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.
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).
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:
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.
| Response | Male | Female |
|---|---|---|
| No | 86.14% | 80.95% |
| Once | 7.03% | 13.29% |
| Twice | 4.82% | 4.96% |
| Four times or more | 1% | |
| Three times | 1% | 0.79% |
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I have 2 paid defaults under $500 each and want to apply for a home loan I have a good credit history with the bank and so does my partner
We have 20% deposit, what are our chances of getting approved
Hi Lee,
Thanks for reaching out.
If your defaults have been paid they will still show up as paid defaults on your file for up to five years. The success of your loan will depend on the lender’s policy.
If you have defaults listed on your credit report, here are some things you can do to improve your chances of being approved for a home loan.
You can read further and compare lenders from our bad credit home loans. In addition to that, as you have mentioned a 20% deposit on hand, you may consider lenders offering 95% Home Loans as this will display lenders that require just at least 5% deposit. A higher deposit may increase the chance of getting approved for a loan. Alternatively, you can speak with a mortgage broker to discuss your options.
Cheers,
Joanne
Hi there I have found out I got a default against me wondering how I clear it up thanks you
04317713
Hi Darren,
Thank you for reaching out to Finder.
If you haven’t yet, you can request a free credit report and receive it in 10 working days to confirm the defaults that you may have on file.
If you prefer to DIY, you may report the incorrect listings by initiating an investigation by the agency that has this mistake on file.
You can possibly negotiate with the credit provider for a more manageable payment plan.
Credit repair agencies are experts at spotting these errors and may be more effective at repairing your report so you may want to consider hiring them to assist you.
I hope this helps.
Best,
Maria
My husband had an mbna credit card that he was paying each month until he was made redundant to a plan was put together with mbna and himself at half the amount each month, which he paid each month until he got a letter from a debt collector Pra, knew nothing of why this had been handed to them and no warning. Can they do this ? 2015 this happened and we were still unaware that a default was added to his credit file until last month when we applied for a mortgage as he paid the company off in full at the beginning of the year and was told from the company your credit file from us will be clear after 12 weeks. Which it isn’t and they have also added a default for the same amount even though it’s paid in full . Our house has been sold and we can’t get a mortgage
Hello Nicola,
Thank you for your inquiry today. I know this is a sensitive obstacle that you and your husband are both facing.
It is imperative for lenders to inform their clients prior endorsing the debt to a third-party collection agency or to a law office. Usually, they need to send you several notices for that. These notices don’t need to be letters, it can be phone calls, or even email, so it is important that you don’t ignore them in your mailbox and voicemail.
Usually, once the debt has been paid, and there was an agreement for that, the creditors may declare it on the credit file as “settled”, “paid as agreed”, or “paid”. It really varies. If they declared something you believe should not be the case, you may need to go back to them and ask to update their declaration.
If you need further assistance, you may consult a credit repair agency to resolve this, but take note there is no assurance it can be fixed on your favor and it may entail significant costs.
Hope this helps.
Cheers,
Jonathan
Thank Jonathan, sorry but no emails or phone calls received, just one letter from the debt collector saying that they have now got his debt and to set up a direct debit with them
Hi Carter2005,
Thank you for following up.
It is unusual for any lender to not make any early attempts to collect a debt. If you haven’t received any prior notification, such as phone calls or emails, it is either you opted out or have not given them valid contact information.
Nevertheless, the endorsement to a legal or third-party collection agency is usually at a late stage and doesn’t absolve the client’s responsibility to proactively contact their lender, instead of letting the debt go further delinquent.
You may contact RBA to know if their process has been compliant with existing regulations.
Hope this helps.
Cheers,
Jonathan
I have already paid my default off but it’s still on my credit report. Is there any way to get rid of it? I want to clear my report cause I want to go for a home loan.
Hi Happy,
Thanks for reaching out.
Unfortunately, overdue amounts of $150 and above are recorded once they are 60 days overdue and these listings remain on your file for five years. Also, you can’t repair or remove any valid listings on your file.
While you already have a negative listing, you can still improve your credit score in so many ways. To better monitor your credit score, you may also request a free credit report copy through our website.
I hope this helps. Should you have further questions, please don’t hesitate to reach out again.
Have a wonderful day!
Cheers,
Anndy
i have a personal loan that i haven’t made repayments on for quite some time, so i am sure i have a black mark on my credit score.
Once i manage the repayments how long will the black mark remain on my credit score? will the black mark only be removed once the loan is re-payed or can it be removed sooner?
Hi Zoe,
Thanks for your question.
Generally, overdue accounts listed as a payment default will stay on your credit file for five years. You can learn more about that from our guide regarding credit files.
The black marks, meantime, can only be removed from your file if they are incorrect and that no credit agency can guarantee that they will be able to remove listings from your file.
I would suggest that you request a credit report through our website for free. Do this so you can check all the information in it and see if there are any incorrect listings or details and what could be done to improve your score.
Basically, you can improve your score by paying off your debts (credit card and loans) and utility bills on time.
Cheers,
May
Thank you for your reply.
Does the 5 years start from the date that the loan has been settled or from the date I was first in default?
I most likely have been in default for 4 years now, however haven’t made any payments since I was in default.
Hi Sam,
Thanks for getting back.
The five years will start from the time that your default was listed on the credit file.
Cheers,
May