, a reduction in your income or other event.

If you’re ever faced with financial difficulty or uncertainty, reach out to us early to talk through your options.

You can also read our tips on staying resilient when it comes to your mortgage here.


Last updated: 12 November 2020

The information contained in this article is only correct at the point of time of publication. It is general information and has been prepared without taking into account your personal circumstances, objectives or needs. Please consider if this information is right for you before making a decision to acquire any product.

Scam Alert

We were recently contacted by the Australian Cyber Security Centre regarding the below scam and wanted to share this information with our members.

Australian Cyber Security Centre Scam Alert

We were recently contacted by the Australian Cyber Security Centre regarding the below scam and wanted to share this information with our members.

What’s happened?

Scammers purporting to be from ACSC are calling Australians and attempting to trick them into installing malicious software on personal devices.

The Australian Cyber Security Centre warns some Australians are receiving phone calls from scammers purporting to be ACSC employees and claiming the receiving person’s computer has been compromised.

These malicious callers are known as ‘remote access scammers’ and they request individuals to download ‘TeamViewer’ or ‘AnyDesk’ onto their device to help resolve the malware issue.

The scammer then attempts to persuade recipients to take actions, such as enter a URL into a browser and access online banking service, which then compromises their computer to reveal banking information, enabling them access to transfer funds.

Some recipients of these calls have reported to ACSC that the scammers may have spoofed legitimate caller ID numbers, to make their unsolicited calls appear more authentic.

Protect yourself from remote access scams

NEVER provide your personal and financial details or give a stranger remote access to your device or computer – simply hang up.

Australian Government agencies will never contact individuals asking for remote access to use computers or request funds to be transferred for an investigation.

If you receive a suspicious phone call, we recommend you hang up and report the incident to Scamwatch and the affected government agency.

To report a cybercrime or cyber security incident through ReportCyber, see www.cyber.gov.au/acsc/report.

How do I stay safe? 

  • If you’ve received one of these calls but have not engaged with the scammer, you can report it to Scamwatch.
  • If the cybercriminal has accessed your device via Team Viewer, Zoho Assist or AnyDesk, you should report it to ReportCyber and immediately notify your bank. Your financial institution may be able to put a temporary freeze on your financial accounts.
  • To prevent further compromise, you should also change passwords on all your important online accounts including banking, email and social media, and turn on two-factor authentication for extra security.

If you’re in doubt about a call claiming to be from a government agency or Australian business and want to verify its legitimacy, contact the organisation by sourcing their details separately from their website, NOT using the phone number or other details from the incoming call.

More information 

Many organisations have dedicated scam pages on their websites alerting the public to the latest scams.

ACSC has launched an interactive quiz, to help Australians spot the warning signs of phishing (scam) messages. Make sure you share the quiz with your colleagues, family and friends, available at www.cyber.gov.au/scam-messages.

Read more about remote access and threat-based impersonation scams – including what to do if you have given personal information to a scammer.

CONTACT ACSC Facebook: www.facebook.com/staysmartonline Email: staysmart.online@defence.gov.au Web: www.cyber.gov.au

Last updated: 10 November 2020

The information contained in this article is only correct at the point of time of publication. It is general information and has been prepared without taking into account your personal circumstances, objectives or needs. Please consider if this information is right for you before making a decision to acquire any product.