# Credit history in Australia



## Pauline Marco (Jan 3, 2013)

Hi All,

I went to Telstra today, to get a apply for a new post paid connection with a mobile phone. They asked me to gave AUD:600 to make a credit history in Australia as I don't have a job /credit card (I've only debit card). They told me this amount will deduct from the monthly bill. But do I've to pay that money to build a credit history in Australia Please help me in regards to this. 

Thanking You,
Princy


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## Guest (Jun 27, 2013)

No but nobody is going to give you credit until you have established yourself as a resident with income and ability to pay your bills. 

Get a pre pay phone and ask your bank for a credit card. They are most likely to give you credit to start establishing your credit rating but not until you have a job.


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## mandanapu (Nov 2, 2012)

_shel said:


> No but nobody is going to give you credit until you have established yourself as a resident with income and ability to pay your bills.
> 
> Get a pre pay phone and ask your bank for a credit card. They are most likely to give you credit to start establishing your credit rating but not until you have a job.


Hi shel

I've a query related to mobile phone bill. I lived in Australia for 3yrs. I used to have two mobile connections on my name. While I'm coming to overseas I didn't pay my mobile phone bills. It's been exactly 2 yrs now. Now again I'm going back to Australia as a permanent resident. If I apply for new postpaid connection can I get it? Or do I need to wait one more year to clear this. 

If v don't pay mobile phone bills, how many yrs credit history remains in Australia? Pls shed some light. 

Thanks a lot in advance

ANZSCO: 261313 |NSW SS: Applied 5/11/2012 |ACK Received: 31/01/2013 |Invitation: 26/02/13 |Lodged: 12/03/13 |AFP: 20/01/13 |Indian PCC: 14/03/13 |Medicals: 22/03/13 |CO: 10/04/2013(T34 L) |Grant: 10/06/2013


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## Guest (Jun 27, 2013)

LOL you will now have a huge blemish on your credit record and are going to have trouble getting credit anywhere even for tiny amounts for a number of years. You have already proved yourself to be a credit risk, something that stays on your file for many years for agencies to view and share to avoid lending to people who will not pay.


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## findraj (Sep 24, 2012)

mandanapu said:


> Hi shel
> 
> I've a query related to mobile phone bill. I lived in Australia for 3yrs. I used to have two mobile connections on my name. While I'm coming to overseas I didn't pay my mobile phone bills. It's been exactly 2 yrs now. Now again I'm going back to Australia as a permanent resident. If I apply for new postpaid connection can I get it? Or do I need to wait one more year to clear this.
> 
> ...


Wow! You got some guts man..Canada has 7 years if the amount defaulted is below 10 K but they say 10 years..above 10 K forget you will get any credit card, line of credit, postpaid phone!! 

Dont know about Australia, but 2 years is nothing man?!?!? How much did you default?


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## mandanapu (Nov 2, 2012)

findraj said:


> Wow! You got some guts man..Canada has 7 years if the amount defaulted is below 10 K but they say 10 years..above 10 K forget you will get any credit card, line of credit, postpaid phone!!
> 
> Dont know about Australia, but 2 years is nothing man?!?!? How much did you default?


Not sure but not more than AUD 2500. I'm ready to pay that amt once I landed in Australia.

ANZSCO: 261313 |NSW SS: Applied 5/11/2012 |ACK Received: 31/01/2013 |Invitation: 26/02/13 |Lodged: 12/03/13 |AFP: 20/01/13 |Indian PCC: 14/03/13 |Medicals: 22/03/13 |CO: 10/04/2013(T34 L) |Grant: 10/06/2013


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## Guest (Jun 27, 2013)

Dont know if its better to pay it or not. The account stays on your credit file for 7 years from default/last contact. 

But if you then contact them and make a payment in whole or part the account the account is then active again and it would be 7 years from the point of that payment but would still then show the years of missed payments! 

The right and moral thing to do would be to pay it obviously, but the best thing in terms of re-establishing yourself, not necessarily depending on how much money you have, how quickly you will need credit (and not for a mobile phone because you can do pre pay easy enough)


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## mandanapu (Nov 2, 2012)

_shel said:


> Dont know if its better to pay it or not. The account stays on your credit file for 7 years from default/last contact.
> 
> But if you then contact them and make a payment in whole or part the account the account is then active again and it would be 7 years from the point of that payment but would still then show the years of missed payments!
> 
> The right and moral thing to do would be to pay it obviously, but the best thing in terms of re-establishing yourself, not necessarily depending on how much money you have, how quickly you will need credit (and not for a mobile phone because you can do pre pay easy enough)


Actually I've Nab credit card as well with the credit limit of $5000. But I never ever used that. I dunno still it is active or not. If it is inactive and if I wanna activate it, does bank people simply activate it as I already have the card or still do they check for credit history? 

