Fix Credit Score Australia: What Actually Works in 2026

Quick Answer: To fix your credit score in Australia, the fastest method is removing inaccurate or unlawfully listed negative entries — defaults, court judgements, or unauthorised enquiries — under the Privacy Act 1988. Score improvements of 100–300+ points within 30–90 days are achievable when strong grounds exist. For accurate entries, the path is consistent on-time repayments over 12–24 months under Comprehensive Credit Reporting. A free assessment from an ASIC-licensed credit repair firm identifies which approach applies to your file.

Your credit score is sitting where it is for a reason. The question is whether that reason is accurate — or whether something unlawful is dragging your score down unfairly.

This distinction matters more than most people realise. If your score is low because of legitimate, accurately listed negative entries, fixing it requires time and consistent financial behaviour. But if your score is low because a default was listed without proper process — which happens constantly in Australia — the fix can come in weeks, not years.

This guide covers both paths, and how to figure out which one applies to you.

What Controls Your Credit Score in Australia

Your Equifax score (0–1,200) reflects every piece of data on your credit file. Defaults and court judgements cause the biggest drops — a single default from a $400 Optus bill can push a score from Good (700+) down to Average (500s). Credit enquiries, repayment history under Comprehensive Credit Reporting (CCR), and credit utilisation all play supporting roles.

The key retention periods under the Privacy Act 1988:

Paying a default does not remove it. It changes the status to "paid default" — still visible, still damaging, still sitting there for the full 5 years. The only way to remove a default before 5 years is to successfully dispute it on legal grounds.

The Two Paths to Fixing Your Credit Score

Path 1 — Remove unlawful or inaccurate entries (fastest)

Under the Credit Reporting Code, every default must be listed following strict procedural rules. The creditor must issue a written Section 21D notice to your current known address, stating the correct amount, giving you 30 full days to respond. If any part of that process failed — wrong address, wrong amount, notice never sent, listing during an active dispute — the entry is unlawful and removable.

Telco and utility defaults (Telstra, Optus, AGL, Origin) fail this process more often than most people expect. Processing volume creates compliance shortcuts. A single successful removal can shift your Equifax score 80–200 points.

Path 2 — Build positive history over time (slower but always available)

Since Australia's CCR regime, every on-time repayment generates positive data visible to lenders. 24 months of consistent payments across multiple accounts meaningfully improves your score. Reducing credit card balances below 30% of the limit, avoiding new applications for 6 months, and not closing old accounts all compound the improvement.

Path 2 takes 12–24 months to produce significant movement. Path 1 — where viable — takes 30–90 days.

What Fixing Your Credit Score Is Worth

Fixing your credit score isn't just about getting approved. The difference between a Good score and an Average score on a $500,000 home loan is roughly $268,000 in extra interest over 30 years. On a car loan, the difference can be $8,000–$15,000. Every point matters.

Real Case Study: Harrison, Gold Coast — Score 441 to 698, Car Loan at 7.9%

Harrison, 29, worked in hospitality and had been turned down for a car loan twice. His Equifax score sat at 441 — well below the threshold for any mainstream lender. He had two defaults: a $310 Dodo internet account and a $720 Latitude Financial credit card.

He contacted Australian Credit Solutions after a friend recommended us. We reviewed both listings. The Dodo default had been issued to an email address Harrison had provided as a secondary contact only — Dodo's own CRM showed his primary contact was a mobile number, and no SMS or letter notice had been sent. The Latitude listing had been made exactly 29 days after their notice was issued — one day short of the mandatory 30-day period under the Credit Reporting Code.

Both grounds were clear. We lodged disputes the same week. The Dodo default was removed in 18 days. The Latitude default took 41 days.

Result: Harrison's Equifax score moved from 441 to 698. He applied for a $28,000 car loan through a mainstream lender. Approved at 7.9%. His previous specialist quote had been 21.4% — a saving of approximately $13,600 over the 5-year term.

He only paid when we succeeded.

Get a free assessment from Australian Credit Solutions →

How to Fix Your Credit Score: Step by Step

1. Get all three credit reports — Equifax (equifax.com.au), Experian (experian.com.au), Illion (creditreport.com.au). Free annually from each.
2. List every negative entry — creditor, amount, date listed, current status
3. Request the Section 21D notice for each default — write to the creditor directly
4. Check for breaches — was the notice sent to your current address? Correct amount? Full 30 days?
5. If breach found — lodge a formal written dispute with the creditor citing the specific violation
6. Notify the bureau — send a copy of your dispute and request a dispute notation
7. Escalate if needed — AFCA for financial firms, TIO for telcos, if the creditor is unresponsive
8. In parallel — set up direct debits on all accounts, keep card balances below 30%, no new applications for 6 months

What Won't Fix Your Credit Score

Paying a default doesn't remove it. The listing stays for 5 years from the original date regardless of payment status.

Waiting it out works eventually — 5 years is the maximum — but costs you years of higher interest rates, rejected applications, and financial stress in the meantime.

Doing nothing and hoping is the most expensive strategy. A score of 450 doesn't get better on its own.

Unlicensed "credit repair" companies that charge upfront fees before doing any work, or promise to remove any listing regardless of grounds, are not legitimate. Verify any firm's ASIC licence at asic.gov.au before paying anything.

Frequently Asked Questions

How long does it take to fix a credit score in Australia? It depends on the cause. If your score is low due to unlawfully listed defaults, removal takes 30–90 days and score improvements of 100–200+ points are typical. If the entries are accurate, building positive repayment history under CCR takes 12–24 months of consistent on-time payments to produce meaningful movement. A free assessment identifies which applies to your file.

Can you fix a credit score permanently in Australia? Yes — once a default is removed, it's gone from your file. The improvement is permanent for that entry. Going forward, maintaining on-time repayments across all accounts prevents new negative entries from forming. The goal is a permanently clean file, which is achievable for most people within 1–2 years of active management.

How much does it cost to fix a credit score in Australia? A legitimate credit repair firm operates on No Win No Fee — you only pay if a listing is successfully removed. There's typically a small administration fee for the assessment and file review. Never pay a large upfront fee before any work begins. Self-help steps — getting your reports, lodging your own disputes, building repayment history — are free.

Does fixing your credit score affect your ability to borrow money? Improving your credit score increases your options and lowers your borrowing costs. Lenders check your score to assess risk and price their loans accordingly. A higher score means lower rates, higher approval probability, and access to better products. There's no downside to having a higher credit score.

Can I fix my credit score if I have multiple defaults? Yes — each default is assessed independently. If multiple defaults were listed in breach of the Credit Reporting Code, each can be challenged separately. ACS regularly removes 2–4 defaults simultaneously for clients, with combined score improvements of 200–400 points in cases where multiple breaches exist.

What's the quickest way to fix a bad credit score in Australia? The fastest path is removing an inaccurate or unlawfully listed default. Score improvements of 100–200 points within 30–60 days are achievable when the breach is clear and the creditor responds quickly. This is dramatically faster than any self-help strategy. A free assessment identifies whether this path is available for your specific situation.

Take the First Step

If your credit score is holding you back, the most useful thing you can do right now is find out exactly what's on your file and whether any of it is removable. Our free assessment does exactly that — no obligation, no pressure.

Australian Credit Solutions — ASIC-licensed ACL 532003, lawyer-led by Principal Solicitor Elisa Rothschild BA/LLB, No Win No Fee, 98% success rate on accepted cases, over 5,000 Australians helped since 2014.

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: Default removal services → | Improve your credit score → | Credit repair Australia →