Credit repair: How to fix and improve your credit report and credit score

Having a good credit score is essential for getting loans, financing, or even opening accounts for some basic services. In Australia, your credit history is stored by specialised agencies and can be accessed by financial institutions when you apply for any type of credit.

However, mistakes can happen — and you have the right to correct them free of charge.

This comprehensive guide covers the key information you need to know about repairing and improving your credit, from how to identify and correct errors in your report to the best practices for boosting your score over time. Shall we get started?

What is a credit report?

First of all, let’s briefly revisit what a credit report is — often referred to as the document that contains your credit score. A credit report is a document that compiles your financial history in relation to credit products such as credit cards, loans, and utility accounts. It includes:

• Personal details (name, date of birth, address).
• Credit score.
• Payment history for the past 24 months.
• Credit applications from recent years, usually between two and five.
• Notes regarding financial hardship.
• Defaults and court judgements related to debts.

In Australia, the three main credit reporting bodies are Equifax, Experian, and illion. You can request a free copy of your credit report every three months from each of these agencies.

Want to know more about the concepts and definitions related to your credit report? Take a look here to learn more about your score: Understand how your credit score and report work.

What could be wrong in your credit report?

Even though it’s an official document, mistakes in your credit report are more common than you might think. The good news is that you don’t need to pay anyone to fix them — you can do it yourself, free of charge.

Usually, the most common errors include:

1. Incorrect personal information

• Outdated name, date of birth, or address.
• Duplicated or inconsistent data.

2. Duplicated or incorrect debts

• The same debt listed twice.
• Incorrect amount assigned to a debt.

3. Errors from financial institutions

• Incorrect record of late payments.
• Failure to notify you about outstanding debts.
• Listing of a default while you were disputing the debt.
• Missing information about payment agreements.
• Accounts opened in error, including those resulting from identity theft.

How to fix your credit report

When reviewing your credit report, if you notice any inconsistencies, follow these steps to correct them as quickly as possible — especially if you’re planning to apply for credit:

Step 1: Identify the error

Before anything else, request your credit report and carefully review all the information. Compare it with bank statements, loan contracts, and utility bills to identify any discrepancies.

Step 2: Contact the responsible party

If the error comes from the credit reporting agency (Equifax, Experian, or illion), get in touch with the agency and request a correction. These agencies are legally required to investigate and fix incorrect information.

If the error comes from a credit provider — such as a bank, retailer, or utility service — the process is similar. Request the correction directly with the institution. If they agree that the information is incorrect, they must notify the credit reporting agency so the information can be removed.

Step 3: Use dispute resolution resources

If you can’t resolve the issue directly with the provider, you can escalate the matter to the Australian Financial Complaints Authority (AFCA), which offers a free and independent dispute resolution process.

Pay attention: what you can’t remove

However, certain situations will remain in your credit history and affect your credit score for a period of time. That’s why it’s important to highlight that correct information cannot be removed, even if it’s negative. Examples include:

• Payment delays over 60 days for amounts of $150 or more (remain for 5 years).
• Credit applications made within the last 5 years.
• Full payment history for the past 24 months.

If the information is accurate, even if unfavourable, these records will stay on your report until they naturally expire. However, once paid off, your score can still improve over time, despite the record being present.

Be careful with credit repair companies

There are many advertisements from companies offering to “clean” your name or boost your score. Generally, these promises are misleading — and sometimes even illegal. So stay alert and make sure to check the following before hiring any service:

• Confirm that the company is licensed with ASIC (Australian Securities and Investments Commission).
• Check whether they are a Licensed Credit Provider or a Credit Representative.
• Always prefer dealing directly with the agencies or a free financial counsellor.

How to improve your credit score

In addition to correcting errors, some healthier financial habits can be adopted to improve your credit score over time — helping your report reflect only positive references.

1. Pay loans and debts on time

A history of timely payments is one of the main factors considered. Being punctual shows responsibility and lowers the perceived risk for lenders.

2. Keep your bills up to date

Electricity, phone, and internet bills can also influence your score. Set up direct debits or reminders to avoid delays, and notify your providers if you change address.

3. Avoid applying for too many credits

Each credit application is recorded and can signal financial distress. This may negatively impact your score, even if the credit isn’t approved.

4. Talk to your lender if you’re having difficulties

If you’re experiencing financial hardship, contact your bank or service provider to renegotiate terms or consider a debt consolidation loan. Registering a financial hardship arrangement does not harm your score.

5. Review your report regularly

Check your credit report at least once a year, or whenever you notice suspicious activity. This helps identify fraud, such as debts not taken out by you.

6. Keep only the cards you can manage

Having one or two credit cards and using them responsibly can be beneficial — especially if you regularly pay the full amount on your statement. But avoid having very high limits or multiple cards you don’t use.

7. Reduce your credit limit

Lowering the maximum available limit on your cards helps keep your debts under control and is viewed positively by credit reporting agencies.

When should you check your credit score?

You should check your credit score at strategic moments, such as:

• Before applying for a loan or financing.
• After paying off large debts.
• When you suspect fraud or identity theft.
• Periodically, to monitor your progress.

Additionally, checking your own credit score does not affect your credit report.

Where to check your credit score and report

As previously mentioned, in Australia, there are three main agencies responsible for managing your credit data and compiling it into a report, which in turn impacts your score. See below for the links to access these organisations:

Equifax Australia – www.equifax.com.au 

Equifax is one of the largest credit agencies in the country and provides detailed credit reports for both individuals and businesses. They also offer identity monitoring services and credit alerts, which can help protect against fraud.

Experian Australia – www.experian.com.au

Experian is a global company with a strong presence in Australia. It provides free credit reports and tools to help consumers understand and improve their credit score, along with educational support on personal finance.

illion – www.illion.com.au

illion specialises in the collection and analysis of financial data. The company offers free access to your credit report and credit score, along with regular updates and helpful resources to track changes in your credit profile over time.

Some final advice

Credit repair is a right of every Australian consumer and can be done free of charge, without intermediaries. Keeping control of your credit report and credit score is essential for accessing better financing conditions, lower interest rates, and greater financial security.
In addition, financial education, discipline, and vigilance are your main allies in rebuilding and maintaining a good credit reputation. And remember: free help is available. If needed, speak to a certified financial counsellor.

Another important point is to maintain healthy financial habits to prevent issues from appearing on your report. Follow the tips in this article to help make that process easier for you. One of the most important tips is to always pay your bills, debts, and loans on time — avoiding delays, penalties, and becoming a negative reference in your credit history.