How to Build Credit from Scratch in Australia

If you're new to Australia, recently started working, or simply haven’t had a credit card before — you might not have a credit history. But don't worry. Here’s a step-by-step guide to building your credit score from scratch.

1. Open a Basic Bank Account

Start with an everyday account and savings account with a reputable bank. Choose banks that report your behaviour (like overdraft management) to credit agencies.

2. Get a Low-Limit Credit Card

• Start with a secured card or student card
• Keep your credit usage below 30%
• Always pay the full balance by the due date

3. Become an Authorised User

If a family member or partner has a solid credit card, they can add you as an authorised user. Their good habits help build your history too.

4. Use Buy Now Pay Later Services Wisely

BNPL platforms like Zip and Afterpay now share some repayment behaviour with credit bureaus. Use these only if you can repay in full on time.

5. Pay Bills on Time

• Phone, internet, and utilities can indirectly influence your credit score
• Consider signing up for bills in your name and managing them well

6. Track Your Progress

• Check your credit score regularly with apps like ClearScore, WeMoney, or Credit Simple
• Dispute any errors early to avoid future issues

Affiliate Opportunities – Tools for Beginners

• ClearScore: Free credit score tracking with personalised tips
• WeMoney: Budgeting + credit builder tools for Aussies
• Zip: BNPL that contributes to credit reporting if used responsibly

Final Thoughts

Building credit from scratch doesn’t require loans or big risks. All it takes is consistency, smart habits, and patience. Start small, stay on track, and watch your credit grow.

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