Your credit report helps lenders understand your ability to pay for loans or credit cards. When you get a black mark on your credit score, it may affect your chances of getting approved for credit in future.
That's why it's important to monitor your credit report and make sure you get any incorrect black marks removed as soon as possible. If you notice an incorrect default on your credit file, you should follow the steps below to have it fixed.
Unfortunately, defaults and other black marks can only be removed from credit report if they've been reported in error. Legitimate defaults will remain on your credit report for up to 5 years.
How to remove a default from your credit report in 3 steps
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 incorrect 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.
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Elizabeth Barry is the lead editor for Finder. She has over 10 years' experience writing about a range of topics with a focus on personal finance. You’ll find her writing and commentary in a range of publications and media including Seven News, the ABC, MSN, the Irish Times and Singapore Business Review.
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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.
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.
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.
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
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!
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I there, Jason Hillier, calling. I was hoping that you guys could help us out with two credit defaults please, thank you cheers.
Hi Jason,
You’ll need to contact the credit agency directly to address this. You can find their contact details on their website:
Experian: https://www.experian.com.au/consumer/correction-process
Equifax: https://www.equifax.com.au/personal/corrections-portal
Best of luck!
How can I update my personal details?
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
How do I remove a blacklisted for life?
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
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?
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
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
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