Improve your credit score with RentBond

Did you know you could improve your credit score by paying off your RentBond loan on time?

How does RentBond affect my credit score?

Have you been approved for RentBond through rent.com.au? Good news! Your credit score could improve when you pay off your RentBond loan on time.

Generally speaking, making all your loan repayments on time should have a positive effect on your credit score. Of course, many things affect a person’s credit score. This can include the number and value of loans they have outstanding, whether there have been any issues with repayments previously, or even just whether the loan provider contributes to Comprehensive Credit Reporting (CCR) data.

Fair Go Finance, the financial provider behind RentBond was Australia’s first small loan provider to go live with CCR back in October 2019 and is still the only one that shares customer repayment history with all three credit bureaus.

Conducting some research in collaboration with global data, analytics, and technology company Equifax, they found that some 62% of customers experienced a positive change in their credit score after successfully applying for and then paying back their loan.

What is the difference between positive and negative credit reporting?

CCR (or positive credit reporting) aims to highlight people’s responsible use of credit so that a lender has the full picture when assessing someone for a loan. Positive payment history shows that you paid back your loan on time and as per your agreement. By doing so it will give you the best opportunity to be accepted for a loan, credit card or any other type of credit the next time you apply.

Conversely, negative payment history would reflect that you missed payments or have not paid what you owed in full.

It’s worth considering how you can change your behaviours (and credit usage habits) to improve your chances of being accepted for credit.

What is Comprehensive Credit Reporting?

Here’s how Comprehensive Credit Reporting (CCR) works in more detail. CCR is how your credit information from financial institutions must be reported to Australia’s credit bureaus.

Interestingly, these credit bureaus (the likes of Equifax, Experian and Illion) previously only used to receive and record negative credit information on your record. That could have been anything from missed loan or credit card payments, missed bills, defaults or even bankruptcy.  

Then, in 2014, the Australian Government legislated a change that meant we moved to comprehensive credit reporting or CCR. The Government imposed two deadlines for the ‘big 4’ banks, which were taking their time to implement the CCR.

From September 2018, it became compulsory for the big 4 to report their credit data to the bureaus. Small loan providers have generally not followed suit, but Fair Go Finance has, thereby allowing customers such as those with RentBond loans to benefit from their good repayment records.

What are the benefits of CCR?

Under this change, your credit report now includes repayment history information, as well as additional credit information. This change gives a more complete and fairer picture of your credit history, such as when you make your loan repayments by the due date.

CCR makes it easier for you to show how responsible you are with your finances, which is excellent if you want to look at borrowing money in future.

Any positive payment behaviour that gets reported should help to partly offset any negative records, such as missed payments. In other words, your credit rating or score should not be impacted significantly by one negative event.

This positive information could benefit you if you are consistent and reliable with paying your bills and loans on time. It will help to improve your credit rating, which in turn should help your ability to obtain cheaper finance if it is available. For example, RentBond pricing is structured to reward those with better credit scores with lower prices.

Applying for RentBond is quick and easy. Paying your rental bond in smaller instalments lets you save money for more important things, like enjoying your new home! If you’d like more information about RentBond, visit the rent.com.au website, email rentbond@rent.com.au or call Rent.com.au on 1300 736 810.

Lauren Vardy
Content Manager at

Lauren Vardy is the author behind the Rent.com.au Blog, a site built to help renters find a home and navigate their renting journey. She is the Content Manager at Rent.com.au. Outside of work, she dabbles in all things health, fitness and houseplants.