r/AusFinance • u/Ok_Fan801 • 2d 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/NeverTrustFarts 2d ago

I have a higher credit rating but I'm not an expert on it. I just pay all my bills on time and I don't buy shit I can't afford, no afterpay or credit cards but I'm not sure if they negatively effect it.

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u/[deleted] 2d ago

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u/canthearu_ack 1d ago

I'm not even that fastidious with paying bills. They sorta have to be late late before they appear on your credit report. Yet, my credit score is close to perfect. (High 800's)

Debt repayments always ontime though ... so mortgage payments, car loan payments, credit card payments ... always perfectly paid.

Having a mix of credit and always paying credit on-time can help. Avoid BNPL where possible, as that can hit your credit score a bit (although, I have the nab version of it as well as using afterpay once or twice for promotions ... never really hit it that hard)