How Long Do Late Payments Stay on Your Credit File? (AU)

Quick Answer — Retention Periods Under the Privacy Act 1988:

• Late payment markers (CCR): 2 years from the date the payment was due
• Formal defaults ($150+, 60+ days overdue): 5 years from the date of listing
• Court judgments: 5 years from judgment date
• Bankruptcies: 5 years from discharge or 2 years from listing date (whichever is later)
• Debt agreements (Part IX): 5 years from listing
• Serious credit infringements: 7 years from listing
• Credit enquiries: 5 years from access date

If any entry on your file has reached its retention limit and hasn't been removed — or was listed incorrectly in the first place — Australian Credit Solutions can dispute it under the Privacy Act 1988. 98% success rate. No Win No Fee. ASIC ACL 532003. Industry Excellence Award 2022, 2023 & 2024. 4.9/5 from 976+ reviews. 5,000+ Australians helped since 2014.

The most common confusion in credit file literacy is mixing up "late payment markers" and "formal defaults." They're different entries with different retention periods, different score impacts, and different removal pathways.

Late Payment Markers vs Formal Defaults — The Critical Distinction

Many people think they have a "default" when they actually have a late payment marker — and vice versa. Pull your credit file and look at which section the entry appears in. Late payment markers appear under repayment history. Formal defaults appear as separate negative listings.

The Full Retention Period Table (Privacy Act 1988)

Bureaus are legally required to remove entries when their retention period expires. If they don't, you can demand removal — it's your right under the Privacy Act 1988. For professional assistance, see our repayment history removal service.

The 2-Year Rolling Window Explained

Under Comprehensive Credit Reporting, late payment markers work on a rolling 2-year basis. Today (February 2026), your repayment history file shows every payment status from February 2024 onwards. For more detail, see our guide on comprehensive credit reporting (ccr) explained: australia 2026.

This means:

• A late payment from February 2024 drops off this month (February 2026)
• A late payment from January 2024 already dropped off last month
• A new late payment today stays until February 2028

Each month, the oldest month's data drops off and the most recent month is added. This creates natural recovery for people who've stabilised their finances — the file progressively gets cleaner as the problem period ages out of the 2-year window.

The implication: If you had a difficult period in 2022–2023 with missed payments, and you've been consistently paying on time since, your file has been actively recovering on its own since 2024. By late 2025, those 2022 markers have fully dropped off.

Does Paying a Late Account Remove the Record?

This is the most common misconception we encounter.

Late payment markers: Paying the overdue amount does not remove the late payment marker from your CCR history. The entry updates to show the account is current, but the record of the late payment remains for the full 2-year retention period. It simply shows as "late — now paid" rather than "late — still overdue."

Formal defaults: Paying a default does not remove the default from your credit file. The status updates from "outstanding" to "paid" or "settled," but the default listing remains for the full 5-year retention period from the original listing date. A paid default is still a default — lenders can still see it, and it still suppresses your score.

The only way to remove a credit file entry before its natural expiry is through a successful dispute under the Privacy Act 1988 — demonstrating that the entry was listed incorrectly or in breach of credit reporting law.

Case Study: Diane, Perth — Default Removal, 4 Years Before Expiry

Diane, 44, a school principal from Subiaco, had a Telstra default on her Equifax file from mid-2022 — listed at $340. She'd disputed the underlying bill with Telstra in 2022 and believed she'd resolved it, but the default was listed anyway. The retention period meant it wouldn't naturally expire until mid-2027. Diane needed a home loan refinance in 2025 — two years before the default would drop off.

Australian Credit Solutions reviewed the file. The Section 21D pre-listing notice from Telstra had been sent during an active billing dispute — a direct breach of credit reporting obligations under the Privacy Act 1988. The dispute was lodged. Telstra removed the default within 38 days of our formal correspondence. Score improved from 523 to 667. Refinance approved at standard rates.

Diane's default was removed 4 years before it would have naturally expired — saving her years of higher interest rates and limited lending options.

Diane paid nothing until we succeeded.

Get a free assessment from Australian Credit Solutions →

Common Grounds for Removing Entries Before Expiry

If you don't want to wait for natural expiry, these are the legal grounds most commonly used to remove entries early:

For defaults:

• Section 21D notice was sent to old/wrong address
• Section 21D notice was sent during an active dispute
• The default amount was incorrect
• The account was not in your name (identity fraud)
• The debt is statute-barred
• The default was a duplicate listing

For late payment markers:

• The payment was actually made on time and incorrectly recorded
• The lender's system didn't process the payment correctly
• The account was in dispute at the time of the marker
• The entry is on the wrong account

For enquiries:

• You didn't authorise the credit check
• The enquiry is a duplicate
• It's from a company you've never dealt with (identity fraud)

Frequently Asked Questions

How long does a late payment stay on your credit file in Australia? A late payment marker stays on your credit file for 2 years from the date the payment was due under Comprehensive Credit Reporting rules. This is a rolling window — each month the oldest entry drops off. A formal default (debt $150+ unpaid 60+ days) is different and stays for 5 years from the listing date under the Privacy Act 1988.

How long does a default stay on your credit file in Australia? A formal default stays on your credit file for 5 years from the date it was listed, under the Privacy Act 1988. Paying the underlying debt does not remove the listing — it only updates the status from outstanding to paid. The only way to remove a default before 5 years is a successful dispute demonstrating it was listed in breach of credit reporting law.

Does paying a late payment remove it from your credit file? No — paying a late or overdue account does not remove the late payment record from your credit file. The CCR repayment history entry remains visible for the full 2-year retention period. Paying brings the account current and stops further late markers from accumulating, but it doesn't erase historical records.

What is the difference between a late payment and a default in Australia? A late payment is a CCR repayment history marker — recorded automatically when a payment is 14+ days overdue — and stays for 2 years. A default is a formal negative listing made by a lender when a debt of $150+ goes 60+ days unpaid, requires a Section 21D written notice before listing, and stays for 5 years. Both affect your score but through different mechanisms.

Can late payments be removed from a credit file in Australia? Yes — if a late payment marker was recorded incorrectly (payment was actually on time, system error, account was in dispute), it can be disputed and removed under the Privacy Act 1988. Correctly recorded late payment markers cannot be removed before the 2-year retention period expires, but natural expiry is relatively quick compared to 5-year defaults.

What happens after 5 years on a credit file in Australia? Default listings, court judgments, and credit enquiries that have reached their 5-year retention limit must be removed from your credit file. The bureau should remove them automatically, but it's worth checking. If any entry appears to have passed its retention period and hasn't been removed, contact the bureau directly and request removal — this is your legal right.

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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.

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