How Many People Have Bad Credit in Australia?

How Many People Have Bad Credit in Australia?

Your credit score is so fragile and can have such a huge impact on your life. But how many people have bad credit in Australia? Find out the key stats here!

Credit, the thing that seemingly makes the world go round. You always hear about it and you can rarely escape it. That means, that at some point, you’re going to have to learn about it. An understanding of something you don’t know a lot about is always so helpful. It doesn’t hurt to educate yourself, especially when it comes to how many people have bad credit in Australia.

Your credit score is incredibly important. It dictates a lot of things in your life that will sooner or later prove vital. It can stop you from getting your first house, a car loan, or even applying for a credit card. Keep reading to find out more!

How many people have bad credit in Australia?

How many people have bad credit in Australia? Well, the truth is that far more people have bad credit than you think. It certainly isn’t uncommon, but that doesn’t mean that it is a good thing. People should definitely be far more worried than they are if they have bad credit. It may not kill you, but it will definitely kill many chances for you with your financials.

If you have a good credit score, you need not worry. However, if your score is currently low, you need to understand it, and then fix it.

bad credit australia

What is bad credit, and how do you get it?

When it comes to wanting to know how many people have bad credit in Australia, you first need to know about bad credit. Most importantly, what it is and how you get it. Firstly, let’s take a look at the three major credit bureaus. We can determine what they consider to be low, good, and excellent credit scores.

  • Equifax- Low (0-505), Good (666-755), Excellent (841-1200)
  • Experian- Low (0-549), Good (625-699), Excellent (800-1000)
  • Illion- Low (1-299), Good (500-699), Excellent (800-1000)

Here are some ways that you will get bad credit.

  • Paying late
  • Not paying at all
  • Having a debt collector put on your case
  • Defaulting a loan
  • Declaring bankruptcy
  • Getting a judgement
  • Maxed out credit cards
  • Applying for several credit cards
  • Applying for several loans

Credit can be simple to fix, however, it may take quite a long time to do that.

get help with bad credit

How do you fix bad credit?

If you find that you have bad credit, don’t panic. Once the problem is identified, it can be a simple fix. It may just take slightly longer to see improvements. Here are some of the best ways to fix your bad credit.

  • Check your free report annually to assess your credit health
  • Obtain a copy of your credit reports
  • If you own a credit card, ensure you use it properly and responsibly
  • Check for potential errors on your report
  • Reduce any other debt you have
  • Pay all of your bills on time, every time
  • Pay off any high-interest loans to reduce your debt as soon as possible
  • Clear up any debt defaults
  • Remove negative listings

Considering how many people have bad credit in Australia, all of these are great ways to fix bad credit. Consider using them if you have bad credit.

credit card statistics australia

Statistics of bad credit

As of March 2021, there is said to be around 13,432,262 credit cards netting a national debt accruing interest of $20.5 billion. Many Australians do a great job of using their credit cards responsibility. However, some have not been so smart and have now managed to accrue bad debt and bad credit.

Here are some statistics of credit cards:

  • Number of credit cards in circulation: 13,432,262
  • Average balance per credit card: $2,909
  • Average balance costing interest per credit card: $1,523
  • Average number of purchases per credit card per month: 20 
  • Average credit card purchase: $101

While over 13.7 million Australians have credit cards, many run into difficulties when applying. 36% of them were denied for unsteady income, 22% for having too much debt, and 21% for bad credit according to Finder.com. However, 16% of the American population have bad credit.

Interesting bad credit facts

Speaking of how many people have bad credit in Australia, let’s take a look at some of the bad credit facts. 

  • Good finance habits are becoming increasingly popular now that people are becoming more aware
  • Your credit score is based on five different factors
  • Credit reports are very different from credit score contrary to popular belief
  • Negative credit items will eventually cease to exist on your credit report
  • You have many different types of credit scores

The bottom line of how many people have bad credit in Australia

If you have bad credit or are experiencing financial hardship, it is a good idea to speak to professionals. Clean Credit has a whole team of professionals waiting to help you out. We are caring, knowledgeable, and ready to help you with your financial needs. Contact Clean Credit today for help.

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