Young Aussies are being tagged with a bad credit rating without realising, as students and housemates get caught up in unpaid bills and shared debts.
The Consumer Action Law Centre is warning our youth that the black marks on their credit report can last up to seven years and have repercussions on their long-term future, as well as their renting and borrowing ability.
It is all too easy for bad credit ratings to happen…. many young people leave their names on utility accounts at share houses or take out credit with a partner and not really give it another thought. But once they have left that share house or split up wit that partner who knows what is happening with that bill or stereo payment?
A bad credit rating isn’t something many young Australians give much thought to. Major commitments such as a home loans seem a long way off, so it is easy form them to ignore or don’t realise the consequences.
A payment default can be listed for five years and bankruptcy or court judgment is listed for seven years. All banks take these payment defaults and black marks very seriously and it could end up being the only reason that you do not get approved for finance.
Who knows what the plan will be in five years? The bad credit rating could not only affect the ability to get a home loan, but also a car loan or even the ability to get a new phone contract. You may not even be aware of having a black mark on your file, and this could seriously affect your future plans.
Make sure you know what credit hits you have against your name. If you are wanting to move ahead and not sure what your credit rating is, or are concerned that there may be something there that’s not good, you do have some options.
Give Chris a call to discuss further. He will be able to get you a full credit report (CRAA), assess your options and steer you in the right direction, so that when you are ready to move ahead, you can do so without any worries.
Either call Chris on 0434 449 455 or drop us an email at email@example.com