Step 1 · Understand it
Bad credit means your credit file shows you've had trouble paying something in the past, like a default, a court judgment or late repayments. It can also mean your credit score has dropped from applying for credit too often.
What's a credit file?
A record of how you've used credit, kept by credit reporting bodies like Equifax and Experian. It includes your credit score, the credit you've applied for, your repayment history and any negative listings.
Who looks at it?
Banks, lenders, phone and utility companies, and some landlords check it when you apply. It helps them decide whether to approve you and what rate to charge.
Why it matters
Bad credit can mean being declined for a home loan, car loan or credit card, or paying a much higher interest rate if you are approved.
Most of the time it comes from things nobody plans for: losing a job, illness, a divorce or relationship breakdown, or a period of financial hardship. It doesn't make you a bad person, and it doesn't have to follow you forever.
What's holding you back
Paying the debt doesn't remove the listing, it's only updated to "paid". And listings aren't always recorded correctly.
5 years
Defaults
5 years
Court judgments
7 years
Clearouts
2 years
Late payments
5 years
Credit enquiries
Bad credit calculator
See how much more you could pay with a default, judgment or late payments on your credit file, compared with a clean one.
Step 2
Everyone in Australia can get a free copy of their credit report. It's the best place to start, so you can see exactly what's on your file.
Get your free report →Get a free assessment. We'll tell you what could be removed, with an estimated success rate, fees and timeframe.
Free download
How to keep your credit file healthy
Our free one-page guide. No sign-up needed.
Keep Your Credit Healthy
6 tips, how long listings stay on your file, and what can be removed.
Download PDFWant a personalised look at your file? Get a free credit assessment