If you have asked a lender for a hardship arrangement — a payment pause, reduced repayments or a changed loan term because money got tight — you may be wondering what that does to your credit file. Since July 2022 hardship help is recorded on your report in its own way. This guide explains how it shows, how long it stays, and when a related entry might be listed incorrectly.
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Investigation
We investigate the circumstances behind each listing on your credit file, identifying potential breaches of the Privacy Act or non-compliance with the Credit Reporting Code. This is completed with you over the phone through 40+ simple yes, no, or unsure questions, along with your personal circumstances at the time.
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If our investigation identifies multiple potential breaches, you may be approved for our credit restoration services. If not, your application will be declined, and your consultant will explain why, providing complete clarity.
Note: Approval does not guarantee the removal of any listing.
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Formal removal requests are lodged with Equifax, Experian, and relevant credit providers, with escalation to AFCA, the OAIC, courts, or other bodies where required.
If a breach is confirmed, listings may be removed, in most cases boosting your credit score and helping future finance applications.
What a hardship arrangement is
A hardship arrangement is a temporary change to how you repay a debt, agreed with your credit provider because of a genuine change in circumstances — illness, job loss, a drop in income. It can mean smaller repayments for a period, a short pause, or a longer loan term. Asking for hardship assistance is a right you have under the National Credit Code, and a lender must consider a reasonable request.
How hardship shows on your credit report
Since 1 July 2022, credit reports can carry financial hardship information (FHI). Where you have a hardship arrangement in place, a hardship indicator is recorded next to your repayment history for the months it applies. It is not a default and it is not a black mark in the old sense — it sits alongside the repayment history that was already being reported.
Financial hardship information stays on your file for 12 months, then drops off. The repayment history itself is kept for two years.
Not sure what is actually on your file?
For $39.95 we pull your Equifax and Experian files and walk you through every entry — defaults, enquiries, repayment history and any hardship notation — and tell you plainly what can and can’t be challenged.
Does a hardship notation hurt your score or your loan chances?
The rules give hardship information some protection. A credit provider is not allowed to use the fact that you had a hardship arrangement as the only reason to refuse you credit, and the hardship indicator is designed to show a lender that you kept up with an agreed reduced arrangement rather than simply missing payments. That said, lenders assess the whole picture, so it is honest to say a hardship period may still be one of the things a lender looks at. Many people find it a far better outcome than the missed-payment marks that build up if no arrangement is made.
When a hardship-related entry may be wrong
Problems usually show up not in the hardship indicator itself but in the repayment history around it. Some situations that may be open to a correction request:
- Your report shows missed payments for months when an agreed hardship arrangement was actually in place and being met.
- The hardship indicator was left on after the agreed period ended.
- A default was listed for an amount that was covered by a current hardship arrangement.
Where a listing does not match what was actually agreed, you can ask the credit provider or the credit reporting body to correct it — that is free to do yourself, and the credit reporting body generally has 30 days to respond. Where it is contested or the paperwork is complex, that is the kind of matter we help with. We never promise an outcome; we tell you honestly whether there are grounds.
Common questions
Does asking for hardship put a default on my file?
No. A hardship arrangement is recorded as hardship information, not as a default. Defaults are a separate type of listing with their own rules.
How long does hardship information stay?
Twelve months from when it is reported, then it is removed by the credit reporting body.
Can a lender reject me just because I had hardship?
The fact of a past hardship arrangement is not permitted to be the sole reason for a refusal, though lenders still assess your overall situation.
If missed payments or a default were listed while you were doing the right thing under an arrangement, it is worth checking where you stand. See what to do about a default notice, or how default removal works.
Start with the facts about your own file
A $39.95 credit file assessment shows you every default, judgement and enquiry on your Equifax and Experian files — and which ones may be open to challenge.
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