Step 1: Get all three credit reports
Australia has three main credit reporting bodies: Equifax, Experian and illion. Each can hold slightly different information, and you're entitled to a free copy from each. Checking your own report doesn't affect your score.
Step 2: Know what stays and for how long
| Information | Generally kept for |
|---|---|
| Repayment history | 2 years |
| Credit enquiries | 5 years |
| Defaults (paid or unpaid) | 5 years |
| Serious credit infringement | 7 years |
| Court judgements | 5 years |
| Bankruptcy | 2 years after discharge or 5 years from the start, whichever is later |
| Debt agreement | 5 years from the date, or 2 years after it ends, whichever is later |
Check the current rules on the Office of the Australian Information Commissioner's website.
Step 3: Dispute genuine errors
- Debts that aren't yours, or duplicated listings.
- Defaults listed without the required notices, or for amounts under the threshold.
- Paid debts still showing as unpaid.
- Enquiries you didn't make, which may signal identity theft.
Contact the credit reporting body or the credit provider. Fixing a genuine error is free. If they won't fix it, you can complain to an external dispute resolution scheme.
Step 4: Deal with what's accurate
- Pay or arrange to pay defaults. The listing stays, but 'paid' reads far better.
- Settle court judgements and keep the proof.
- Get every repayment on time. Direct debits on payday help.
- Close unused credit cards. Lenders count your limits, not just balances.
- Stop new applications. Each one is an enquiry on your file.
- Clean up your bank statements. Lenders read them. Payday loans, gambling and constant overdrawn days hurt.
Step 5: Time it right
Six to twelve months of clean conduct can change your options substantially. We can check where you stand now, without a credit enquiry, and tell you whether to apply now or wait. See bad credit home loans.
Your bank statements matter as much as your credit report
Lenders read three to six months of your transaction history. Patterns that worry them, even with a clean credit file, include:
- Regular payday loan or buy now pay later repayments.
- Frequent gambling transactions.
- Dishonoured direct debits or regular overdrawn days.
- Large unexplained cash deposits.
- Spending that's higher than you've declared in your living expenses.
Comprehensive credit reporting works for you too
Since comprehensive credit reporting began, your report shows positive information as well as negatives, including two years of on-time repayments. That means every month you pay on time actively improves what a lender sees. It's the fastest legitimate way to rebuild.
What you’ll need
- Credit reports from all three bureaus
- Proof of paid debts
- Bank statements
Who it usually suits
- Anyone planning a home loan in the next 6 to 24 months