If credit history is not gud, does immigration people allows me into their country? Or does they create any problem at the time of immigration? 

Pls shed some light shel

ANZSCO: 261313 |NSW SS: Applied 5/11/2012 |ACK Received: 31/01/2013 |Invitation: 26/02/13 |Lodged: 12/03/13 |AFP: 20/01/13 |Indian PCC: 14/03/13 |Medicals: 22/03/13 |CO: 10/04/2013(T34 L) |Grant: 10/06/2013


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## Guest (Jun 27, 2013)

No they will credit check you. They are not just going to renew your credit after not having any contact from you for 2 years. 

Credit history has no influence on immigration UNLESS you have failed to pay taxes or government fines & payments.


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## happybuddha (Sep 28, 2012)

_shel said:


> Dont know if its better to pay it or not. The account stays on your credit file for 7 years from default/last contact.
> 
> But if you then contact them and make a payment in whole or part the account the account is then active again and it would be 7 years from the point of that payment but would still then show the years of missed payments!
> 
> ...


What a read-a-leech-thread today is!

Such (morally) wrong doing leeches are every where. Many parents visiting their children on a B2 leave US without paying medical bills (when hospitalized) ! Other than labeling ALL people from such regions as cheats, all of this, thankfully, comes to back to bite when you visit the country again. 
Mandanapu, you can agree to pay double the amount. But it ain't helping you. 

2500 AUD is a lot of money for a phone bill. Seems like you ran a high bill intentionally. If they have it in their contract, I would be prepared to be arrested at the airport on arrival.

I dont think anyone is taking this off his history anytime soon. 
It stays on for 7 years in the US as well.


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## happybuddha (Sep 28, 2012)

_shel said:


> Credit history has no influence on immigration UNLESS you have failed to pay taxes or government fines & payments.


And the phone bill had the taxes component in it, and you didn't pay it.

I dont think you are getting it. Credit history is a different thing all together. 
If the phone company has sent court summons (for non conformity to contract of paying your bills) on the address you registered on and you haven't appeared for not paying the bill, you risk being prosecuted, on arrival.


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## mandanapu (Nov 2, 2012)

happybuddha said:


> What a read-a-leech-thread today is!
> 
> Such (morally) wrong doing leeches are every where. Many parents visiting their children on a B2 leave US without paying medical bills (when hospitalized) ! Other than labeling ALL people from such regions as cheats, all of this, thankfully, comes to back to bite when you visit the country again.
> Mandanapu, you can agree to pay double the amount. But it ain't helping you.
> ...


Dear Happybuddha,

I know it's a huge money. Here actually I'm not blaming anyone except me. Because I didn't use one of my mobile. One of my friend had taken connection on my name and he failed to repay the money. I can prove that as he used the phone after I left the country. But I know it's my duty to repay. But my friend who had taken connection even didn't inform me that he is not paying bills. Came to know from other friend. 

I think with taxes and fines all together it will be AUD 2500 (counted the whole contract period including the mobile cost). I never paid more than my cap while I was in Australia. Because I know end if the Australia will be my home country. 

Now I follow strictly TRUST NO ONE.

ANZSCO: 261313 |NSW SS: Applied 5/11/2012 |ACK Received: 31/01/2013 |Invitation: 26/02/13 |Lodged: 12/03/13 |AFP: 20/01/13 |Indian PCC: 14/03/13 |Medicals: 22/03/13 |CO: 10/04/2013(T34 L) |Grant: 10/06/2013


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## happybuddha (Sep 28, 2012)

> One of my friend had taken connection on my name
Thats illegal to do, at least in the US. And this wouldn't have been without your consent, right ? Or did he just use your sim card ? 
Oh boy. Are phone contracts transferable in Aus ? Thats a double whammy for you mate. Obviously, if you weren't coming back to Aus, you wouldn't have been paying. Idk, may be talk to the phone company, explain things and arrange to pay before you can land ?


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## Guest (Jun 27, 2013)

A phone bill will not stop migration even if it was millions $ 
Any summons they issue is civil not criminal which diac do not take into account. 
Any tax issues would be limited to your actual yearly tax return and evasion not any tax due on a phone bill. 
Still noit great to have hanging over your head but its done and won't stop you getting a visa.


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## happybuddha (Sep 28, 2012)

_shel said:


> A phone bill will not stop migration even if it was millions $
> Any summons they issue is civil not criminal which diac do not take into account.
> Any tax issues would be limited to your actual yearly tax return and evasion not any tax due on a phone bill.
> Still noit great to have hanging over your head but its done and won't stop you getting a visa.


