Short answer
Five years. A default stays on your credit report for 5 years, even if you pay it. Once it's paid, the credit provider updates the listing to show the payment. Missed or late repayments stay for 2 years, credit enquiries for 5 years and serious credit infringements for 7 years. Only incorrect listings can be removed early, and fixing them is free.
What counts as a default?
A credit provider can only list a default on your credit report if all of these apply:
- the overdue amount is $150 or more, and at least 60 days overdue
- they sent a notice to your last known address asking you to pay
- at least 30 days later, they sent a second notice warning they would report it
- they waited at least 14 days after the second notice (and list it no more than 3 months after it)
If any of these didn't happen, the default may be listed incorrectly, and you can ask for it to be corrected.
How long does each item stay?
| Information | How long it stays |
|---|---|
| Defaults (paid or unpaid) | 5 years |
| Repayment history (missed or late payments) | 2 years |
| Credit enquiries | 5 years |
| Court judgments | 5 years |
| Serious credit infringements | 7 years |
| Financial hardship information | 1 year |
As at 27 October 2026. Source: OAIC.
A payment counts as missed on your repayment history if it's made more than 14 days after the due date.
What do lenders look at?
- Paid or unpaid: paying a default doesn't remove it, but the listing is updated to show it's paid
- How long ago: an older default generally matters less than a recent one
- How much, and how many: a single small default is different from several large ones
- What happened since: on-time repayments and steady savings since the default
Lender policies on defaults vary widely. Some lenders specialise in borrowers with past credit problems, usually at higher interest rates or fees, so it's worth comparing before you apply.
How to check and fix your credit report
- Get your reports. Credit reporting bodies, such as Equifax and Experian, must give you a free copy once every 3 months. They may hold different information, so check each one.
- Check every default against the rules above: the amount, the dates and the notices.
- Ask for errors to be fixed by the credit provider or the credit reporting body. You have the right to get errors corrected for free.
- Escalate if needed. If you can't agree, the Australian Financial Complaints Authority (AFCA) offers free, independent dispute resolution. A financial counsellor can also help.
Be wary of credit repair companies: they can't remove correct listings, and you don't need to pay anyone to fix an error.
How MoneyGenie helps
- Goes through your credit report with you to see what lenders will see, before you apply.
- Finds lenders whose policies fit your situation, such as paid or older defaults.
- Points you to the right place to get a wrong listing corrected (correcting errors is free).
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 enquiryLast reviewed by Nabita, mortgage broker, MoneyGenie Finance.
Official sources
Frequently asked questions
Does paying a default remove it from my credit file?
No. The default stays for 5 years, but the credit provider updates it to show the payment was made. A paid default generally looks better to lenders than an unpaid one.
Can a default be removed early?
Only if it's wrong, for example if the notices weren't sent or the amount was under $150. Moneysmart says you can't change or remove correct information on your credit report.
How do I check if I have a default?
Ask the credit reporting bodies, such as Equifax and Experian, for your credit report. They must give you a free copy once every 3 months.
Can I get a home loan with a default?
Sometimes. It depends on how much, how long ago, whether it's paid and how you've managed since. Some lenders consider applicants with defaults, often with conditions such as a larger deposit or a higher rate.
The rules and figures in this guide 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.