Many people don’t realise just how much lenders rely on credit reports when assessing your home loan application. So whether you're planning to buy your first home or refinance an existing loan, having a good credit history is essential.
How to improve and repair your credit score
What is a credit report?
Your credit report (also known as a credit file) is a summary of your borrowing history. It shows details like:- Your current and past loans or credit cards
- Any late payments or defaults
- Applications for finance
- The total amount of debt you owe
Lenders use this report to assess how risky it is to lend to you. If your report shows a strong repayment history, you’re more likely to be approved. But if it includes defaults, late payments or even too many finance applications in a short time, it could hold you back.
How to improve your credit report
Here are some smart, simple ways to keep your credit report in good shape:
- Keep your contact details up to date — This helps you receive all bills and notices — avoiding missed payments and defaults.
- Pay your bills on time — If a bill over $150 remains unpaid for more than 60 days, it can be listed as a default, even if it’s a phone or utility bill.
Tip: Set up direct debits to automate payments.
- Limit finance applications — Every loan, credit card, or "buy now pay later" application leaves a mark. Too many in a short time can raise red flags. Using a mortgage broker can help reduce the number of enquiries and keep your credit report cleaner.
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Did you know: Our preferred brokers can provide a free borrowing snapshot without the need to complete a full finance application upfront. It’s a stress-free way to understand your borrowing power first — and apply for finance later, when you're ready. Get qualified to buy a home |
Can you remove a credit default?
A default stays on your credit file for five years, but there are steps you can take if you believe it was listed in error or want to attempt removal after repayment:
- Step 1: Pay the outstanding amount — If the bill is still unpaid, reach out to the provider or collection agency and settle it.
- Step 2: Request removal — Once paid, contact the provider (ask for a supervisor) and request for the default to be removed. If you're not satisfied with the outcome, you may contact the Australian Financial Complaints Authority (AFCA) for an independent review.
- Step 3: Lodge a correction — Equifax offers a free Personal Corrections service that can investigate any inaccuracies on your credit report.
- Optional: Use a credit repair service — Services like Credit Clean Australia can help, but they may charge fees — so weigh up the costs.
^ Note: There’s no guarantee the default will be removed, but many people have improved their report by following these steps.
How to get your free credit report
You can access your credit report once a year for free through Equifax, one of Australia's leading credit reporting agencies.
Visit: www.equifax.com.au
Knowing what’s on your file is the first step in taking control of your financial future — especially if you're planning to buy a home.
Ready to buy a home?
Your credit report is just one part of your home loan journey. To find out where you stand and what options are available, check out our free New Home Pre-Qualifier — it only takes a few minutes.
Want to know more? Get your hands on our free info pack!