If your credit isn’t perfect — or you’ve had a default in the past — you might be wondering: “Can I still buy a home?”
The short answer: Yes, it’s possible — but your credit score plays a big part in how smooth (or challenging) the process will be.
Here’s the simple breakdown.
1. Why good credit matters
Your credit score tells lenders how reliably you’ve handled money in the past.
A good score means:
- You’re more likely to get approved
- You can access better interest rates
- You have more lender options
- The process is much easier
A bad credit score doesn’t automatically mean “no,” but the better your credit looks, the more confidence the bank has in lending to you.
2. How to check your credit score (free and easy)
Checking your credit score is quick, free, and something every Australian can do. The easiest way is through Equifax, which gives you a full credit report showing:
- Your credit score
- Any defaults
- Missed or late payments
- Old or active accounts
- Hard enquiries
It doesn’t hurt your score to check it — and it’s one of the smartest first steps before applying for a home loan.
3. How to improve your credit before buying
If your score isn’t great, don’t stress — lots of people improve theirs quickly with a few simple steps:
- Pay bills on time (set reminders or automate them)
- Reduce credit card limits or pay them off
- Avoid buy-now-pay-later services
- Stop applying for new loans or credit
- Keep your accounts stable and consistent
Even 3–6 months of clean financial behaviour can make a big difference.
If you’re unsure what’s hurting your score, we can review your credit report and explain it in plain English.
4. Can you remove a default? (Sometimes, yes)
Defaults are one of the biggest things that hurt your credit score — but they can sometimes be fixed or removed.
You may be able to remove a default if:
- The default was listed incorrectly
- The provider didn’t follow the correct legal process
- You never received notices
- You pay off the debt and the creditor agrees to remove it
- It was an error or duplicate listing
Each case is different, but many clients have successfully had defaults updated or removed with the right steps.
Need help with your credit?
If you’re unsure where to start, here are two places you could try:
- Equifax Personal Corrections Service — A free service for fixing incorrect listings directly with the credit bureau
- Credit Clean Australia — A paid service that helps review, challenge, or remove incorrect defaults
These services can help clean up errors and improve your score faster — especially if something has been listed incorrectly.
