Can You Fix Bad Credit in Australia? The Honest Answer

Quick Answer: Yes — bad credit in Australia can be fixed, though how quickly depends on what caused it. Defaults and enquiries listed in breach of the Privacy Act 1988 or Credit Reporting Code can be removed professionally in 30–90 days. Lawfully listed entries cannot be removed early but do expire after 5 years. And rebuilding through consistent on-time payments, lower utilisation, and fewer applications produces meaningful improvement in 6–24 months. Many people see 100–300 point score gains.

"Can bad credit be fixed?" is really three questions dressed as one. Can you remove the negative entries? Can you build back up while they're still there? And how long does either take?

The answer to all three is yes — with specifics attached. Here's the honest breakdown.

What CAN Be Fixed — And How Fast

What CANNOT Be Fixed Early

Any company that claims it can remove all of these regardless of circumstances is not telling you the truth. Legitimate credit repair only removes entries that were listed unlawfully. That said — a significant proportion of defaults in Australia were listed in breach of the Privacy Act 1988. Most people don't know until they check.

Real Case Study: Tyler, Brisbane — Told It Couldn't Be Fixed. It Could.

Tyler, 32, a graphic designer from Brisbane, had two defaults on his Equifax file and had been told by a bank manager and a mortgage broker that there was nothing to do but wait. He accepted that for 18 months. A colleague who'd used ACS suggested he at least get an assessment.

His file showed: a $520 default from a telco, listed 22 months ago; and a $640 default from an electricity retailer, listed 31 months ago. During the assessment we examined both in detail.

The telco default: no Section 21D pre-listing notice had been issued. Clear Privacy Act 1988 breach.

The electricity default: listed 11 days after the Section 21D notice was sent — not the required 30 days. Another Privacy Act 1988 breach.

Both were challengeable. Both were challenged. Both were removed.

Result: Tyler's Equifax score moved from 412 to 701 in 58 days — a 289-point improvement. Two defaults that he'd been told couldn't be touched turned out to be unlawful listings from day one. He applied for a home loan and was approved at 6.38% p.a. through a mainstream bank. He only paid when we succeeded. Subject to individual assessment; results may vary.

The Two Tracks: Removal and Rebuilding Together

The most effective approach combines both:

Track 1 — Remove everything removable first. A free assessment identifies what can be challenged. Professional removal typically completes in 30–90 days. Score improvements are immediate and significant upon removal.

Track 2 — Rebuild in parallel. Even while removal is being processed, good habits are building positive CCR data. Pay every bill on direct debit. Don't apply for new credit. Keep card utilisation below 30%.

By the time Track 1 completes, Track 2 has already added 1–3 months of positive history. The combined effect accelerates recovery significantly compared to either path alone.

How to Start Fixing Bad Credit in Australia

1. Get all three credit reports — Equifax, Experian, Illion — free, no impact on score
2. Identify every negative entry and note the creditor, amount, and listing date
3. Get a professional assessment — ACS reviews for free and identifies what's challengeable under the Privacy Act 1988 and Credit Reporting Code
4. Challenge what can be challenged — either yourself or through ACS on No Win No Fee
5. Start rebuilding immediately — direct debits, no new applications, low utilisation
6. Monitor monthly — your score updates as positive data accumulates

Frequently Asked Questions

Can bad credit actually be fixed in Australia? Yes — through two mechanisms. First, unlawfully listed defaults and enquiries can be removed under the Privacy Act 1988, often in 30–90 days with immediate score improvements of 100–300 points. Second, consistent on-time payments, reduced applications, and smart credit management rebuild scores over 6–24 months. Lawfully listed entries cannot be removed early — but they do expire and their impact fades over time.

How long does it take to fix bad credit in Australia? For professional removal of unlawful defaults: 30–90 days. For rebuilding without removal: 6–24 months for meaningful improvement. For natural expiry of defaults: up to 5 years. The fastest outcomes come from combining removal (where grounds exist) with active rebuilding — many clients reach the Good band (661+ Equifax) within 3–6 months of a successful removal.

Can credit repair companies fix bad credit in Australia? ASIC-licensed credit repair companies like Australian Credit Solutions can challenge entries listed in breach of the Privacy Act 1988 and Credit Reporting Code. They cannot remove accurate, lawfully listed negative entries. The distinction matters — any company claiming they can remove everything regardless of circumstances is overstating what's legally possible.

Is it worth trying to fix bad credit in Australia? Yes — especially if the goal is loan approval. The rate difference between a bad-credit specialist loan and a mainstream loan can be hundreds of thousands of dollars over a loan term. A 30–90 day wait for credit repair, compared to 3–5 years of extra interest, is almost always worth attempting first.

Can I fix bad credit myself in Australia? Yes. You can lodge disputes directly with credit bureaus and creditors at no cost under the Privacy Act 1988. Professional help is worth considering when grounds are complex, the creditor disputes your challenge, or you have a time-sensitive loan application. The free assessment from ACS helps clarify whether professional involvement is likely to make a difference for your specific situation.

Get a Clear Answer on What's Actually Fixable in Your File

A free assessment from Australian Credit Solutions reviews your file specifically and tells you what can be challenged, what the realistic timeline looks like, and what to expect on the other side.

Australian Credit Solutions is ASIC-licensed (ACL 532003), lawyer-led by Principal Solicitor Elisa Rothschild, and has helped over 5,000 Australians fix what could be fixed since 2014. No Win No Fee. 98% success rate on accepted cases.

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.

Related reading: How to Fix Bad Credit → | Default Removal → | Credit Repair Services →