Credit & Credit Repair Glossary
Plain-language definitions of the Australian credit terms that matter — from defaults and section 21D notices to the Privacy Act, the bureaus and AFCA. Written so you can actually understand what's on your file. General information only, reviewed by our solicitor-led team.
AFCA (Australian Financial Complaints Authority)
The free, independent external dispute resolution scheme for financial and credit complaints in Australia. If a credit provider won't fix a listing you believe is wrong, AFCA can consider the complaint and its decisions are binding on the member firm. See also external dispute resolution. ↑ top
AFSA (Australian Financial Security Authority)
The government agency that administers personal insolvency in Australia, including bankruptcy and debt agreements, and maintains the National Personal Insolvency Index (NPII). ↑ top
annual percentage rate (APR)
The interest rate charged on a loan or credit card, before most fees. Because it excludes fees, it can understate the true cost — the comparison rate is a better guide. ↑ top
ASIC
The Australian Securities and Investments Commission — the regulator for credit and financial services. ASIC issues the Australian credit licence and enforces the law that credit providers and credit-repair firms must follow. ↑ top
Australian credit licence (ACL)
A licence issued by ASIC allowing a business to legally engage in credit activities, including assisting consumers with credit-related matters. Australian Credit Solutions holds ACL 532003. Holding a licence is a baseline standard, not an endorsement. ↑ top
Australian financial services (AFS) licence
A separate ASIC licence covering financial products and financial advice. It is different from an Australian credit licence — a business may hold one, both, or neither depending on what it does. ↑ top
bankruptcy
A formal legal process for a person who cannot pay their debts, administered by AFSA. A bankruptcy is recorded on the National Personal Insolvency Index and on your credit file. On the credit file it generally remains for five years from the date you became bankrupt, or two years from discharge, whichever is later. ↑ top
buy now pay later (BNPL)
Short-term instalment credit (such as Afterpay or Zip). Missed BNPL payments can affect your credit position, and from mid-2025 BNPL is regulated under the consumer credit framework. ↑ top
chargeback
A reversal of a card transaction by your bank, returning funds to your account — typically where goods weren't delivered or a transaction was unauthorised. Unrelated to credit listings. ↑ top
clearout
Recorded when a credit provider says it lost contact with you despite reasonable attempts to reach you. A clearout can turn an overdue debt into a serious credit infringement, which can stay on file longer than a standard default. ↑ top
comparison rate
A single percentage that combines the interest rate with most fees and charges, so you can compare the true cost of loans. Always check the comparison rate, not just the headline APR. ↑ top
comprehensive credit reporting (CCR)
The system under Part IIIA of the Privacy Act 1988 where lenders report both positive and negative information, including up to 24 months of repayment history. Introduced in 2018, it means on-time payments can help your file, not just hurt it. ↑ top
consumer credit insurance (CCI)
Optional insurance sold with a loan or card that may cover repayments if you can't work due to illness, injury or job loss. Often poor value — review the terms carefully. ↑ top
court judgment
A formal court order confirming you owe a debt, obtained after a creditor takes legal action. A judgment can be recorded on your credit file and generally stays for five years. It is more serious to lenders than a default. See court judgement removal. ↑ top
credit enquiry
A record created when you apply for credit and a lender checks your file. A cluster of hard enquiries in a short time can lower your score. Enquiries generally stay for five years. See credit enquiry removal. ↑ top
credit file
The record a credit reporting body holds about your credit history — accounts, repayments, enquiries, defaults and judgments. Lenders read it to decide whether to lend. Also called a credit report. ↑ top
credit provider
A business that lends money or provides credit — banks, finance companies, and in some cases telcos and utilities that can list defaults. ↑ top
credit report
See credit file. You are entitled to a free copy from each bureau, normally every three months or sooner if you've recently been declined credit. ↑ top
credit reporting body (bureau)
An organisation that compiles credit files and sells credit reports. Australia's bureaus are Equifax, Experian and illion; each may hold different information. ↑ top
Credit Reporting Code (CR Code)
The binding code that sits beneath the Privacy Act 1988 and sets the detailed rules credit providers and bureaus must follow when handling credit information. ↑ top
credit score
A number a bureau calculates from your credit file to summarise risk. Scales differ — Equifax runs 0–1,200, Experian and illion 0–1,000 — so your score differs between bureaus. ↑ top
credit utilisation
How much of your available credit limit you're using. Lower utilisation is generally viewed more favourably. ↑ top
