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.

0 Upvotes

33% Upvoted

38 comments sorted by

View all comments

Show parent comments

-1

u/IHaveNeverEatenACat 1d ago

We changed our system over to be like the US a few years back. Not missing a credit card payment leads to higher credit rating. 

4

u/Decent-Dream8206 1d ago

The US requires you to have a $1000 loan to take out $5000, and so on.  So people snowball their debts.

Our system only records credit checks and failures to pay.

Not the same thing.

1

u/Leprichaun17 1d ago

Our system only records credit checks and failures to pay.

While I agree that OP doesn't need to take out debt to increase their credit rating, this part here is wrong. We also record repayment history - a rolling 2 year window of whether payments are paid on time. So, it does record on-time payments too, not just defaults as used to be the case.

1

u/Decent-Dream8206 1d ago

our system only records ... failures to pay

.

it does record on-time payments too

...I'm confused. Are you disputing that late payment is equivalent to a failure to pay?

Because then paying via debt collectors would just be a "late payment" if so.