If you’ve ever missed a payment, defaulted on a loan, or had a debt referred to a collection agency, chances are it’s been recorded on your credit report as a black mark. These negative entries can stay on your credit report for a period of time, and can impact your ability to obtain credit or get favourable interest rates.
So, how long do these black marks stay on your credit report? The answer is, it depends.
In Australia, most negative entries on your credit report will remain on your file for five years from the date they were listed. This includes defaults, court judgments, bankruptcy, and other credit infringements. However, some types of black marks may stay on your file for a shorter or longer period of time.
For example, if you have applied for credit and been declined, this will stay on your credit report for up to five years. Similarly, if you have made a credit application, the inquiry will remain on your file for up to two years.
On the other hand, serious credit infringements such as bankruptcy or a court judgment may remain on your file for up to seven years, while overdue accounts or missed payments may remain for up to two years.
It is worth noting that paying off a black mark does not necessarily mean it will be removed from your credit report immediately. Rather, it will be updated to reflect that the debt has been paid, but the entry may still remain on your file for the remainder of the five-year period.
So, what can you do to remove a black mark from your credit report? In some cases, it may be possible to have the negative entry removed if it was listed in error or if you have taken steps to resolve the debt. However, this can be a lengthy and complex process and may require the assistance of a credit repair service.
In summary, black marks on your credit report can stay on your file for up to five years, depending on the type of infringement. While paying off the debt may help to improve your credit score, it does not necessarily mean the entry will be removed from your report. If you need assistance in removing negative entries from your credit report, consider seeking the advice of a credit repair specialist.
