An easy banking mistake many young Aussies are making could cost them their ability to buy a home if not immediately corrected.
Bank accounts that go into negative balances due to overdrawing or surprise banking fees can impact a person’s credit score if left unchecked for more than 60 days.
That simple oversight can lead to banks reporting customers to credit reporting bodies that can leave a black mark against a person’s credit score – something banks use to determine someone’s eligibility for home loans.
It is an issue that can catch many Aussies by surprise, particularly if they have moved on from an old account they no longer use without actually closing it.
Nikki Spyrou was shocked to find her account with a negative balance. Picture: TikTok
Nikki Spyrou was caught out by hidden fees with her bank thanks to her 30th birthday.
“F*** (Commonwealth Bank) for not sending me an email before my 30th birthday to remind me my account T&Cs are changing,” Spyrou said in a video.
“Oh my God. So, mainly I bank with Commonwealth Bank and I have a personal account that I only put money in when I need to spend it and I haven’t needed to use it for a while so I don’t check it.
“There was like $3 in there. I didn’t know that when I turned 30… these rules now apply to me: If I’m not depositing $2000 into that bank account in the month I get charged $4.
“So, because I only had $3-something in there and I was charged $4 I went into the negatives.”
Spyrou didn’t realise the account had a negative balance until 17 days later and immediately rectified the issue to prevent it becoming a bigger problem down the track.
Spyrou closed her Commonwealth Bank account after discovering the fees.
Spyrou had been a customer with CBA since she was a teenager, utilising an account that doesn’t charge customers a monthly transaction fee until after their 30th birthday.
It is believed CBA sends customers an email 30 days before they turn 30, informing them their fee waiver will end. But this is not sent if customers have opted out of marketing communications from the lender.
CBA isn’t the only big bank with age-related fees, however, each one is different.
Westpac has a $5 monthly fee that doesn’t impact customers under the age of 41, while ANZ has a similar fee that is only paid by customers between the ages of 26 and 59.
NAB and Macquarie Bank do not have the monthly fee.
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