Credit History File

Hi guys

This is my first year in Australia, at the start of the year I applied for random credit cards thinking that it will help to build credit history , and most of them were rejected. I wasnt aware that it would affect my credit score.

Similarly I had applied for a home loan preapproval which was rejected too.

Is there any way to improve my credit score? and can i get some of the credit checks removed from my file?

Comments

  • +1 vote
  • +1 vote
  • +2 votes

    Don't apply or touch anything credit lated for a while. Every reject is going to dig you a deeper hole.

    Were you eligible for a home loan? Ie have payslips, stable income, deposit etc?

    •  

      yup will have to be quiet for sometime now!

  • +1 vote

    Basically you got to wait 5 years for them to full off.

    •  

      They physically stay on for 5 years, but its very likely most lenders will only look at most recent 12 or 24 months of inquiries ( so once they get to 24 months age, they will have no impact on a lender decision)

  • +1 vote

    Whats more important is your income, your liabilities, your residency status, your spending, etc. The credit companies just want to know what is the likelihood that you can repay the debt. These companies thought you were a risk, you need to figure out why.

    •  

      yup, I realised it a bit late.. with no previous Aussie employment history its obvious to get rejected.
      but I am just thinking how to improve the score.

      •  

        You wait. We don't add to your score by taking credit ect, you basically only lose if apply. Time is the only way to 'improve' it.

  • +2 votes

    The only way to have a credit check removed is if it was done in error; if the check relates to an actual application for credit then it's a valid check and won't be removed.

  • +1 vote

    7 years actually then they will be removed 😆

  • -2 votes

    time…
    Your applications are not real error.

    tip if driving, dont break local traffic laws when you think they dont have demerit points, from RBT shows..

  • +5 votes

    Happened to me, when came to Australia few years ago. Applied for heaps of credit cards and got rejected. Had a bad credit score after.

    Make sure your salary go to one account. I got Commonwealth since they are one of the banks who offer credit cards for Temporary Residents. I got a joint account so my wife's salary go there too.

    Wait patiently for sometime (9 months - 1 year), and during the wait, apply for AfterPay, ZipPay, and you should get the them. Buy things and pay on time. They will increase the limit eventually.

    After wait (preferably 1 year), apply for a credit card from your bank, hopefully you will get one, with lower limit even. Use the limit, buy things, but remember to pay on time, and specially more than the minimum amount.

    ^ should help your limit, as it did mine.

  •  

    This is my first year in Australia,

    You may be able to bypass the credit history bull we have in Australia if you have previously resided in the N.America, the EU or SEA. There are now financial products available to consumers that don't discriminate just because they have a bad or non-existing credit history. Australians can also use these products but the choice of suppliers may be limited.

  •  

    My daughter recently got a house loan. She never had a credit card or used afterpay. She was told that if she had those things (credit card and afterpay) it would have looked bad and she would not have been able to get a house loan.

    •  

      She must have been right on her borrowing / capacity limit I'm guessing.

    •  

      not sure why the neg for telling your story. Even Stephen now.

  •  

    I feel this is a fairly common misconception in Aus, I've made it myself (though I didn't go far enough to get the credit card luckily). But lots of people have told me I should get one to build a credit score for when I get a mortgage, only for it to do the opposite!

    •  

      …build a credit score for when I get a mortgage, only for it to do the opposite!

      You can cancel the credit card(s) before you start applying for loans, so that you have more money (in theory) to pay off the loan you're applying for.

  •  

    Good to have a credit card for credit rating as dumb as it sounds.
    My misses earns good money and didn't have a credit card for about 7 years, and has ample assets. She got rejected by vodafone for a phone plan even with a print out of her bank account.

    •  

      downvoted by a gronk for telling the truth to offer advice… love keyboard douche lords.

    •  

      What was the reason for rejection? How much was the phone plan and her income at that time? Permanent /Part time employment etc.

  •  

    can i get some of the credit checks removed from my file?

    Only if they were illegitimate checks like due to identity theft. But since they were done by you applying for cc, you can't take them off

    any way to improve my credit score?

    You need to understand why you were rejected in the first place. What was the first product you applied and was rejected?

  • +2 votes

    There are a few credit bureaus in AU (so you actually have more than one credit score). You should check/monitor all 3, as lenders generally only work with one or two of them.

    Equifax - https://www.getcreditscore.com.au/ (only score)
    Experian - https://www.clearscore.com/au/ (score + report)
    Illion - https://www.creditsimple.com.au/ (score + report)

    As they are free sites they do like to the hard sell, but you can generally opt out of all emails etc as well.

  • +1 vote

    You need to first understand why your previous applications were rejected. It’s very unlikely the first few applications would have been rejected due to a low credit score since all new to bureau people (ie people from overseas) with no credit history in Australia are given a base credit score, which might be slightly below the population average, but still high enough to meet most banks cut offs. It’s likely your initial applications were rejected due to serviceability (what was the limit you applied for?), or not being in stable employment. By applying for multiple credit cards within a short period of time, this would impact your score. Remember banks do not know if prior applications from other financial institutions were declined, they only know you applied for something.

    The best way to improve your credit score is by obtaining credit and building up the positive repayment history that is captured by comprehensive credit reporting. It’s a catch 22, in that since your credit score has been impacted and is now lower, it’s now harder to obtain credit. If I was in your situation I would consider applying for a credit card at the financial institution I already bank with (transaction account) since most banks treat existing customers more favourable and I would apply for the minimum credit limit. Go in and speak to a credit card lender at your bank and they will be able to assess your application before conducting a formal credit check. If you fail serviceability, they won’t proceed to a credit check.

  •  

    The card were rejected when I had just started my first job here and had been here for few months.
    I don't need a card now, however I am applying for a home loan and the credit history is something which the banks usually look into, given that I dont also have one year of employment in Australia.

    •  

      Why was your home loan application rejected? Its probably not credit bureau score related… more likely it’s due to other reasons such as serviceability or residency status. Are you a permanent resident? If you are looking for a home loan, best to speak with a broker who will be able to assess your situation and recommend a lender with the best chance of approval (some lenders are more conservative than others).