The Credit Busters guide

How to remove a default
from your credit file

A default can block you from a loan, a card, a phone plan or a rental for five years. The good news: if a default was listed incorrectly or in breach of the rules, it can be removed. This Credit Busters guide explains when a default can legally be listed, how long it lasts, the grounds to challenge one, and how Credit Busters removes defaults on a No Win, No Fee basis.

What a default actually is

A default is a black mark a credit provider places on your credit file when a debt of $150 or more is left unpaid for 60 days or more. Lenders see it the moment they pull your file, and it is one of the main reasons good people get knocked back for finance. A single default can sit there for five years, quietly costing you approvals the whole time.

When a default can legally be listed

A credit provider cannot just list a default whenever it likes. By the rules, all of the following must be true first:

• 60 days overdue. The payment must be at least 60 days late.
• $150 or more. The overdue amount must be $150 or more.
• Written notice. The provider must have sent you written notice requesting payment.
• Time to act. At least 14 days must have passed after that notice before the default is listed.

If any one of those steps was skipped, done wrong, or sent to the wrong address, the default may have been listed in breach of the rules, and that is one of the most common grounds for removal.

How long a default stays on your file

A default stays for five years from the date it was listed, whether or not you pay it. Paying it does not wipe it and does not reset the clock. For reference, credit enquiries also stay five years, repayment history information stays two years, and serious credit infringements can stay seven years. The only way a default leaves early is if it is removed because it should not have been listed the way it was.

When a default can be removed

A default may be able to be removed when, for example:

• the required notices were never given, or were sent incorrectly;
• the default was listed too early, or the amount is wrong;
• the debt was in dispute when it was listed;
• the default relates to identity theft or fraud;
• the listing is out of date, duplicated, or simply not yours.

Credit Busters does not take on every file. Because we work No Win, No Fee, we only accept the defaults we genuinely believe we can remove, and we tell you honestly if we do not think we can help. See if Credit Busters can help, or read the full No Win, No Fee credit repair guide.

Does paying the default remove it?

No. This catches a lot of people out. Paying a default changes its status to “paid” but the listing itself still sits on your file for the full five years. If anything, paying it can make a provider less willing to discuss removal afterwards. Before you pay, it is worth checking whether the default should have been listed at all.

How Credit Busters removes defaults

The whole Credit Busters process is online and built to be simple:

• Free check. Tell Credit Busters about the default. It takes about two minutes, with no cost and no obligation.
• We assess. Credit Busters reviews the listing against the rules and tells you straight whether we believe it can be removed.
• We get to work. If Credit Busters takes it on, you authorise a success-fee hold and we do the work.
• Pay on success. The success fee only applies if the default is actually removed. Don’t win, don’t pay.

Credit Busters operates under Australian Credit Licence 564856. Be wary of anyone promising guaranteed removals or charging large upfront fees.

Frequently asked questions