A past credit problem doesn't have to stop you buying a home. What matters most to lenders is what happened, how long ago it was, and how you've managed money since. This page explains what's on your credit report, how long it stays there, and what lenders look at, with links to the official sources.
Who this is for
- People with a default on their credit report, paid or unpaid
- People with missed or late repayments in the last two years
- People who have been through a debt agreement
- People who have been bankrupt and are now discharged
What's on your credit report, and for how long?
| Information | How long it stays |
|---|---|
| Repayment history (missed or late payments) | 2 years |
| Defaults | 5 years |
| Credit enquiries (applications for credit) | 5 years |
| Court judgments | 5 years |
| Serious credit infringements | 7 years |
| Debt agreements | 5 years from the start, or 2 years after it ends, whichever is later |
| Bankruptcy | 5 years from the start, or 2 years after it ends, whichever is later |
| Financial hardship information | 1 year |
As at 27 October 2026. Source: OAIC.
What do lenders look at?
Every lender has its own policy, but most ask the same questions:
- What happened? A one-off default from a disputed phone bill reads very differently to several unpaid debts.
- How long ago? Older problems generally matter less than recent ones.
- Is it paid? A paid default stays on your report, but it's updated to show it's paid.
- How have you managed since? On-time repayments, steady savings and stable income all help.
Some lenders specialise in borrowers with past credit problems. Their loans can suit people that mainstream lenders turn away, but they often come with higher interest rates or fees, so they're worth comparing carefully.
Steps you can take now
- Get your credit reports. Equifax and Experian must give you a free copy once every 3 months.
- Fix anything that's wrong. You have the right to get errors corrected for free, through the credit provider or the credit reporting body. If you can't resolve it, the Australian Financial Complaints Authority (AFCA) offers free, independent dispute resolution.
- Pay on time from now on. A payment counts as missed on your repayment history if it's more than 14 days late.
- Avoid applying for credit repeatedly. Each application shows as an enquiry on your report for 5 years.
- Be careful with credit repair companies. They can't remove correct listings, and you don't need to pay anyone to fix errors.
Guides for your situation
- Can I get a home loan after bankruptcy? When bankruptcy ends, how long it stays on your credit report, what lenders look at after discharge, and the steps that help you get a home loan again.
- How long do defaults stay on your credit file? A default stays on your credit report for 5 years, even once it's paid. What counts as a default, what lenders look at, and how to fix errors for free.
Calculators
- Borrowing power calculator Estimate how much you could borrow from your income, expenses and debts, using the same 3% buffer lenders use.
- Mortgage repayment calculator Work out weekly, fortnightly or monthly repayments and the total interest, principal and interest or interest-only.
- Offset account calculator See how much interest your savings in an offset account could save, and how much sooner you could pay off the loan.
- Extra repayments calculator See how much interest extra repayments could save, and how much sooner you could own your home.
- Interest-only vs principal and interest calculator Compare interest-only and principal and interest repayments, and see the extra interest over the loan.
- Refinance calculator Compare your current loan with a new rate: the change in repayments and interest, and when the switching costs are covered.
- Equity calculator Work out your equity and LVR, how much equity you might be able to use, and what it could mean for buying another property or your next home.
- NSW stamp duty and First Home Guarantee calculator Work out NSW stamp duty, including first home buyer exemptions and the foreign buyer surcharge, and check the First Home Guarantee.
- Can I get a home loan? Check your situation Five quick questions on your visa, income, credit history and deposit: see what lenders usually look at for someone like you.
How MoneyGenie helps
- Looks at your credit report with you, confidentially and without judgement, before anything goes to a lender.
- Tells you honestly which lenders may consider your situation now, and what would open up more options later.
- Prepares an application that explains what happened and how things have changed since.
Nabita compares options from MoneyGenie's panel of 35+ lenders, tells you upfront which are realistic for your situation, and handles the application with you through to settlement. Our service is generally at no cost to you, as we're paid a commission by the lender, which we disclose to you upfront. Details are in our Credit Guide, available on request. Talk to Nabita: call 040 110 1608 or send an enquiry.
Call 040 110 1608 Send an enquiryFrequently asked questions
Can I get a home loan with bad credit?
Sometimes, yes. It depends on what's on your credit report, how long ago it happened and how you've managed since. Some lenders consider applicants with past credit problems, usually with conditions such as a larger deposit or a higher interest rate.
Can a credit repair company remove a default?
Not if it's correct. Moneysmart says you can't change or remove correct information on your credit report, even if it's negative. If a listing is wrong, you can ask the credit provider or credit reporting body to fix it for free.
How do I check my credit report?
Credit reporting bodies, such as Equifax and Experian, must give you your consumer credit report for free once every 3 months. They may hold different information, so it's worth checking each one.
Last reviewed by Nabita, mortgage broker, MoneyGenie Finance.
Official sources
The rules and figures on this page were checked against the official sources above on the review date. Government rules and lender policies change, so check your own situation with us or the relevant authority before acting.