Your credit file is one of the most important financial documents you hold. Lenders use it to assess your creditworthiness when you apply for a home loan, personal loan, or credit card. Errors on your credit file - whether it's an incorrect default, a debt that's been listed twice, or outdated information - can reduce your credit score and affect your ability to borrow. The good news is that disputing errors is free and straightforward. Here's how.

Step 1: Check Your Credit Report

Under Australian law, you're entitled to a free copy of your credit report from each of the major credit reporting bureaus once every three months. The two main bureaus in Australia are:

When reviewing your report, look carefully for:

  • Incorrect personal details (name, address, date of birth, employer)
  • Credit enquiries you don't recognise (these could indicate identity theft)
  • Defaults or overdue accounts listed incorrectly or that have already been paid
  • Duplicate listings of the same debt
  • Accounts that don't belong to you
  • Debts that are older than the 5-year reporting period (7 years for serious infringements)

Step 2: Identify the Error and Gather Evidence

Once you've identified an error, gather documentation to support your dispute. Depending on the type of error, this may include:

  • Bank statements showing repayments were made on time
  • Letters or emails confirming a debt was settled or discharged
  • Correspondence showing a dispute was raised with the original creditor
  • Identity documents if you believe the listing relates to someone else or identity theft
  • Loan contracts or statements that show the debt amount differs from what's listed

Keep copies of all documentation - you'll need to submit these with your dispute.

Step 3: Dispute the Error

You can lodge a dispute directly with the credit bureau that holds the incorrect information. Both Equifax and Experian have online dispute portals:

Under the Privacy Act, credit bureaus are required to investigate your dispute and respond within 30 days. If the error is confirmed, the bureau must correct or remove the listing. You'll receive written confirmation once resolved.

Step 4: Escalate if Necessary

If the credit bureau or the organisation that listed the error does not resolve your complaint to your satisfaction, you can escalate to the Australian Financial Complaints Authority (AFCA). AFCA is a free and independent external dispute resolution scheme.

  • Website: afca.org.au
  • Phone: 1300 565 562
  • Mail: GPO Box 3, Melbourne VIC 3001

AFCA can require credit bureaus and credit providers to correct errors, remove listings, or provide compensation if their handling of your dispute was unreasonable.

Additional Considerations

Avoid paid credit repair companies. You do not need to pay a third party to fix errors on your credit file. Everything described above can be done for free by yourself. Some credit repair companies charge hundreds or even thousands of dollars for services you can access at no cost. The Australian Government's MoneySmart website (moneysmart.gov.au) has further guidance on this.

Note that legitimate negative listings - such as a default that was genuinely incurred - cannot be removed simply by disputing them. Credit repair companies that claim otherwise are misleading you.

Tips for Prevention

Staying on top of your credit file is the best way to avoid problems down the track:

  • Monitor regularly: Check your credit report at least once a year, and before applying for any significant loan.
  • Keep records: Retain confirmation when you pay off debts or settle accounts. These records may be needed years later.
  • Use free monitoring tools: Services like Credit Savvy (Experian) or Finder's credit score tool offer free ongoing credit score monitoring with alerts for changes.
  • Act quickly on errors: The sooner you dispute an error, the sooner it can be resolved - and the less impact it will have on any upcoming loan applications.

If you have concerns about your credit file and how it might affect your home loan application, speak with our team. We can help you understand your credit position and identify the right loan options for your situation.