How to Remove a Late Payment Mark from Your Credit Report

 



Late payments can happen for many reasons like an unexpected expense, a missed reminder, or a banking delay. Once you catch up, the concern shifts to what remains on your credit report. Many Australians want to know if those marks can be removed and how to start the process. While you cannot erase accurate information, there are legal and practical ways to correct errors, improve your file, and limit the damage.

Understanding What Can Be Changed

Credit reporting rules in Australia allow accurate late payment entries to stay for two years. These records form part of your repayment history information. They cannot be removed simply because they are negative.

Removal or correction is possible only when:

  • The information is wrong (wrong amount, date, or account).

  • The provider made an error in how it reported.

  • Notices required by law were not sent before a default listing.

  • You have strong grounds for a goodwill review due to a proven one-off issue.

If you believe a mark was recorded incorrectly, your first step is to confirm the facts before making a request.

Step 1: Review Your Credit Report

Start by getting your free credit report from all three major bureaus — Equifax, Experian, and illion. Each bureau may have slightly different information. Look for:

  • The exact month the late mark was added

  • Whether the entry says “paid late” or “default”

  • Any duplicate or inconsistent listings across reports

Download the reports and keep copies in one folder with your payment records and receipts. This forms the foundation for your case.

Step 2: Check Your Payment History

Match your bank statements or payment receipts against what appears on the report. Sometimes a payment made within the 14-day grace period is still marked late because of timing differences.

If your records show the payment was made on time, or before the provider’s reporting date, you have solid grounds to request correction.

If you find that the payment was indeed late, focus on what caused the delay and whether it was a technical or communication issue rather than financial hardship. The more specific your explanation, the easier it is for a provider to review fairly.

Step 3: Contact the Credit Provider

Once you have your records ready, contact the credit provider that reported the late mark. Stay calm, polite, and factual. Explain the discrepancy or reason for review and include clear proof of your payment timing.

Providers have obligations under the Privacy Act 1988 (Cth) to ensure information is accurate and up to date. If they agree that the entry was added in error, they must notify all credit bureaus to amend your report.

Keep written confirmation of every communication, including dates, reference numbers, and contact details. This documentation becomes important if you need to escalate your case later.

Step 4: Dispute Through the Credit Bureau

If the provider does not fix the issue or fails to respond, you can lodge a dispute directly with the bureau that holds the entry. Each bureau offers an online form where you can upload supporting evidence.

The bureau will forward your dispute to the credit provider for verification. The provider must then investigate and respond, usually within 30 days. If they cannot verify the entry or confirm it was correct, it must be updated or removed.

Once resolved, you will receive written confirmation of the outcome. Keep this as part of your personal records.

Step 5: Escalate if the Issue Persists

When neither the lender nor the bureau resolves your dispute, the next step is to contact the Australian Financial Complaints Authority (AFCA). AFCA reviews disputes involving credit reporting and can require correction or removal if rules were not followed.

You should only escalate once you have given both the lender and bureau reasonable time to respond. Present all documents clearly to support your claim.

Step 6: Rebuild After Correction

Even when a late mark remains, its effect on your credit score reduces over time. Focus on rebuilding through consistent on-time payments, keeping balances below 30 percent of your credit limit, and avoiding new credit applications until your record improves.

If you have several marks or a complex credit history, a professional review can help identify errors and develop a recovery plan that fits Australian credit laws.

Read the Full Article

For a detailed breakdown of how to dispute credit errors, write goodwill requests, and handle complex cases, read here full article on Easy Credit Repair.

FAQs

Can accurate late payments be deleted?
 Accurate entries cannot be removed but will automatically disappear after two years.

Will paying off a debt remove a late mark?
 No. Paying updates the account to “paid,” which looks better to lenders, but the entry remains until it expires.

What if my provider does not respond?
 You can file a dispute with the credit bureau. If it still remains unresolved, escalate to AFCA.

Can I request goodwill removal?
 Yes, if it was a one-off delay caused by a clear reason such as a technical error. Some lenders may agree to remove it as a goodwill gesture.

Does a corrected entry raise my credit score?
 If a mistake is removed, your score may increase once the bureau processes the change.

Disclaimer

All information in this article is based on Australian credit reporting law and Easy Credit Repair’s research. It is provided for general education only and should not replace personal financial or legal advice. If you need support reviewing or correcting your report, please contact Easy Credit Repair.

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