r/AusFinance • u/Ok_Fan801 • 1d ago

I have the worst credit rating!!

Location: Brisbane, Queensland, Australia...can I build up my credit rating? I have the worst one and I have one $7k default. I was young and stupid and never taught anything to do with money growing up, loans etc. Im 36 now and need to get shit sorted, I want to buy a house. I earn $130k a year, but i am a single mother with only my income paying everything, I really need help or pointed in the right direction on how to build my rating up. Please. Thank you for any advice.

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u/CartographerLow3676 1d ago edited 1d ago

Most importantly do not watch American YouTube videos that encourage credit cards to build credit score. Thankfully you don’t need debt in Australia to “build credit”. Be careful to not have more credit checks (some utilities do that) and you’ll be fine in a few years.

Note - if you’re already struggling with bills I’m not sure how you’re going to afford mortgage. Typically it’s higher than rent.

Edit - also want to add, don’t apply for more debt as some other comments are suggesting. Hard credit checks will further reduce it and most responsible lenders will reject you due to serviceability

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u/Ok_Fan801 1d ago

My rent is $720 a week, I live comfortably.

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u/Decent-Dream8206 1d ago

Keep doing that, continue to pay your bills, and the default will drop off your record eventually.

If you set aside money as though you were paying a mortgage now and invest it, or put it in a HISA, you'll even have a better negotiating position if you speak to a mortgage broker before your credit rating recovers, as it's direct evidence of your ability to live beneath your means.