If you have a poor credit score or an error in your credit report, it may affect loans or credit you apply for. You have a right to get errors fixed for free, and you can arrange this yourself.
What you can get fixed (for free)
Here are some of the typical errors in credit reports. You can get these fixed for free.
Errors by the credit reporting agency
The credit reporting agency may have reported your information wrongly. For example:
your name, date of birth or address needs updating
a debt is listed twice
the amount of a debt is wrong
To fix this kind of error, contact the credit reporting agency. They may be able to fix it straight away or help you get it changed.
Errors by the credit provider
A credit provider may have reported information wrongly. For example, they:
incorrectly listed that a payment of $150 or more was overdue by 60 days or more
did not notify you about an unpaid debt
listed a default (an overdue debt) while you were in dispute about it
didn’t show that they had agreed to put a payment plan in place or change the contract terms
created an account by mistake or as a result of identity theft
To fix this kind of error:
Contact the credit provider and ask them to get the incorrect listing removed.
If the credit provider agrees it’s wrong, they’ll ask the credit reporting agency to remove it from your credit report.
If you can’t reach an agreement, contact the Australian Financial Complaints Authority (AFCA) to make a complaint and get free, independent dispute resolution.
If you’re struggling to get something fixed, feel free to contact us on .
What you can’t change or remove
You can’t change or remove any information on your credit report that is correct — even if it’s negative information.
All payments you’ve made during the last two years — on credit cards, loans or bills, whether you paid on time or not.
Payments of $150 or more that are overdue by 60 days or more — these stay on your report for five years, even after you’ve paid them off.
All applications for credit cards, store cards, home loans, personal loans and business loans — these stay on your report for five years.
For a full list, see what’s in your credit report.
Check before you use a credit repair company
You may see ads from credit repair companies offering to fix errors on your credit report about credit products (like credit cards).
Before you go ahead, check the credit repair company is licensed on ASIC’s website. Choose ‘Credit Licensee’ or ‘Credit Representative’ in the drop-down menu when you search.
Only deal with a licensed credit repair company.
You don’t need to pay a credit repair company to clean up errors in your credit report. They may charge you high fees for things you can do by yourself for free. Paying a credit repair company may not improve your credit score.
How to improve your credit score
If your credit score is low, there are steps you can take to help improve it. You can:
lower your credit card limit
limit how many applications you make for credit
pay your rent or mortgage on time
pay your utility bills on time
pay your credit card on time each month — either pay in full or pay more than the minimum repayment
As you do these things, your credit score will start to improve. So you’ll be more likely to be approved next time you apply for a loan or credit.
If you’re struggling to pay bills and are getting into more debt, talk to us on . They can take you through the options and help you make a plan.
Reproduced with the permission of ASIC’s MoneySmart Team. This article was originally published at https://moneysmart.gov.au/managing-debt/credit-repair
Important note: This provides general information and hasn’t taken your circumstances into account. It’s important to consider your particular circumstances before deciding what’s right for you. Although the information is from sources considered reliable, we do not guarantee that it is accurate or complete. You should not rely upon it and should seek qualified advice before making any investment decision. Except where liability under any statute cannot be excluded, we do not accept any liability (whether under contract, tort or otherwise) for any resulting loss or damage of the reader or any other person. Past performance is not a reliable guide to future returns.
Any information provided by the author detailed above is separate and external to our business and our Licensee. Neither our business nor our Licensee takes any responsibility for any action or any service provided by the author. Any links have been provided with permission for information purposes only and will take you to external websites, which are not connected to our company in any way. Note: Our company does not endorse and is not responsible for the accuracy of the contents/information contained within the linked site(s) accessible from this page.