Your credit score is calculated based on the information held on your credit file. Different types of information can be held on your file for a varying amount of time, so it pays to know how long each type of information can stay on your file.

In some cases, the information can have a positive influence on your score but in others, it can be negative. Let’s take a look below.

Credit accounts and relationships – As long as the account or relationship is open and then 2 years after

Information about credit accounts and relationships will remain on your credit file whilst the account or loan is open and then for up to 2 years after they have been closed.

Repayment history – Up to 2 years

Your repayment history shows whether you have made your payments on time each month for credit accounts and products. Up to 24 months of repayment history can be held for each credit account on your file.

Enquiries – 5 years

When you apply for a credit product, a credit enquiry is recorded on your credit file by the credit provider. How enquiries affect your credit score depends on the frequency and recentness of the enquiries, the type of credit applied for and the provider of the credit.

These are recorded on your file for five years.

Defaults – 5 Years

A default is recorded on your credit file if your payment of $150 or more is overdue by 60 days or more. Defaults stay on your file for five years.

Whilst paying or settling a default won’t remove it, your file should be updated to reflect that updated status.

Serious credit infringements – 7 years

A serious credit infringement occurs where you have fraudulently obtained or attempted to obtain credit, or have stopped making payments and your credit provider was unable to get in contact with you for more than six months.

A serious credit infringement will remain on your credit report for 7 years.

Court judgements – 5 years

A court judgement is a decision by the court that requires you to pay your credit provider what you owe them plus any fees, charges, and interest.

The credit reporting body will source information about court judgements from public records. A court judgement will remain on your credit file for 5 years from the date the judgement was given.

Bankruptcies – at least 5 years

Credit files and reports will include publicly available information about personal insolvency, including bankruptcies. They can also include other insolvency information such as debt agreements or personal insolvency agreements. These will stay on your credit report for at least 5 years and sometimes longer.

Anything else?

The other types of information that can be included on your credit file can also include identifiable information such as your name (including maiden or other names you might go by), date of birth, gender, address (current and past), employer (current and past), plus your driver’s licence number (if you have one).

If you haven’t already, you can sign up to Credit Savvy and get your credit score and credit report summary today.