How Missed Payments Affect Your Credit Score in Australia

Missed payments lower a credit score by damaging repayment history, and the impact depends on how late the payment is, how often it happens, and whether a default is listed after 60 days overdue for $150 or more, with required notices, with repayment history recorded for two years and defaults recorded for five years in Australia.

Key takeaways

Payment history is a major driver: any payment 14+ days late can show in repayment history for 24 months on credit cards and loans under Comprehensive Credit Reporting in Australia.
Defaults are more serious: if an amount of $150+ is unpaid for 60+ days and the provider has sent required notices, a default can be listed for five years; serious credit infringements can stay seven years.
Utilities and telco bills don’t add monthly repayment history, but they can become defaults after 60+ days overdue when legal thresholds are met.
One late payment hurts less than repeated late payments, and recent late payments matter more than older ones.
Contact the lender early, ask for hardship help if needed, catch up fast, and check credit reports every three months for accuracy to limit damage and speed up recovery.

What counts as a missed payment in Australia

A payment reported as “late” in repayment history usually means it was not made within 14 days of the due date for eligible credit products like credit cards and loans.

Repayment history information (RHI) covers whether payments on consumer credit were made on time in each month and is recorded for 24 months on a month-by-month basis.

Only licensed credit providers such as banks and finance companies can report or access RHI in Australia, not utilities or telcos.

How late matters: 14, 30, 60, 90+ days

1–13 days late: typically not recorded in RHI as late, though fees and internal arrears may apply.
14–29 days late: may be recorded as a late payment in RHI for that month.
30–59 days late: continued lateness will keep showing as missed months in RHI, which can weaken approval prospects.
60+ days late: if the amount is $150 or more and required notices have been sent, the provider can list a default that remains for five years, which is more damaging than a single late entry in RHI.

Short-term effects on a credit score

A single late payment can reduce a score and may affect approval odds, especially if the overall file is thin or many recent applications exist.

The first priority is to bring the account up to date because future on-time months begin to offset the recent negative mark within the 24-month RHI window.

Long-term effects on a credit score

Late payments in RHI remain for 24 months, with recent months being weighed more when lenders assess risk.

Defaults listed after 60+ days overdue remain for five years, and serious credit infringements remain for seven years, both of which can affect access to credit and pricing even after the debt is paid.

Do all missed payments affect equally?

Credit cards, personal loans, car loans, and home loans: monthly repayment history is reported, and late entries can be recorded when 14+ days overdue.
Utilities, phone, internet: no monthly repayment history reporting, but overdue debts may be listed as defaults after 60+ days if other legal conditions are met, which remains for five years.
Buy now, pay later and similar: reporting varies by product and provider; monthly RHI applies only to licensed credit providers, not utilities or telcos.

Factors that influence the impact

Number of late months: repeated late months in the RHI signal elevated risk and can limit credit options.
Severity and recency: recent late payments and defaults matter more than older ones, especially within the 24-month and five-year windows.
Credit mix and overall history: The amount borrowed, number of applications, and long-term payment patterns also shape score movement.

What lenders see and for how long

RHI: last 24 months of monthly payment performance on eligible credit, including whether a payment was 14+ days late and when it was later made.
Defaults: $150+ and 60+ days overdue with proper notices can be listed for five years; serious credit infringements can be listed for seven years.
Applications and accounts: lenders see credit enquiries, open and closed accounts, and limits, which all factor into assessments.

Step-by-step: what to do after a missed payment

Pay as soon as possible to reduce the chance of a 14+ day late mark in RHI or to stop further late months recording.
Contact the lender, explain the reason, and propose a clear plan to get current to reduce future negative marks and support your account standing.
Ask about hardship help if cash flow is tight; a formal hardship arrangement can adjust obligations and will be noted for 12 months after it ends without lowering the score on its own.
Set up direct debit and alerts for future payments to keep the next months clean in RHI.
Check your credit reports every three months for free and dispute any errors with the bureau and the provider at no cost.

If the account is 60+ days overdue

A default can be listed if the debt is $150 or more, it is 60+ days overdue, and proper notices were sent by the provider, which then stays five years even if paid.

Paying the default updates it to “paid” but does not remove the listing, though a paid status looks better than unpaid to a lender.

Recovery timeline: practical plan

Week 1: make the missed payment, call the lender, and lock in a catch-up schedule; confirm in writing.
Weeks 2–4: bring the account fully up to date and set direct debit and calendar reminders for due dates.
Months 2–6: maintain on-time payments across all accounts to rebuild a consistent RHI pattern.
Months 7–12: avoid new applications unless required, as multiple enquiries can add risk signals during recovery.
Month 12+: keep paying on time; late marks age within the 24-month window and weigh less as strong recent history builds.

Checklist: prevent and limit damage

Pay any missed amount now and confirm receipt with the lender in writing.
Request a hardship arrangement if income has changed or expenses spiked.
Set direct debit and SMS/email reminders on all loans and cards.
Review statements to spot fees or errors and ask for corrections.
Get free reports every three months from each bureau and fix inaccuracies for free.

Hardship arrangements: how they show

A financial hardship arrangement can be temporary or permanent and can help keep repayment history up to date while the arrangement is active.

Hardship information displays alongside RHI and remains on the report for 12 months after the arrangement ends, while sticking to the arrangement supports recovery.

Disputes and corrections: do this early

Get a free copy of each credit report every three months and compare account details, amounts, and payment status for errors.

Dispute wrong or out-of-date entries with the bureau and the provider; this is a free process guided by Australian privacy rules.

Credit cards vs loans vs utilities

Credit cards and loans: payment that is 14+ days late can be recorded as a late month under RHI for 24 months.
Utilities and telco: no RHI, but a default can be listed for $150+ after 60+ days and proper notices, which stays five years.
Only licensed credit providers report RHI; utilities and telcos cannot access or submit RHI.

How to rebuild after multiple late payments

Focus on six straight months of on-time payments across all credit lines to re-establish positive momentum in RHI.

Keep balances manageable and avoid multiple new applications while recent late marks age within the 24-month window.

Practical templates you can copy and save

Use these plain-text templates and save them as a document for email or postal use to speed up action and create a written record.

Frequently asked questions

How long do late payments stay on a report in Australia? Repayment history entries remain for 24 months on eligible credit accounts.
How long do defaults stay? Defaults remain for five years; serious credit infringements remain for seven years, both are visible to lenders.
Do utilities report monthly payment history? No, utilities and telcos cannot report or access RHI, but they can list defaults if legal thresholds are met.
How often can a free credit report be requested? Every three months from each main credit reporting body.

Australia-specific rules to remember

RHI applies to consumer credit from licensed providers like banks and finance companies under Australia’s credit reporting system.
A default requires $150+ owing, 60+ days overdue, and required notices; it records for five years and can be marked paid after settlement.
Hardship can be recorded next to RHI and remains visible for 12 months after the arrangement ends, supporting fair assessment by lenders.

A straightforward action plan is behind today

Make the payment and confirm the account is current in writing the same day.
Call the lender to agree on a plan and ask about hardship if needed, then follow it closely.
Set automation and reminders to protect the next 24 months of RHI.
Pull reports from each bureau this quarter and correct mistakes for free.

Conclusion

Missed payments are fixable, and recovery starts the day payment patterns turn around, with RHI aging over 24 months and even defaults looking better when paid and followed by consistent on-time behaviour.

If guidance is needed or a clean plan is preferred, check out our services or get a free quote from Easy Credit Repair to map out a tailored path back to strong credit health in Australia.

Disclaimer: This article reflects research and our views; it is not financial or legal advice, and questions are welcome via direct contact for case-specific guidance.