creditor
A person or organisation you owe money to. ↑ top
debt agreement (Part IX)
A legally binding arrangement under Part IX of the Bankruptcy Act to repay an agreed portion of your debts over time — a formal alternative to bankruptcy, administered by AFSA and recorded on your file. ↑ top
debt consolidation
Combining several debts into one loan to simplify repayments. It can reduce repayments but may extend the term and total interest. ↑ top
default
A listing a credit provider can record when a debt is at least 60 days overdue, is at least $150, and required notices (including a section 21D notice) have been issued. A default stays on your file for five years from the listing date. See default removal. ↑ top
default fee
A fee a lender may charge for a missed repayment. This is different from a default listing on your credit file. ↑ top
EDR (external dispute resolution)
Free dispute-resolution schemes that handle complaints outside court. AFCA is the relevant scheme for credit and finance. ↑ top
Equifax
Australia's largest credit reporting body, used by most major banks. Its score runs 0–1,200. ↑ top
Experian
An Australian credit reporting body whose score runs 0–1,000, used by a range of lenders and BNPL providers. ↑ top
guarantor
A person who agrees to repay someone else's loan if the borrower can't. A guarantor is legally responsible for the debt. ↑ top
hard enquiry
An enquiry recorded when you formally apply for credit. Hard enquiries are visible to lenders and generally stay on your file for five years, unlike soft checks. ↑ top
hardship variation
A change to your loan terms because of financial hardship — for example more time to pay, or temporarily paused or reduced repayments. You request it from your lender's hardship team. ↑ top
identity theft / fraud
Using someone's personal details to obtain credit. Fraudulent accounts or enquiries created this way can often be challenged and removed. See credit repair after identity theft. ↑ top
illion
An Australian credit reporting body whose score runs 0–1,000, with bands commonly grouped as Good, Great and Excellent. ↑ top
lenders mortgage insurance (LMI)
Insurance that protects the lender (not you) when you borrow with a small deposit, usually above 80% of the property value. The cost is typically passed to the borrower. ↑ top
NCCP Act
The National Consumer Credit Protection Act, which sets out responsible lending obligations and licensing for credit providers and brokers. ↑ top
OAIC
The Office of the Australian Information Commissioner — the regulator that oversees credit reporting privacy under the Privacy Act 1988 and can handle privacy complaints about credit information. ↑ top
paid vs unpaid default
Paying a default changes its status from 'unpaid' to 'paid', which lenders view a little more favourably, but the listing itself stays for the full five years. A default only comes off early if it was listed in breach of the rules. ↑ top
Privacy Act 1988
The Commonwealth law that governs credit reporting in Australia through Part IIIA and the Credit Reporting Code. A listing made in breach of these rules can be challenged and corrected. ↑ top
repayment history information (RHI)
A month-by-month record of whether each credit account was paid on time, kept for 24 months under comprehensive credit reporting. An incorrect late marker can sometimes be corrected with evidence. ↑ top
section 21D notice
A notice a credit provider must give before listing a default, telling you of the intention to list and giving you a chance to pay first. If this notice wasn't properly issued, the default may be open to challenge. ↑ top
secured debt
A debt backed by an asset the lender can repossess if you don't pay — for example a mortgage (the house) or a car loan (the car). ↑ top
serious credit infringement
A listing made where a provider reasonably believes you've shown an intention not to pay — often after a clearout. It can remain on file for up to seven years, longer than a standard default. ↑ top
statute-barred debt
A debt that is too old to be enforced through court because the limitation period has passed — usually six years in most states and territories (three years in the Northern Territory). A debt being statute-barred doesn't automatically remove a credit listing. ↑ top
unsecured debt
A debt not backed by an asset — for example most credit cards and personal loans. There's no specific item for the lender to repossess, but the debt is still legally owed. ↑ top
variable interest rate
An interest rate that can move up or down over the life of a loan, usually tracking the lender's funding costs. Opposite of a fixed rate. ↑ top
Spotted a Term That's on Your File — Like a Default or Judgment?
A free, no-obligation assessment checks whether anything on your file was listed in breach of the Privacy Act 1988. No Win No Fee — you only pay if we succeed.
Australian Credit Solutions Pty Ltd holds Australian Credit Licence ACL 532003. This glossary is general information only and does not constitute legal or financial advice. Definitions are explained in plain language and simplified; specific situations depend on the individual facts and the Privacy Act 1988, the Credit Reporting Code and other applicable law.
Last updated: 14 June 2026 · Reviewed by Elisa Rothschild BA/LLB · ASIC ACL 532003