When Does a Credit Report Begin?

A credit report is a detailed history of an individual’s credit activity. In a nutshell, an Australian credit report may start at age 18. However, there are a few things to bear in mind.

In Australia, if you wish to apply for a credit card, vehicle loan, or house loan, you must be at least 18 years old. To be eligible for this sort of service legally, you must be at least 18 years old. This is the age at which you are declared an adult and can apply for financial services as well as phone plans and utilities.

The Fair Credit Billing Act is a federal law that establishes the minimum standards for businesses who accept or transmit payment cards, but these regulations do not only apply to just credit cards. When you join up for a post-paid mobile phone plan, you are applying for credit. The applicant will have their credit evaluated and must be at least 18 years old. Gas and electricity are examples of the utilities that are covered by this law.

A credit report does not exist until an individual begins to apply for these services, however this is why young people in Australia may discover that despite being 18 or older, they do not have a credit history because their parents are still the account holders for more accessible forms of credit, such as mobile phone plans.

As a young Australian, there are some things you can do to raise your credit score and increase your chances of being accepted for financial products. Read on to find out more:

By starting small, you are less likely to be approved for a credit card if you don’t have any credit history. It’s probably better to start with credit offers that have easier eligibility requirements, such as putting a cell phone plan under your own name or having your name added to a utility bill.

It’s not enough to pay your bills on time; you’ll also want to get into the habit as soon as possible. To ensure that you never miss a payment due date, add reminders to your phone or establish direct debits. Positive credit behavior like this may improve your credit score. It also helps to create good behavior and might prevent you from incurring late payment penalties or defaulting further down the road.

It’s something you don’t usually learn, is that every time you apply for a product like this, the provider will perform a hard credit check on your credit history. Credit checks allowed vendors to assess your credit behavior to see if you would be able to pay their product.

However, the hard inquiry will also show up on your report. If you make numerous credit card or loan applications in an attempt to hedge your bets, this may reduce your chances of being approved. Providers will view you as a riskier customer because you are making numerous applications.

You generally need to be accepted for a financial product in order to improve your credit score by following good financial habits, but you may not be approved if your credit history is short, resulting in a catch-22.

Consider asking someone with a good credit score to go guarantor or co-sign an application on your behalf if you have a limited credit history because of your youth. Having this extra individual join your application will improve your chances of approval by improving their credit history and personal information.

If you have found that you have a negative listing on your credit report, or if you have been declined for credit, don’t panic. There may be a solution for you. Clear Credit Solutions experts can help to improve your credit score and remove any inaccurate information on your credit report. This will give you more of a chance to be approved by lenders in the future. For more information or to fix bad credit, please visit our website or call us today.

If you have found yourself in a situation where you are being denied credit due to bad credit, don’t despair. Clear Credit Solutions can help! Our team of credit repair experts work diligently to remove negative listings and defaults from your credit report so that you can be approved for the financing you need. Let us help you wipe credit history clean – call us today on 1300 789 783 and finally fix bad credit!

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