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Do monthly repayments matter to your credit file?

Making repayments on time to your credit accounts is important, but what impact can it have on your credit reputation?

Before the introduction of Comprehensive Credit Reporting (CCR) in 2014, only negative events were recorded on your credit file. This included defaults, bankruptcies, court judgments and similar events that could make you look like a risk to prospective lenders. Since 2014, CCR has included other records to help lenders better understand a borrower's behaviour. One new listing is your repayment history.

How can I find out my repayment history?

You can check your full credit report for free with finder. On your report, you will see a record of your current and past credit accounts and any repayments history the credit provider has reported to Experian.

If you are making your repayments on time, you will see a green tick like this:

Current credit accounts in your credit report

You may also see other symbols depending on how you've been making repayments to that account:

How long does repayment history information stay on my file?

Repayment history information will remain on your credit file for two years. One or two late payments will not necessarily place you in the "bad credit" basket, but consistently making late payments will be a red flag to lenders and may affect your ability to access credit.

How long information stays on your credit file

How do my repayments affect my credit report?

When lenders access your credit file they want to ensure the information you supplied in your application is accurate and that you will be able to manage the debt you are applying for. If you consistently make late repayments it can indicate that you can't manage the debt you have, while making repayments on time can indicate to a lender that you're a responsible borrower.

If you have a default listed on your file you can also keep making your repayments on time to help build up a positive credit record. Ultimately, repayment history is just another part of the risk assessment that lenders undertake when assessing your ability to manage your debts.

Why can't I see my repayment history information?

While CCR was introduced in 2014, not all credit providers have begun supplying data to credit reporting bodies, such as Experian. However, it has been mandated that the big banks supply comprehensive data (such as repayment history information) starting from July 2018. Find out what you need to know about comprehensive credit reporting here.

Now you have a better understanding of how repayments affect your credit file (and credit score), you can check both for free.

Free credit score & report

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

Get your credit score and comprehensive report now!

Image: Shutterstock

Elizabeth Barry

Elizabeth is the Fintech Editor for finder and writes about innovations in financial products and services – think banking products that are easier to access, faster, cheaper and personalised. She started writing about personal finance over five years ago and found it was her passion (which was a surprise to no one more so than herself).

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8 Responses

  1. Default Gravatar
    StephenDecember 2, 2018

    Today I obtained my Credit Score and Credit report from you – thanks.

    1. My credit report shows only 1 Credit Provider (interest free store card – low limit) in a shaded grey box with no symbols (eg; green tick or red cross) displayed in the box. Your article relevant to this topic seems to give the impression that if you are making your repayments on time, which I am, then you should see a green tick. What inference could I draw from no symbol being displayed.

    2. In addition to the above interest free store card, I also have a Bank Credit Card with a low limit, a very small personal loan and a relatively small mortgage. I have excess repayments in respect of my personal loan and mortgage as I have regularly been paying over and above the minimum monthly payments. My credit report, however, shows no current credit accounts whatsoever, including the aforementioned interest free store card. Can you tell me why this might be?

    Thanks.

    • finder Customer Care
      JohnDecember 4, 2018Staff

      Hi Stephen,

      Thank you for reaching out to finder.

      When you get on of our free credit reports via the finder website, the data is extracted from Experian who is one of the credit reporting bureaus in Australia. If a correction or request needs to be made for your report, you may need to contact Experian directly for them to address your request. Hope this helps!

      Cheers,
      Reggie

  2. Default Gravatar
    JamesAugust 9, 2017

    If you have a default, and enter into a payment plan, does it stay a default until its paid or does it move to something else?

    • Default Gravatar
      ArnoldAugust 9, 2017

      Hi James,

      Thanks for your inquiry.

      Usually if a default is unpaid it will still reflect on your credit file. Only if this is paid will it reflect that the payment was made.

      Hope this information helped.

      Cheers,
      Arnold

  3. Default Gravatar
    AllanMay 15, 2017

    How can I tidy up and conceal bad credit history ?

    • Default Gravatar
      MIKEJune 24, 2017

      Can a pensioner get a credit card?

    • finder Customer Care
      RenchJune 24, 2017Staff

      Hi,

      Thanks for your inquiry.

      Yes, you can apply for a credit card. However, you may be required to meet some other terms and conditions and provide additional documents, so it’s important to do your research before applying for a credit card. You may check this page for helpful info and compare your options.

      Hope this helps.

      Cheers,
      Rench

    • finder Customer Care
      HaroldMay 15, 2017Staff

      Hi Allan,

      You may want to consider the options listed below to help you improve your credit history.
      Five ways to improve your credit rating
      Improve Your Credit Score

      I hope this information has helped.

      Cheers,
      Harold

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