How to clear a default on your credit history

Have a default on your credit history that's weighing your score down? You can remove these if there's been an error on your report.

We’re reader-supported and may be paid when you visit links to partner sites. We don’t compare all products in the market, but we’re working on it!

Your credit report helps lenders understand your ability to pay for loans or credit cards. When you get a black mark on it, it may affect your chances of getting approved. A default can be removed if there's been an error. If this is the case, call up your credit provider and have your evidence ready. Once they've approved it, your credit report shouldn't have that default listed anymore.

Unfortunately, if your default is legit you'll have to wait out the five years until it disappears from your file. But don't worry, there's loads of ways to repair your credit score.

How to repair your credit report in 3 steps

Step 1. Order a copy of your credit report

The first step is to review your credit report. You can check your credit report and credit score (provided by Experian) for free with finder and revisit it at any time in your Finder account. We'll also send you updates if anything on your credit report changes.

If you prefer to order your credit report directly from the credit bureau, you also have that option. You are entitled to one free credit report per year and it takes around 10 working days to receive. You can order it from Experian, Equifax or Illion (formerly Dun & Bradstreet).

Step 2. Identify the black marks and defaults

Once you’ve received a copy of your credit report, look for any incorrect black marks or defaults. This refers to information on your credit report that may indicate that you've had issues repaying your credit including:

  • Missed payments. Your credit report retains repayment history information from the past two years. This means that any missed payments on your mortgage, personal loans, or credit card accounts during the last two years will show up your credit report.
  • Overdue accounts or payment defaults. Overdue amounts of $150 and above are recorded once they are 60 days overdue. Defaults can damage your credit report as they indicate your inability to make timely repayments. These listings remain on file for five years.
  • Clearouts or serious credit infringements. These are overdue accounts or payment defaults where the credit provider has not been able to contact you. Clearouts and serious credit infringements stay on your report for seven years if they remain unpaid. If paid, these listings only remain on your report for five years and are defined as “payment defaults”.
  • Writs and summons. This refers to if you've been summoned to court to settle a debt. They stay on record for five years.
  • Court judgments. Court judgements including bankruptcies, personal insolvencies or debt agreements can stay on file for five years or longer. This depends on when the case is officially resolved. For instance, bankruptcy goes off record two years from your date of discharge or five years from your date of bankruptcy, whichever is later.
  • Credit enquiries. Applications for any form of credit (including personal loans, mortgages and even utilities) can remain on your credit report for up to five years, regardless of whether they are approved. That’s why it’s important to check if you're eligible before you apply for a line of credit. If your application is rejected, wait a few months before applying again.

Step 3. Remove the black marks and defaults

Listings can only be removed from your report if they're incorrect or after the rightful duration. If you identify an incorrect mark on your credit report, you can contact the credit reporting agency to have it removed. If you're not comfortable doing this yourself, you can enlist the help of a credit repair agency.

Credit repair companies are experts at spotting these errors and may have a better chance of removing false listings. These companies charge fees and there are no guarantees they can remove the listing. Before you get help from a credit repair agency, compare your options and confirm whether or not benefits outweigh the costs.

If the black mark is legitimate, confirm when it was listed on your report and how long it will be until it's removed from your account. In the time being, you may want to hold off from applying for any other credit products and concentrate on repaying any existing debts. This will help improve your credit score until the defaults or black marks are removed from your report.

Do you qualify for credit repair?

Answer these four simple questions to find out.

1. Have you had finance rejected recently?
2. Were you seeking finance for a property or home?
3. Do you have savings/deposit?
4. Is there a possibility you have a black mark on your credit file?

Congratulations!

You qualified for complimentary assessment by Princeville Credit Advocates.


Please enter your details below to be contacted by a credit repair advocate.

By submitting this form, you agree to finder.com.au Privacy and Cookies Policy and Terms of Use, Disclaimer & Privacy Policy

We’re sorry

Unfortunately, it looks like you don’t meet the criteria for a complimentary assessment by Princeville Credit Advocates.


If you’d like to entre your details below, we’ll be able to notify you when new products become available that may be more suitable.

By submitting this form, you agree to finder.com.au Privacy and Cookies Policy and Terms of Use, Disclaimer & Privacy Policy

You can call a credit repair company for a consultation at any time, but remember that credit repair can only remove incorrect or illegitimate listings. There’s no guarantee that credit repair will work for you and it's important to compare your options.

Want to consider debt consolidation?

Unfortunately, Fox Symes won't be able to help you at this stage. For more information on improving your credit learn more here.

