Understanding Repayment History Information

Many Australians are unsure whether a few slip-ups on their credit report will hold them back from owning a home. The good news? A bad repayment history doesn’t always mean a dead end.

In this guide, we’ll walk you through what repayment history is, how it affects your credit report and your chances of getting a home loan, and what you can do if your record isn’t perfect.

Whether you’re starting fresh or fixing past mistakes, understanding your repayment history puts you in control.

What Is Repayment History?

Your repayment history is a month-by-month record of whether you’ve made your credit and loan repayments on time for things like credit cards, personal loans, and mortgages. It does not include utility bills, phone plans, or rent payments unless reported as serious defaults.

Since 2014, Australian credit reporting has shifted to a more detailed system called Comprehensive Credit Reporting (CCR). This means lenders don’t just see the negative stuff like defaults or bankruptcies, but also your positive repayment history.

Each month is assigned a number based on how late your repayment was (or if it was on time):

Lenders use this data, called Repayment History Information (RHI), to assess your credit behaviour and gauge how likely you are to repay a loan. It’s one of the most important elements they consider, especially when you’re applying for a home loan.

What Lenders See In Your Credit File

When a lender checks your credit file through Equifax, Experian, or another bureau, they don’t just see a generic “score.” They see a month-by-month breakdown of your last 24 months of repayment history, known as RHI.

Here’s an example of what a simplified RHI might look like on a credit report:

What this tells lenders:

• You were on time early in the year.
• You hit a rough patch around March–May.
• You caught up and eventually closed the account.

They’ll use this information to assess how risky you are and whether your missed payments were a one-off or part of a pattern.

Tip: Even a single recent late payment can affect your application, but strong on-time payments afterwards show recovery.

How To Improve Your Repayment History

If your credit report includes late or missed payments, don’t panic. Repayment history can be improved over time, and every on-time payment you make going forward helps rebuild your profile for your next application.

Here’s what you can do now

• Check your credit score and file: Use the credit score calculator and speak to your mortgage broker if it comes back with a low score. We can provide some guidance on how to get on the right track, albeit we can’t provide financial advice.
• Only apply for credit or a loan if and when you need it: Do your research before applying for a home loan and go with a lender that will take a common sense approach to your situation.
• Don’t overdraw your credit card.
• Make your repayments on time: Set up direct debit, have loan repayments scheduled for your payday and maintain a savings account with a pool of money to ensure you don’t miss your payments.
• Clear defaults where possible: Pay any defaults listed on your credit file.
• Stay in your current job and living address until you apply for your loan: This basic information will still play an important part when banks generate their own credit score.
• Build savings habits: Demonstrate that you’re good with your money by making regular deposits into a savings account.
• Talk to your credit provider if you’re in financial trouble: They may be able to help you by setting up a payment plan.
• If necessary, consolidate debt: Debt consolidation can be a great way to stay on top of your repayments across multiple credit cards and loan facilities. If you currently have a mortgage, it’s best that you speak to your mortgage broker about the best approach for your situation.
• Ensure your credit file has accurate and up-to-date information: If you’re a Home Loan Experts customer, we can apply to get you a free copy of your credit file and guide you through what it means for you and your ability to get finance.

Can You Still Get A Mortgage With A Bad Repayment History?

Yes, you can. Many non-bank and specialist lenders are open to borrowers with credit issues. Some assess your application manually, considering your income, stability, and explanation for past issues.

A few late repayments, even recent ones, don’t automatically disqualify you from getting a home loan. Many lenders are open to considering your full financial story and not just your credit file in isolation.

You may still be eligible for a home loan, particularly if:

• The missed payments were over six months ago.
• You’ve since made consistent, on-time repayments.
• There’s a clear explanation, such as illness, job change, or another life event.

As mortgage brokers, we work with a wide range of lenders and see these situations regularly. If you’re unsure where you stand, the next step is simply understanding your position and which lenders may be a good fit.