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
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 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.
Finder survey: Have people ever challenged and fixed an error on their credit 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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Ask a Question
My credit core is 315 I have one paid default. Will it improve when the default is removed?
Hi Georgina,
Thanks for your question.
Please note that overdue accounts listed as a payment default will appear in your credit file for 5 years. As long as it is there, it may affect your credit score.
If you want to know the full details of your credit score including the defaults listed on it, you can request a free credit report through our website.
Cheers,
Anndy
My son had to go through a debt conciliation 2 years ago and currently has the opportunity to purchase a home. Will the credit repair process be suitable for his situation? They are now in a position where they have 2 stable incomes.
Regards,
Andrew
Hi Andrew,
Thanks for your question.
Your son’s credit file is used by lenders to judge his creditworthiness. So if he has a bad credit record in the past, it is important that he must focus on improving his finances before he will start applying for a new line of credit or loan. He can do this with the help of a credit repair agency. Please feel free to visit how credit repair can be done where you can find invaluable information on.
I hope this is helpful.
Cheers,
May
Hi,
My name is in default list because of late payments of credit card and personal loan. Both payments been paid and accounts been settled already but they have put my name in default list and now I can’t get any home loan. I have already got Veda report which shows all details. How can I get off my name from the default list before 5 years so I can apply for new home loan?
Many thanks.
Hi Iron,
Thanks for your inquiry.
Credit repair is one way to have listings removed from your file, but keep in mind that this removal is not guaranteed. Credit repair agencies are only able to remove listings that have been put on your file incorrectly or without correctly complying with credit law. Please refer to the following page for more information on the credit repair process.
Cheers,
Jonathan
I have a paid judgment debt on my credit file. I believe this to be unfair, yes I had a disagreement with a lawyer over excessive charges, they lodged judgement against me. The debt is paid. How do I have this removed?
Hi KB,
Thanks for your question.
Credit repair is one way to have listings removed from your file, but keep in mind that this removal is not guaranteed. Credit repair agencies are only able to remove listings that have been put on your file incorrectly or without correctly complying with credit law.
I hope this has helped.
Thanks,
Elizabeth
Need help asap