Do you have a home loan?
Do you have unsecured debts of $10,000 or greater?
Do you receive a regular income?
Have you been bankrupt in the last 10 years?
Enter your details to speak to an expert from Fox Symes

By submitting this form, you agree to finder.com.au Privacy and Cookies Policy and Terms of Use, Disclaimer & Privacy Policy
Fox Symes Logo

Fox Symes can help you take back control of large debts by consolidating what you owe.

Fill out this form to find out if you can benefit from:

  • Reducing your repayments
  • Saving interest
  • A range of debt consolidation options

Read our thorough guide on credit repair

Credit score in the Finder app

Want a better way to check your credit score?

Banks know your credit score, so why shouldn't you? The Finder app updates your score automatically each month and lets you know if it changes. Pop in your phone number below to get your download link.

Free credit score & report

Lenders know your credit score, so why shouldn't you?

Get your credit score and comprehensive report now!

Ask an Expert

You are about to post a question on finder.com.au:

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • finder.com.au is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked

Finder only provides general advice and factual information, so consider your own circumstances, or seek advice before you decide to act on our content. By submitting a question, you're accepting our Terms of Use, Disclaimer & Privacy Policy and Privacy & Cookies Policy.

41 Responses

    Default Gravatar
    BennetApril 2, 2019

    How can I update my personal details?

      Default Gravatar
      NikkiApril 3, 2019

      Hi Bennet,

      Thanks for getting in touch with Finder! To update your personal details in your credit report, you must contact the credit bureau where your details are not updated and you can find their contact details directly from their website.

      Hope this helps!

      Best,
      Nikki

    Default Gravatar
    JeremyMarch 21, 2019

    How do I remove a blacklisted for life?

      Avatarfinder Customer Care
      JeniMarch 23, 2019Staff

      Hi Jeremy,

      Thank you for getting in touch with Finder.

      Please note that your credit report retains black marks like repayment history information from the past two years. A default will stay for up to five years.

      If you find that there’s an error on your credit history, you need to contact your credit provider directly to help you sort that out. In the event that you need further assistance on removing black marks, you may search for a credit repair company who will be assisting you in removing black marks on your credit history. Please note that credit repair agencies can sometimes charge large amounts to review and make corrections to your credit report. Ensure that the agency you choose charges reasonable fees to fix problems with your credit file.

      I hope this helps.

      Thank you and have a wonderful day!

      Cheers,
      Jeni

    Default Gravatar
    CraigDecember 3, 2018

    Just a quick query, the default that is on mine was paid in full in 2012. So just wondering why it’s on the report 4 years later?

      Avatarfinder Customer Care
      JeniDecember 3, 2018Staff

      Hi Craig,

      Thank you for getting in touch with Finder.

      Please note that a default listing will remain on your credit file for five years while a serious credit infringement will remain there for seven years.

      I suggest that you check first with the credit provider you had this default with if they have updated your listing. If they do, you may contact our provider – Experian, to correct this.

      I hope this helps.

      Please feel free to reach out to us if you have any other enquiries.

      Thank you and have a wonderful day!

      Cheers,
      Jeni

    Default Gravatar
    SharlieNovember 6, 2018

    A year ago I wanted to complete a balance transfer of my 20000 credit card I was declined by the multiple banks I applied for but couldn’t understand why so applied for a few more then got my credit report which had 2 fraudulent overdue electricity accounts under my name, these were removed off my credit report as fraud but now Ive got multiple credit card applications on my credit file due to the fraud, can these be removed due to the circumstances that there was 2 fraudulent debts affecting my credit account? thank you

      Avatarfinder Customer Care
      JohnNovember 8, 2018Staff

      Hi Sharlie,

      Thank you for reaching out to finder.

      Yes, you are correct that a credit report correction can be made since the credit card application have been made through fraud. You would need to contact the credit bureaus directly to start the process of having a credit report correction made. Hope this helps!

      Cheers,
      Reggie

    Default Gravatar
    AssadullahSeptember 28, 2018

    Hi how can I remove my credit fault and black mark, and how much have cost?

      Default Gravatar
      NikkiSeptember 28, 2018

      Hi Assadullah,

      Thanks for your message and for contacting finder.

      As per the information above, credit repair agencies are experts at spotting these errors and may be more effective at repairing your report than you might be. But these companies can be costly to engage, so the following steps above will help if you decide to attempt DIY repairs on your credit file.

      Also, the costs are dependent on every situation and if you go for credit repair agencies, it will cost more. You may read the “Important points to consider before calling a credit repair specialist” to help you minimise expenses.

      Hope this helps! Feel free to message again should you have further questions.

      Regards,
      Nikki

Go to site