Black Marks on Your Credit File Australia: How to Remove Them (2026)

Quick Answer: "Black marks" on your Australian credit file refer to negative listings including defaults, court judgements, serious credit infringements, and excess credit enquiries. Most remain for 5 years (7 years for serious infringements and some bankruptcy matters) under the Privacy Act 1988. Defaults and court judgements that were listed in breach of the Credit Reporting Code — due to failures in the required pre-listing notice process, incorrect amounts, or listing during active disputes — can be removed before the 5-year period ends. Score improvements of 100–300+ points are achievable when multiple entries are successfully removed.

"Black marks" is the term most Australians use for the negative entries dragging down their credit score. They show up on your credit file, they don't budge for years, and they cause rejection after rejection when you apply for finance, rental properties, or even phone plans.

But not all black marks have to stay for 5 years. Understanding which ones are challengeable — and how — is the key to getting your financial life back on track faster than most people expect.

What Are "Black Marks" on an Australian Credit File?

The most common black marks affecting Australians are defaults and excessive enquiries. Defaults from telcos and utilities — Telstra, Optus, AGL, Origin — are particularly prevalent because of the high volume of automated listings and frequent procedural errors.

Which Black Marks Can Be Removed Early?

Removable (if listed in breach of the law):

• Defaults — when Section 21D notice was not properly issued, amount was wrong, or listing occurred during a dispute
• Court judgements — when the judgement was obtained based on incorrect information or was served to the wrong address
• Enquiries — when made without proper consent or as duplicates

Not removable early (if accurately and lawfully listed):

• Accurate defaults that were properly listed
• Bankruptcy entries within their retention period
• Part IX Debt Agreement entries within their retention period
• Serious credit infringement entries (7 years)

The critical distinction: removability depends on whether the entry was listed correctly under the law — not on whether you think it's fair, or whether you've now paid the debt.

The Most Common Reasons Black Marks Are Removable

Section 21D notice failure (most common) Before listing a default, the credit provider must send you a written notice to your current known address, stating the amount owed and giving you at least 30 days to respond. If this notice:

• Was never sent
• Was sent to an old address
• Had the wrong amount
• Gave fewer than 30 days to respond

— the subsequent default listing is unlawful under the Privacy Act 1988 and must be removed.

Listing during an active dispute A default cannot be listed while you have a genuine, unresolved dispute with the creditor — whether directly with them or through an external body like AFCA or the TIO. Listing during a live dispute is a breach of the Credit Reporting Code.

Incorrect information Any inaccuracy in a credit listing — wrong amount, wrong date, wrong creditor — makes the entry challengeable. The bureau and creditor are obligated to correct or remove inaccurate data.

How to Remove Black Marks: Step by Step

1. Get all three credit reports — Equifax, Experian, Illion
2. List every negative entry with: creditor, amount, listing date, entry type
3. For each default: formally request the original Section 21D notice from the creditor
4. Review each notice for compliance — notice sent to current address? Correct amount? Full 30 days given?
5. For each breach identified: lodge a formal written dispute with the creditor citing the specific breach
6. Notify the relevant credit bureau in writing, requesting a dispute notation on your file
7. Follow up in writing every 14 days — keep all records
8. If the creditor doesn't resolve: escalate to AFCA (financial firms), TIO (telcos), or the Privacy Commissioner
9. Confirm removal in writing and re-pull your credit report to verify the score change

Real Case Study: Chloe, Townsville — Four Black Marks to Zero in 89 Days

Chloe was a 32-year-old teacher who'd had a rough 2022 — a relationship breakdown, a move, and several bills that fell through the cracks. By the time she contacted Australian Credit Solutions in early 2026, her Equifax score sat at 387. She had four negative entries: an Optus default ($490), a Dodo internet default ($215), an Ergon Energy default ($680), and a court judgement from a credit card provider for $2,100.

We reviewed all four. The Optus default — listed 28 days after the Section 21D notice, not 30 — had a timing breach. The Dodo listing had been made while Chloe had an active complaint with the TIO. The Ergon listing showed an amount of $680 when Chloe's records showed the arrears at time of listing were $410 — an incorrect amount. The court judgement had been served to an address Chloe had moved from 6 months prior, and she'd had no opportunity to respond.

All four were disputed simultaneously with separate grounds. By day 37, the Dodo and Optus defaults were removed. By day 61, the Ergon listing was corrected and removed. The court judgement — the most complex matter — resolved at day 89 following formal legal correspondence from our team.

Chloe's Equifax score moved from 387 to 741 — a 354-point improvement over 89 days. She applied for a home loan within weeks. Approved at 6.24%.

She only paid when we succeeded.

Get a free assessment from Australian Credit Solutions →

Frequently Asked Questions

Can you remove black marks from your credit file in Australia? Yes — if the black mark was listed in breach of the Privacy Act 1988 or Credit Reporting Code. Common grounds include failure to issue a valid Section 21D pre-listing notice, listing an incorrect amount, or listing during an active dispute. Accurate and lawfully listed entries remain for their full retention period. A free assessment identifies which entries on your file have genuine removal grounds.

How long do black marks stay on your credit file in Australia? Most defaults and court judgements remain for 5 years from the listing date. Serious credit infringements stay for 7 years. Bankruptcy entries stay for at least 5 years from discharge. Repayment history information under CCR rolls over 2 years. These periods run from listing date — not from when the debt was originally incurred or when it was paid.

Does paying off a debt remove black marks from your credit file? No. Paying a default changes its status from "unpaid" to "paid default" but does not remove it from your credit file. The listing remains for 5 years from the original listing date regardless of payment. Removal requires a successful dispute based on legal grounds under the Credit Reporting Code.

What is the fastest way to remove black marks from an Australian credit file? The fastest removals — typically 14–30 days — occur when the breach is clear and the creditor acknowledges it quickly. This most commonly occurs with telco and utility defaults where the Section 21D notice failure is obvious. Complex matters — bank defaults, court judgements — take 45–120 days. Professional legal representation consistently produces faster outcomes than DIY disputes.

Can black marks affect rental applications and employment? Yes. Landlords and property managers can request credit checks, and defaults or court judgements on your file can lead to rental application rejection. Some employers — particularly in finance, government, and security roles — also conduct credit checks as part of pre-employment screening. Removing negative entries improves outcomes in both contexts.

Find Out Which Black Marks Can Go

A free assessment identifies every negative entry on your file and tells you honestly which ones have grounds for early removal.

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Related Reading:

• Default removal services Australia
• Court judgement removal
• How to remove a default from your credit file

Australian Credit Solutions Pty Ltd holds Australian Credit Licence ACL 532003. Credit repair services are subject to individual assessment. Results may vary. This article provides general information only and does not constitute legal or financial advice.