Can Bad Credit Be Fixed in Australia? (Honest Answer, 2026)

Quick Answer: Yes — bad credit can be fixed in Australia, but how it's fixed depends on the cause. Defaults, court judgements, and enquiries that were listed in breach of the Privacy Act 1988 can be legally removed within 30–90 days through professional credit repair — producing immediate, measurable score improvements. Negative entries listed lawfully but inaccurately can be corrected through dispute processes. Legitimately listed entries that are correct cannot be removed before their retention period expires — anyone claiming otherwise is not operating honestly. Australian Credit Solutions (ASIC ACL 532003) has a 98% success rate on accepted cases, because we only accept cases we can win. No Win No Fee.

"Can bad credit be fixed?" is the most important question people ask — and the most honest answer requires a distinction that most services won't make clearly.

Three Types of Bad Credit — Three Different Outcomes

Type 1: Unlawfully Listed Entries → Can Be Removed Now

This is the most common situation for ACS clients. Defaults, court judgements, and enquiries that were listed in breach of the Privacy Act 1988 or the Credit Reporting Code can be formally disputed and removed — regardless of whether the debt was real.

The most common breaches:

• Section 21D notice not properly served (wrong address, email only, insufficient notice period)
• Incorrect amount listed
• Listed during an active dispute
• Statute-barred debt (older than 6 years, no longer legally enforceable in most states)
• Identity fraud — you didn't open the account
• Duplicate listing
• Expired retention period

Timeline for removal: 30–90 days. Some cases resolve in 2–3 weeks. Score improvement: 80–200+ points per removal. Cost: No Win No Fee — you pay the success component only if the entry is removed.

Type 2: Factually Incorrect Entries → Can Be Corrected

If an entry on your credit file is factually wrong — wrong amount, wrong date, wrong creditor name, account that isn't yours — you can dispute it directly with the bureau. The bureau must correct factual errors within 30 days of receiving a dispute.

This is different from Type 1. You don't need a professional service to correct a factual error — you can do it yourself through the bureau's dispute process.

Type 3: Correctly Listed Entries → Time Is the Only Fix

If a default, court judgement, or enquiry was listed correctly — the right amount, the right process, a genuine debt — it cannot be removed before its retention period:

• Default: 5 years
• Court judgement: 5 years
• Enquiry: 5 years
• Serious credit infringement: 7 years
• Bankruptcy: 5 from discharge or 7 from commencement

Anyone telling you they can remove accurately and lawfully listed entries is not telling the truth. No legitimate ASIC-licensed credit repair company can or does this.

What you can do: Build positive Comprehensive Credit Reporting history on top of the negative entries, so newer positive behaviour progressively improves your score position even while old entries remain.

How to Know Which Type of Bad Credit You Have

The only way to know is to pull your credit reports and have them reviewed by someone who knows the law.

Self-assessment starting point:

1. Get free reports from equifax.com.au, experian.com.au, creditreport.com.au
2. For each default, check: did you receive a written warning letter before it was listed? Was it at your current address at the time?
3. If the answer to either question is no — you potentially have Type 1 (unlawfully listed)

Professional assessment: Australian Credit Solutions offers a free credit file assessment. We review your reports, identify every potentially removable entry, and give you an honest assessment of what we can and can't achieve — before you pay anything.

We only accept cases we've identified genuine grounds for. This is why our success rate is 98% — not because we accept every case, but because we screen carefully and tell people the truth upfront.

What Does "Fixing Bad Credit" Actually Look Like?

Here's what a typical ACS case looks like from start to result:

Day 1: Free assessment request submitted. ACS pulls all three credit bureau reports.

Days 2–3: Legal review. Elisa Rothschild BA/LLB reviews each negative entry against the Privacy Act 1988 and Credit Reporting Code requirements. Grounds identified.

Days 3–7: Formal dispute correspondence prepared and lodged with the creditor. Legally constructed, sent under Fogarty Oliver and Rothschild law firm letterhead.

Days 14–45: Most telco and utility defaults resolve in this window. Creditor acknowledges breach and instructs bureau to remove.

Days 30–90: Bank and lender defaults take longer. We follow up, escalate to AFCA if needed.

After removal: Bureau updates your file within 1–5 business days. Score improvement reflected immediately on updated report.

Case Study: Natalie, Perth — "I Thought It Was Permanent"

Natalie, 35, a healthcare worker from Fremantle, had carried a $470 Telstra default for 3 years. She'd been told by a bank that it would "just take time" and there was nothing she could do.

She came to Australian Credit Solutions.

The Telstra Section 21D notice had been sent to an address Natalie had vacated 6 months before Telstra issued it. Her forwarding address had been provided to Australia Post but not updated with Telstra. Using an old address when a forwarding address could have been obtained is a breach of the Credit Reporting Code.

Default removed in 31 days. Score moved from 512 to 671. Natalie was pre-approved for a home loan within 6 weeks. She later told us: "I honestly thought I just had to wait 5 years."

Most people in Natalie's situation don't know they have options. That's the gap this service exists to close.

Get a free assessment from Australian Credit Solutions →

Frequently Asked Questions

Can bad credit be fixed in Australia? Yes — in most cases, bad credit can be improved or fully resolved. Entries listed in breach of the Privacy Act 1988 can be removed within 30–90 days. Factual errors can be corrected through dispute processes. Legitimately listed entries require waiting out their retention period (5–7 years) — but positive credit behaviour during this time progressively improves your score.

Can you fix bad credit fast in Australia? When negative entries were unlawfully listed, yes — removal typically takes 30–90 days through professional credit repair. This is the fastest meaningful score improvement available. Natural score rebuilding through good financial behaviour takes months to years.

Can a credit repair company really fix my bad credit? A legitimate, ASIC-licensed credit repair company with legal qualifications can remove entries that were listed in breach of credit reporting law. Australian Credit Solutions has a 98% success rate on accepted cases because we only accept cases with genuine legal grounds — and we operate on No Win No Fee.

Is fixing bad credit permanent? Yes — when an entry is removed through a successful dispute, it is removed permanently. It won't reappear unless an entirely new listing event occurs. The removal is not a temporary fix; it's a permanent deletion from your credit file.

What is the fastest way to fix bad credit in Australia? Professional credit repair — removing unlawfully listed defaults, enquiries, or court judgements — produces the fastest meaningful score improvement. Single default removal can improve a score by 100–200 points in 30–90 days. No other method produces results at this speed or magnitude.

Your Credit. Your Future. It's Fixable.

Why Australians Trust Australian Credit Solutions

Australian Credit Solutions is lawyer-led, ASIC-licensed (ACL 532003), and has operated since 2014. We've helped over 5,000 Australians remove negative credit file entries and access the finance they deserve. Our 98% success rate on accepted cases reflects a simple approach: we only accept cases where we've identified genuine legal grounds. Every case is managed under the supervision of Principal Solicitor Elisa Rothschild BA/LLB (Monash University) — a lawyer, not a call centre. We operate on No Win No Fee: you pay the success component only when we remove an entry from your file. We've won the Industry Excellence Award three consecutive years — 2022, 2023 and 2024. Our 4.9/5 rating from 976+ verified reviews reflects what real clients experience.

All disputes are conducted under the Privacy Act 1988 and the Credit Reporting Code — the laws that govern your rights and creditors' obligations.

Get My Free Assessment → 📞 0489 265 737 🛡️ ASIC Licensed ACL 532003 | ⭐ 4.9/5 from 976+ Reviews | 🏆 Award Winner 2022–2024

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.