Of the millions of Aussies who are at risk of credit default in the next 12 months, young people are in the most trouble. Source: ThinkStock
Credit data provider Veda says young people are at most risk of credit default with more than 23 per cent of Gen Ys potentially facing financial trouble.
People living in the Ipswich and Logan-Beaudesert areas of Queensland and Blacktown in Sydney are at the highest risk of credit default, Veda says.
Five per cent of Queenslanders are at high to extreme risk of credit default, the highest in the country.
Veda has released a score between 0 and 1200 which summarises information available on a person's credit file, with a higher score meaning a person has better credit worthiness.
The highest scores in the index are found in southeast Tasmania, the Baulkham Hills and Hawkesbury in NSW and the Barossa-Yorke-mid-north region in South Australia.
Veda's marketing manager Belinda Diprose said many Australians don't know what is on their credit report and that certain types of information can stay on a person's credit report for up to five years.
The information on a person's credit report is used by telcos, utilities and lenders like banks when assessing credit applications, she said.
"If you find out what's recorded on your credit report, you can check whether it's accurate and you'll better understand where you stand if you want to apply for credit," Ms Diprose said.
About 80 per cent of people have never accessed their credit report, Veda says.
The company said the statistics were based on consumer research of 1000 Australians about their finances with Veda's analysis of 300,000 VedaScores.