I will Amen to that


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## findraj (Sep 24, 2012)

Ok, usually people write off $2500...it's not a lot, not like you robbed the bank and don't worry..Just try to talk to the phone service provider that you had lost the phone and had no clue it was misused..nevertheless you are willing to pay the debt only if they issue a new connection. Or let you re connect the old one..it's not going o be easy but hey you have to be nice and tell them you would pay $100 every month..don't pay everything at once!! Because then you lose any chance to get their trust back..it's a long shot but you will have to lie crazy that you didn't know and you must be given a chance and stuff..don't worry about 2 hours of eating their brains they will agree...please don't expect banks to give you credit based on it..take it slowly!!!please don't spoil credit for so small amount!! I know a friend who did this but he was a high roller at casino and defaulted CAD $50000..they couldn't do anything because he went back and brought more cash so he could live there without the need of credit card!! You know what happened to him...all the money deposited was wiped out before he could blink..it could turn scary, you never know


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## findraj (Sep 24, 2012)

Sorry I'm just typing too fast and not paying attention to proper sentence construction..hope it is understandable enough


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## tara.jatt (May 15, 2012)

Any link to back this claim? My understanding is its not Illegal (at-least in US)



happybuddha said:


> > One of my friend had taken connection on my name
> Thats illegal to do, at least in the US.


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## Guest (Jun 28, 2013)

It would certainly be illegal to open an account fraudulently using another persons name & details and not your own. To sign documents claiming to be someone you are not to obtain credit is fraud!


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## findraj (Sep 24, 2012)

tara.jatt said:


> Any link to back this claim? My understanding is its not Illegal (at-least in US)


Any proof claiming its legal??I'll go buy a sim on will smiths name...


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## tara.jatt (May 15, 2012)

Sorry for not setting context. I was replying to the Quoted statement, not in General. I'm not talking about opening connection without one's knowledge. If your "friend" got a connection on your name, and you about know it, chances are high that you have signed for this connection application. This is not illegal. 

So my point is, If you want to pay as you go, you can get connection in US, but if you want to be on postpaid (Free/subsidized smartphones with contract), a newcomer can not get it as he/she dont have history, So most of the people get phones on their friend's or relative's names, and that is not illegal.



_shel said:


> It would certainly be illegal to open an account fraudulently using another persons name & details and not your own. To sign documents claiming to be someone you are not to obtain credit is fraud!


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## tara.jatt (May 15, 2012)

So you mean to say dealers dont check your ID before issuing a Simcard?

And yes there is proof its legal, Take your friend to your service provider, ask the person to add a new line to your current plan, and mention that name on this line should be "Your Friend's Name", You will not be getting into any trouble for doing it because you are taking financial responsibility for that newly added line for your friend. 



findraj said:


> Any proof claiming its legal??I'll go buy a sim on will smiths name...


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## findraj (Sep 24, 2012)

Lol! Taking connection in another's name isn't possible..if new comers take connection on their relatives name then they are stupid because if the new comer commits any crime, kidnapping asking for ransom threat calls to some one the relative gets in trouble..because its on the relatives name and his Id is used..pay as you go still needs a persons name and some identification document..answering to your last question..accordong to you,they check id before issuing sim..so if the id belongs to me and I still use friends name, it won't work..If I use friends id assuming Its my Id and give him his name, and signing on his behalf that's fraud mister..


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## tara.jatt (May 15, 2012)

Sir, either you are not aware of how it works, or you are just assuming things.

You dont let people get connection on your name if you dont know them well. Its your responsibility to make sure, not system's. We are talking here about if it is possible to get a line for friend/family in System. What your Friend/Relative do with that line is not the topic of discussion here. 

What I've told you in previous post, go and try and then let me know the results. Sir there is a thing called add a line to your account in US, that is what I am talking about. Many people pool to save money on monthly services and still there is only one group owner. So again, Yes it is perfectly legal to add a new line for family/friend on your account. 



findraj said:


> Lol! Taking connection in another's name isn't possible..if new comers take connection on their relatives name then they are stupid because if the new comer commits any crime, kidnapping asking for ransom threat calls to some one the relative gets in trouble..because its on the relatives name and his Id is used..pay as you go still needs a persons name and some identification document..answering to your last question..accordong to you,they check id before issuing sim..so if the id belongs to me and I still use friends name, it won't work..If I use friends id assuming Its my Id and give him his name,that's fraud mister..


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## happybuddha (Sep 28, 2012)

Tara.jatt, I think, you are, ridiculously, mixing two separate things. 

Adding an extra line, adding an extra credit card by you standing as a guarantor is a different thing. Your friend taking a connection in your name, or you getting a connection in your name for your friend is illegal. Your intent is in play here. Also bear in mind, you are standing as a guarantor for everything. If that phone is used for a bomb attack, the feds are coming after you, if not the local PD. You cant say 'ahh well, I never knew what that guy would use the phone for'. I dont have the constitution of USA by heart, but watch enough TV shows and you will know. Ahh wait, Netflix connections can be shared. Hallelujah. 

