What Can Affect Your Credit Score in Australia?

Credit scores in Australia move based on payment history, the number and timing of credit applications, the types and limits of credit held, and negative listings like defaults, court judgments, and insolvency events. Telecom, utility, and BNPL checks can add enquiries, while late payments and defaults weigh heavily. Repayment history is recorded monthly for 24 months, enquiries and defaults generally remain 5 years, and serious credit infringements can remain 7 years.


Key factors that move your score


Payment history

On‑time payments build trust. Late or missed payments can lower a score because repayment history information (RHI) is a core part of Australian credit reporting under comprehensive credit reporting. RHI is recorded monthly for regulated consumer credit and stays on file for 24 months

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Credit applications and enquiries

Each application for credit usually adds a hard inquiry to the file. This includes loans, credit cards, telco plans, utilities, and sometimes BNPL. Many enquiries in a short window can signal risk. Enquiries remain for 5 years, whether approved or declined.


Credit types, limits, and provider mix

The type of product (credit card, personal loan, mortgage, store finance) and the requested limit influence risk assessment. Higher limits and a profile heavy in short‑term credit can weigh more than a stable mortgage with clean payment history.


Defaults and public records

A provider can list a default when a payment of at least $150 is 60 days or more overdue and required notices have been sent. Paid defaults remain for 5 years and show as “paid.” Court judgments usually remain for 5 years, and serious credit infringements can remain for 7 years. Personal insolvency events (bankruptcy, debt agreements) typically remain for 5 years.


BNPL use

BNPL providers may run credit checks that show as enquiries. Late or missed BNPL repayments can be reported and may influence lender decisions. High BNPL usage can also affect affordability checks when applying for mortgages or personal loans.


Hardship arrangements

If a formal financial hardship arrangement is in place, a hardship flag appears next to RHI for 12 months. This lets future lenders understand why repayments changed during that period without guessing the reason.


How to improve your score: step by step

  1. Get your credit reports
  2. Order free reports from Equifax, Experian, and illion. Review personal details, enquiries, repayment history, defaults, judgments, and any insolvency data.
  3. Fix errors
  4. Dispute incorrect enquiries, duplicated listings, and paid debts not marked “paid.” Lodge disputes with both the credit provider and the credit reporting body. Keep written records and follow up until corrected.
  5. Pay on time
  6. Turn on direct debits or create calendar alerts so due dates are never missed. Even one late mark can hurt, and RHI tracks performance for 24 months.
  7. Space out applications
  8. Research first, then apply to the best‑fit lender. Avoid multiple applications in quick succession. If rate‑shopping, keep the window tight and targeted.
  9. Right‑size limits
  10. Keep credit limits practical for real needs. Request limit reductions on unused cards or lines of credit to reduce perceived risk.
  11. Act early in hardship
  12. If cash flow is tight, contact the lender before a payment is missed. Request a hardship arrangement that fits the budget. This can prevent a default and add a hardship flag instead of late marks.
  13. Clear small debts before default
  14. If a payment is overdue and approaching 60 days, prioritise it. Stopping a default listing protects the file from a 5‑year negative event.


Quick checklist

  • Pay every credit account on time, every month.
  • Track all open credit accounts and their limits.
  • Apply only when ready and necessary.
  • Check all three credit reports each quarter.
  • Dispute errors and update paid defaults to “paid.”
  • Contact lenders early if hardship is likely.
  • Use BNPL carefully and pay on time.


How long do listings stay

  • Repayment history: 2 years
  • Financial hardship flag: 12 months
  • Credit enquiries: 5 years
  • Defaults: 5 years (marked “paid” when cleared)
  • Court judgments: usually 5 years
  • Serious credit infringement: 7 years
  • Bankruptcy/insolvency: typically 5 years


Read a deeper guide here: factors affecting credit score in Australia 


Next steps

If help is needed, checking reports, removing errors, or planning a repayment setup that works, Easy Credit Repair supports clients across Australia with clear, step‑by‑step guidance. Check out our services or get a free quote.


Disclaimer: This article is based on research and our views only. It is general information, not legal or financial advice. For questions about a specific situation, please reach out.

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