--- title: How to recover from a credit default description: First, stay calm. Keep in mind that a default doesn’t determine your entire future. Although it can temporarily make borrowing more difficult, many individuals recover from defaults regularly. Ultimately, what counts is how you decide to proceed from this point. --- [Skip to content](https://help.breezefinance.com.au/knowledge-base/how-to-recover-from-a-credit-default#main-content) [Sign in](https://help.breezefinance.com.au/_hcms/mem/login?redirect_url=https%3A%2F%2Fhelp.breezefinance.com.au%2Fknowledge-base%2Fhow-to-recover-from-a-credit-default&hsLang=en-au) Open main navigation Close main navigation - [Sign in](https://help.breezefinance.com.au/_hcms/mem/login?redirect_url=https%3A%2F%2Fhelp.breezefinance.com.au%2Fknowledge-base%2Fhow-to-recover-from-a-credit-default) How can we help you? - There are no suggestions because the search field is empty. 1. [Breeze Finance](https://help.breezefinance.com.au/knowledge-base?hsLang=en-au) 2. [ Difficulty paying ](https://help.breezefinance.com.au/knowledge-base/difficulty-paying?hsLang=en-au) 3. [ Defaulting on a loan ](https://help.breezefinance.com.au/knowledge-base/difficulty-paying?hsLang=en-au#defaulting-on-a-loan) # How to recover from a credit default ## First, stay calm. Keep in mind that a default doesn’t determine your entire future. Although it can temporarily make borrowing more difficult, many individuals recover from defaults regularly. Ultimately, what counts is how you decide to proceed from this point. #### **PAY IT OR SORT IT OUT** If the default is still unpaid: - Pay it in full **or** - Set up a payment arrangement with the lender Once it’s paid, your credit report will show **“paid default”**, which is much better than unpaid. Even though the default remains on your file, lenders place a lot of weight on whether it’s paid. Find out more about payment arrangements [HERE](https://help.breezefinance.com.au/knowledge-base/what-is-a-payment-arrangement?hsLang=en-au) #### **STOP ANYTHING ELSE FROM GOING OVERDUE** Going forward, consider paying all your bills on time and setting up direct debits whenever possible. This way, you can help ensure payments are never missed. Lenders prefer to see that any default was just a one-time occurrence, rather than a recurring pattern. #### **GIVE IT TIME** Defaults stay on your credit report for **5 years**, but: - Their impact (if paid) **reduces over time** - The biggest improvement usually happens after **12–24 months of clean history** Maintaining patience and practising good behaviour are the keys to gradually restoring your credit file. Keep at it, and you'll see positive changes over time! #### **SHOW POSITIVE BEHAVIOUR** Good signs lenders look for: - Stable income - Stable employment - Rent paid on time - Existing loans repaid as agreed - No new defaults or late payments You don’t need to be perfect — just consistent. #### **WHAT LENDERS LOOK FOR AFTER A DEFAULT** When lenders are considering credit with a default on file, they ask: - Is the default **paid**? - How long ago did it happen? - What’s the borrower done **since then**? A paid default from a few years ago, with a clean history since then, is often **manageable in the lender's eyes**. - [General information](https://help.breezefinance.com.au/knowledge-base/general-information?hsLang=en-au#main-content) - [Contact Us](https://help.breezefinance.com.au/knowledge-base/general-information?hsLang=en-au#contact-us) - [Fees](https://help.breezefinance.com.au/knowledge-base/general-information?hsLang=en-au#fees) - [Product returns and refunds](https://help.breezefinance.com.au/knowledge-base/general-information?hsLang=en-au#product-returns-and-refunds) - [Your rights and obligations to the goods you finance](https://help.breezefinance.com.au/knowledge-base/general-information?hsLang=en-au#your-rights-and-obligations-to-the-goods-you-finance) - [Credit enquiries](https://help.breezefinance.com.au/knowledge-base/general-information?hsLang=en-au#credit-enquiries) - [Voluntary surrender of goods financed with us](https://help.breezefinance.com.au/knowledge-base/general-information?hsLang=en-au#voluntary-surrender-of-goods-financed-with-us) - [Compliments & Complaints](https://help.breezefinance.com.au/knowledge-base/general-information?hsLang=en-au#compliments-complaints) - [Repayments](https://help.breezefinance.com.au/knowledge-base/repayments?hsLang=en-au#main-content) - [Repayment changes](https://help.breezefinance.com.au/knowledge-base/repayments?hsLang=en-au#repayment-changes) - [Payment methods](https://help.breezefinance.com.au/knowledge-base/repayments?hsLang=en-au#payment-methods) - [General advice](https://help.breezefinance.com.au/knowledge-base/repayments?hsLang=en-au#general-advice) - [Manage account](https://help.breezefinance.com.au/knowledge-base/manage-account?hsLang=en-au#main-content) - [My account](https://help.breezefinance.com.au/knowledge-base/manage-account?hsLang=en-au#my-account) - [Statements](https://help.breezefinance.com.au/knowledge-base/manage-account?hsLang=en-au#statements) - [Difficulty paying](https://help.breezefinance.com.au/knowledge-base/difficulty-paying?hsLang=en-au#main-content) - [Talk to us](https://help.breezefinance.com.au/knowledge-base/difficulty-paying?hsLang=en-au#talk-to-us) - [Payment arrangements](https://help.breezefinance.com.au/knowledge-base/difficulty-paying?hsLang=en-au#payment-arrangements) - [Financial hardship](https://help.breezefinance.com.au/knowledge-base/difficulty-paying?hsLang=en-au#financial-hardship) - [Defaulting on a loan](https://help.breezefinance.com.au/knowledge-base/difficulty-paying?hsLang=en-au#defaulting-on-a-loan) - [Explore free support options](https://help.breezefinance.com.au/knowledge-base/difficulty-paying?hsLang=en-au#explore-free-support-options) - [Voluntary surrender](https://help.breezefinance.com.au/knowledge-base/difficulty-paying?hsLang=en-au#voluntary-surrender) [![breeze finance white](https://help.breezefinance.com.au/hs-fs/hubfs/breeze%20finance%20white.png?width=200&height=125&name=breeze%20finance%20white.png "breeze finance white")](https://help.breezefinance.com.au/?hsLang=en-au) BREEZE CAPITAL PTY LTD ACN: 147 671 949 - IS AUTHORISED UNDER AUSTRALIAN CREDIT LICENSE: 468425. 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