A pre paid connection does not ask for a credit history. A post paid does. If you don't have enough history, use a pre paid connection (using a state issued ID) and pay for a secured card to build the history and do things the right way.


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## tara.jatt (May 15, 2012)

Sir, you are mixing the stuff here, why are you interested in a bomb attack with extra line. 

Original discussion was regarding getting connection for family/friend. You can get it done and you assume the financial responsibilities. It doesnt matter if you are adding a line or opening a new account. Whats illegal is that you are stealing your friend's ID and using it to get a new line. I am giving you proof, just google family plan on any major US service provider. If you say adding line for friend/family is illegal, all i am asking is a link confirming this, thats what i asked at first place. I am not trying to hurt your ego. I Apologize in advance. 

I am saying this because i have seen almost every new student get new connection on some friends/senior/family name. Telephone companies know about it, infact Stores near university campuses suggest this as a cheaper alternative for getting smartphones/ more features in less bucks. 








happybuddha said:


> Tara.jatt, I think, you are, ridiculously, mixing two separate things.
> 
> Adding an extra line, adding an extra credit card by you standing as a guarantor is a different thing. Your friend taking a connection in your name, or you getting a connection in your name for your friend is illegal. Your intent is in play here. Also bear in mind, you are standing as a guarantor for everything. If that phone is used for a bomb attack, the feds are coming after you, if not the local PD. You cant say 'ahh well, I never knew what that guy would use the phone for'. I dont have the constitution of USA by heart, but watch enough TV shows and you will know. Ahh wait, Netflix connections can be shared. Hallelujah.
> 
> A pre paid connection does not ask for a credit history. A post paid does. If you don't have enough history, use a pre paid connection (using a state issued ID) and pay for a secured card to build the history and do things the right way.


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## Guest (Jun 29, 2013)

Point is we are on the australia forum talking about what you can and can not do in australia and shouldn't confuse people into thinking you can do this there or in fact anywhere outside of the USA where their backwards practices of offering credit caused the GFC hence why they don't do such practices elsewhere in the western world!


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## bonkler (Oct 2, 2012)

Just to clarify something here:

In Australia you can contract a mobile plan and have somebody else using it legally. I had it done with Telstra and Vodafone. Since I didn't have a credit history here in Australia, my fiance signed the contract and nominated me as the user of that mobile/plan. 

The only problem is that since you are only "the user" you can't make any changes to the plan (move between different plans, get a new phone, transfer your number to another company and so on). It's not fraud as from the company's perspective if you nominate.

That said, if you are signing a contract so a friend/relative can use it, you are responsible of whatever he does with it. I've heard quite a few stories like the one posted here... so I would be really cautious of doing this with a 'friend.


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## applyoz (Apr 20, 2012)

_shel said:


> A phone bill will not stop migration even if it was millions $
> Any summons they issue is civil not criminal which diac do not take into account.
> Any tax issues would be limited to your actual yearly tax return and evasion not any tax due on a phone bill.
> Still noit great to have hanging over your head but its done and won't stop you getting a visa.



Completely agree. it is the same in UK as well.


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## Rotti404 (Jul 4, 2019)

Can someone please help me on something related to this. I studied in Australia in 2010 for 8 months and during that time i purchased a postpaid mobile plan with a phone. I don't remember how much i paid monthly. But due to personal circumstances, i went back to my home country. 

Due to the emergency i couldn't settle the bill or whatever contract that i had to pay. Service provider's name was 3 mobile which i think currently no more available and it has been acquired by Vodaphone.

Now i'm hoping to apply for the skilled migration and i want to know will that be an issue? Is there a way to check my credit history and settle it? Or this type of a small thing won't be an issue?

Thanks!


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## mt3467 (Mar 6, 2019)

The visa eligibility only mentions you will need to pay back the Australian government if you owe them anything, it doesn't mention private companies.

For Google:
_Usually a debt becomes statute barred from collection after 6 years - but that means that they cannot "commence" an action to collect it after six years has elapsed.
If they have already started collection action/or Judgement of the debt has been entered by a Court - a Judgement usually lasts for 12 years - so technically a debt remains collectable for up to 18 years..._

Difficult to know whether it will still show on your credit report and also whether your old credit history will re-attach to you when you return.


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## Rotti404 (Jul 4, 2019)

mt3467 said:


> The visa eligibility only mentions you will need to pay back the Australian government if you owe them anything, it doesn't mention private companies.
> 
> For Google:
> _Usually a debt becomes statute barred from collection after 6 years - but that means that they cannot "commence" an action to collect it after six years has elapsed.
> ...


Thanks for the reply


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