There are a wide range of credit issues that can affect the ability to obtain credit. There are many classes of credit issues but they all relate back to how they affect negatively an application for credit.
Credit reporting is constantly evolving. Australia is currently moving from the old method of credit reporting which is basically credit updates being noted on your credit file for accounts being delinquent for 3 months or greater. The new reporting method which is called “positive credit reporting” involves tracking payment history on debts, both positively and negatively, along with delinquent credit facilities. Positive credit reporting is intended to support better reporting of credit activities and the management of accounts, so lenders can ascertain a deeper understanding in applications for credit. Essentially a deeper understanding of the character of the loan/credit applicant toward managing credit and the risk associated to providing new credit.
The result in applying for credit, is that potentially a higher number of loan applicants would fall outside of the lending criteria of traditional lenders.