There's a default listed on my credit report
A default can affect borrowing for years. Understand what it is and what you can do.
This guide helps you
- Understand what a default listing is and when one can be recorded
- Check whether the default against you was correctly listed
- Know the difference between removing and paying a default
- Find the free help available to you
- Avoid paid promises to 'wipe' your record
6 min
What's happening
A default is a note on your credit report that you owed a certain amount and did not pay it on time. In Australia, a payment default can generally only be listed once the overdue amount is above a set threshold, the payment is overdue by a defined period, and the provider has given you the required notices first. Always check the current rules for the exact figures and timeframes.
A default does not erase a debt, and it can make future borrowing harder while it stays listed.
Your first steps
Do not panic, and do not rush to pay anyone who phones you out of the blue. First, confirm the default is real and correctly listed.
- Get your credit report so you can see the exact listing.
- Check the amount, the date, and the lender named.
- Look for whether you were sent the required notices before it was listed.
Step by step
- Confirm the listing details against your own records.
- If it looks wrong, for example you never owed it or you were not given proper notice, lodge a free correction request.
- If it is correct, decide your approach to the underlying debt, which may include a payment arrangement or hardship support.
- Keep records of all contact.
- If you cannot resolve it with the lender, raise a free complaint with AFCA.
Watch out for
Paying a default does not remove the listing; it generally updates it to show the debt is paid. Be very cautious of any firm that charges a fee and claims it can remove a valid default. If the listing is accurate and was correctly made, it cannot simply be deleted on demand. Free options exist, so use them first.
Where to get free help
A financial counsellor can review the default with you for free through the National Debt Helpline (1800 007 007). Disputes can go to AFCA at no cost. Browse the relevant bodies or read the meaning of key terms in the glossary.
Key takeaways
- A default can generally only be listed once strict conditions are met.
- Check the amount, date, lender and whether you were given proper notice.
- Paying a default updates it rather than removing it.
- Free help and free dispute paths exist before any paid service.
Frequently asked questions
Can any small unpaid bill be listed as a default?
No. A payment default can generally only be recorded if the amount is over a set threshold, it is overdue by a defined period, and you were given the required notices. Check the current rules for the exact figures.
Does paying the default remove it?
Usually not. The listing generally stays but is updated to show the debt as paid, which can still look better to future lenders.
What if the default is wrong?
You can lodge a free correction request with the bureau or lender, and escalate to AFCA for free if it is not resolved.
This is general information, not legal or financial advice. Your situation is unique and rules can vary by state and over time — for advice on your circumstances, speak to a free financial counsellor (National Debt Helpline 1800 007 007) or get legal help.
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