Can Credit Repair Companies Remove Late Payments?

Short answer: sometimes — but only where the information was reported incorrectly or by a party not entitled to report it. Accurate repayment history cannot be removed by anyone, and no provider should tell you otherwise.

What repayment history information actually is

Since comprehensive credit reporting began, licensed credit providers can report a monthly repayment marker on credit accounts — a rolling record showing whether each month's payment was made on time, or how many days late it was.

Key facts:

• It stays on your file for 2 years — much shorter than a default's five.
• It applies to consumer credit accounts such as home loans, personal loans, car loans and credit cards.
• Only licensed credit providers may report it. Utilities, telcos and buy-now-pay-later providers that are not licensed credit providers generally cannot.
• A payment is usually only marked late once it is more than 14 days past the due date.

When a late payment marker may be able to be corrected

A dispute has a reasonable basis where, for example:

• The payment was actually made on time and the record is wrong.
• The account is not yours, or relates to identity theft.
• The marker was reported by an organisation not licensed to report repayment history.
• A hardship arrangement was in place and the reporting does not reflect it correctly.
• The account details, dates or ownership are incorrect.
• The marker is older than the two-year retention period.

Where one of these applies, a written dispute can be lodged with the credit provider or the credit reporting body. They generally have 30 days to investigate and give reasons.

When it cannot be removed

If the payment was genuinely late, the provider was entitled to report it, and it is within two years, the marker stands. That is true whether you dispute it yourself or through a service. Anyone promising removal of an accurate marker is making a promise they cannot keep.

Financial hardship information

If you had a hardship arrangement with your lender, that is recorded separately as financial hardship information, which sits alongside repayment history for 12 months. Lenders can see that an arrangement was in place, but not the details of why. If a hardship arrangement is not reflected properly on your file, that is worth raising.

What to do about accurate late payments

• Keep the next 24 months clean. Repayment history rolls off month by month, so consistent on-time payments progressively replace the bad months.
• Set direct debits for at least the minimum amount.
• Talk to your lender early if you can see a problem coming — hardship arrangements exist for this.
• Call the National Debt Helpline on 1800 007 007 for free financial counselling if repayments are unaffordable.

Doing it yourself

Raising a repayment history dispute is free. Contact the credit provider, use their internal dispute resolution process, and escalate to AFCA or the OAIC if you are not satisfied — both free to consumers.

Frequently asked questions

Do late payments matter as much as defaults? They carry less weight and last a quarter as long, but a run of them still affects lending decisions.

Can a telco late payment appear as repayment history? Generally no — telcos and utilities are not licensed credit providers, though they can list a default.

Does one late payment ruin a home loan application? Usually not on its own. Lenders look at the pattern.

Next step

Read more about repayment history and late payments, or ask for a free credit report assessment if you want someone to check how your markers were reported.

This article is general information only and does not take your personal circumstances into account.