How Can I Get a Default Removed from My Credit History

By Angela Monroe - March 27, 2020

Having defaults on your credit history can be really frustrating. Even if you are currently on a better financial track, you may still have problems borrowing money so clearing a default on bad credit history will be a top priority for you.

There are a few steps you can take to look into clearing a default on bad credit history – but you also need to be aware that there are certain durations that some negative marks are required to remain there. Being patient and waiting for these to clear isn’t always easy, but it’s sometimes necessary.

Key steps to clearing a default on bad credit history

  • Get a copy of your credit report

You’ll want to get hold of your credit report in order to check that any defaults are accurate and correct. You can request a copy of your credit report from credit reporting bureaus such as Equifax and Experian – they are free and can be ordered online. It’s often good to get a report from a few different bureaus as details can vary.

  • Look for ‘black marks’

A black mark will be the information regarding a default that will act as a red flag to a potential lender and raise questions about your status as a responsible borrower.

Some examples of black marks you may find on your credit report include:

  • Missed payments
  • Court judgements
  • Defaults on a loan
  • Bankruptcy
  • Multiple credit enquiries
  • Research whether you are able to remove the black marks

If any of the black marks are inaccurate or simply incorrect you can request for them to be removed. Incorrect listings are sometimes made by mistake with lenders double reporting a single debt, or simply putting a black mark on your account rather than someone else’s. In this case, you are entitled to file a dispute.

If you’re looking at clearing a default on bad credit history, which is correct, you may simply have to wait it out.

  • Understanding length of time for clearing a default on bad credit history

Generally, most negative marks will stay on your credit report for seven years. This may seem like a long time but it is information that is used by lenders to see whether they are happy to approve loan applications that you make.

If you don’t feel able to wait until your defaults have been cleared from your bad credit history, you should speak to lenders who deal specifically with people with bad credit. This will enable you to work directly with experienced professionals who can make loan applications easier and hopefully allow you to find the right loan for you.

  • Employing a credit repair service

Clearing a default on bad credit history is something that you can do yourself by following some of the steps above. In some cases it may not be possible, simply because of the time span that defaults stay on your credit record – it’s simply a matter of waiting.

Some people with bad credit do enlist the help of a credit repair service  – yet it’s important to be aware that they will face the same restrictions as you in terms of time scales and can only remove incorrect or inaccurate listings.

Before you employ a credit repair service, consider the fees that they will charge and whether these are something you can afford. You should also be aware that there is no guarantee that a credit repair service will be able to repair your credit rating and clear defaults on bad credit history.

 

Angela Monroe
Angela Monroe is the Community Manager at The Positive Group, specialising in giving people the information that they need when they need it, and putting you on the path to a fair financial future. She has 8 years of experience in helping Australians find the right finance solutions, and regularly contributes articles to empower Australians with the knowledge they need to become financially healthy.

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