A forgotten $7.50 delivery fee has cost a UK mum a home loan – and mortgage experts warn every day Aussies can be tripped up just as easily.
Kelly Miles, 33, discovered a “black mark” on her credit file when she and her then-partner applied for a mortgage.
She traced it back to a $7.50 (£3.99) delivery charge linked to a buy now, pay later purchase of an iPad mini worth about $935 (£500).
She’d paid off the device within six months, but the small delivery fee – left off her repayment plan – went unpaid and eventually appeared as a negative listing on her credit report.
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“We wanted to buy so we went ahead and put the mortgage application in which is when we discovered this big black mark on my credit file,” Kelly shared on TikTok.
“But I never had notification of this – I don’t remember seeing a single letter.”
A UK mum was horrified to discover she was refused a mortgage for her new home because she’d forgotten to pay a tiny $7.50 charge. Source: @Kellyfamilyfinance/TikTok
That single oversight meant lenders rejected her application.
In the UK, such black marks and defaults typically remain for six years, and Kelly says she was locked out of borrowing for that period.
Her ex ultimately bought the home in his name, while she contributed to the deposit after saving for three years.
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The mum-of-two now checks her credit score regularly to avoid it happening again.
“I was disappointed and I was annoyed in the sense that someone could put that mark against my name without me having any knowledge or awareness of it,” she said.
The experience has put her off buy now, pay later altogether and she now checks her credit score every month.
Why this could happen in Australia
Money.com.au mortgage expert Nick Burgess said tiny financial slip-ups are more common – and more damaging – than many Australian borrowers realise.
“Certain missed payments, even something as small as $5, can get your home loan application rejected, especially if it ends up on your credit file or pushes your bank account into negative,” he said.
“Lenders aren’t just looking at the amount missed; they’re looking at what it says about your overall money management. Any overdrafts, dishonoured payments, or missed credit obligations can raise concerns, particularly under Australia’s strict lending standards.
“I had a case where a first-home buyer forgot to cancel a free trial for a streaming service, the monthly fee came out unexpectedly, and their account slipped into the red. The lender knocked them back initially.
Money.com.au mortgage expert Nick Burgess.
“I had another borrower who’d paid off their Latitude credit card in full and assumed the account was completely settled, only to later discover ongoing monthly account-keeping fees were still being charged.
“Those unnoticed fees triggered missed repayment listings on their credit report, and despite us providing supporting documents to explain the situation, the lender refused to budge. It was like drawing blood from a stone.”
While these issues can often be explained with supporting evidence, Mr Burgess said some lenders are incredibly strict when it came to credit impairments.
“Late or missed payments can stay on your credit file for up to two years, so they’re often a far bigger issue than simply slipping into negative on your transaction account,” he said.
“If your account briefly goes into overdraft, most lenders just want to see around three months of clean bank statements to show the issue has been resolved.
“But if a missed repayment is formally listed on your credit file, it can have a much longer-lasting impact on your borrowing options.”
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