How it works

What is Comprehensive Credit Reporting (CCR)?

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Harmoney uses Comprehensive Credit Reporting in our credit screening. We are proud to be leading the charge in adding this fairer credit assessment tool into our loan application process. Learn more about CCR below.

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What is Comprehensive Credit Reporting (CCR)?

A more balanced approach to credit assessments

Harmoney uses Comprehensive Credit Reporting in our credit screening. We are proud to be leading the charge in adding this fairer credit assessment tool into our loan application process. Learn more about CCR below.

What is Comprehensive Credit Reporting (CCR)?

Comprehensive Credit Reporting is exactly what the name suggests - a more comprehensive look at your credit history.

Historically, the information that could be shared about you to the New Zealand Credit Bureaus was limited to all the negative activity on your accounts; things such as how many credit applications you had made, and how many (if any) defaults you had, had you gone bankrupt etc – this was known as 'negative' credit reporting. One of the major disadvantages of negative credit reporting – aside from only conveying half the story – is that information wasn't updated in real time; it could take 6 months after the fact for a default to register an account.

This all changed on the 1st of April 2012, when New Zealand parliament changed the law to allow for Comprehensive Credit Reporting (CCR), or ‘positive’ credit reporting. This now means that far more information can be shared with the New Zealand Credit Bureaus. And not just the bad! Now your phone company, your power company, your Internet provider, your bank - all your services now provide the Credit Bureaus with regular updates on your payment behaviour, which gets aggregated into a Bureau Score.

How is Harmoney using CCR?

Harmoney has a bespoke credit scorecard - this is the tool we use to assess each loan application and assign a risk grade. To date, our scorecard has performed beyond expectations (as seen here). It sets us apart from other financial service providers in New Zealand, allowing us to better identify credit-worthy Borrowers and give them access to our marketplace.
By adding CCR into our assessment scorecard, we can offer an even greater refinement to our assessment process.

We will continue to use our bespoke scorecard - but with the addition off CCR we will be better be able to approve, credit grade and price Borrowers fairly for our Lenders.

What does this mean for Borrowers?

When we assess loan applications, we no longer simply look at any slip ups a Borrower may have had in the past, (e.g. a default), we look at their full credit history, including all the good stuff too! This means if a Borrower has a good track record of paying their bills, and they are in a good financial situation, then they could be approved for loans where they otherwise might not be.

That said, CCR also works the other way - if our Borrowers are regularly late in their repayments, it could reflect badly on their Bureau Score - which means Borrowers may not be approved in the future.

What does the mean for Lenders?

They say the best predictor of future performance is past performance; by using a more comprehensive credit check that gives us visibility over an applicant's repayment behavior, we are able to ensure that only credit-worthy Borrowers are listing their loans in the Marketplace.

More than this, the information we get on Borrowers is now more up-to-date. Historically negative data could take months to reach the NZ Credit Bureaus, whereas positive data is updated monthly.

And, of course, a more refined scorecard means we are able to better rate for risk, and price fairly for Lenders and Borrowers.

What is a Bureau Score?

bureau score

A Bureau Score of 500 represents an average credit risk compared to the rest of the population.

A Bureau Score is a numerical value which is scored according to how your credit information compares to other credit-active New Zealanders at that point in time.

The higher the score, the lower the risk.

This score provides consistent and rigorous criteria for making credit decisions and allows Lenders to make more informed decisions on who to Invest with. For example, a Bureau Score of 500 represents an average credit risk compared to the rest of the population. For more information on how Bureau Scores are calculated, click here.