Credit reporting changes will boost thousands of credit scores this February

Come Feb 14, getting a home loan, personal loan or even a business loan could become easier for thousands of Aussies, as amendments to credit reporting standards will see civil court filings no longer reflected in one’s credit scores.

The Office of the Australian Information Commissioner (OAIC) has approved the change to the Credit Reporting Code 2014. According to the new code, writs and summons will not be considered publicly available information and will be scrapped from individual’s credit reports.

Australian Information Commissioner and Privacy Commissioner Angelene Falk said the changes will balance the need for efficiency in credit reporting with the need for individual privacy.

“The amendments limit the types of information that can be included on credit reports, to the advantage of consumers, by ensuring that publicly available information which is not relevant to an individual’s creditworthiness is not included on credit reports,” she said.

Who stands to benefit?

Prior to these changes, anyone who had a claim filed against them would see their credit score take a hit, even if the claim didn’t make it to court, let alone result in a judgement (an order by a magistrate or assessor when deciding a case). 

This was a major source of frustration for business owners in particular, with many finding themselves unable to negotiate on interest or outright rejected when applying for necessary business loans

When the new legislation comes into effect mid-February, only judgements will be recorded on a person’s credit file, and they must be credit related in order to impact their credit score.

MyCRA Lawyers CEO Graham Doessel said the rules will also be appreciated by mortgage brokers, who would constantly find themselves on the backfoot when negotiating home loan deals for clients who had trivial court judgements to their name.

"Tens of thousands of Australians have had their credit rating destroyed, businesses and financial security put in jeopardy all because civil court actions treated defendants as guilty till proven innocent when it came to their credit rating,” Mr Doessel said.

Will I have to do anything?

If your credit score has been tainted by a non-credit related judgement, it should automatically be removed by February 14.

But if it remains past that date, you might have to get in contact with a credit reporting bureau and ask to have it removed directly. You'll likely be required to contact each credit reporting bureau individually.

If you’re looking for more ways to improve your standing in the eyes of lenders, check out our list of things that hurt your credit score and how to avoid them. And if you’re in the market for a home loan, browse our home loan comparison page for a look at what’s available.

Home loan comparisons on Mozo - last updated 13 August 2022

Search promoted home loans below or do a full Mozo database search . Advertiser disclosure
  • Variable Home Loan 70

    interest rate
    comparison rate
    Initial monthly repayment
    3.10% p.a. variable
    3.12% p.a.

    Affordable home loan rate for buyers or refinancers.. No monthly or ongoing fees. Option to add an offset for 0.10%. Access to savings with unlimited redraws available. Minimum 30% deposit required.

  • Unloan Variable

    Owner Occupier, Refinance Only

    interest rate
    comparison rate
    Initial monthly repayment
    3.14% p.a. variable
    3.06% p.a.

    For refinancers only. Built by CommBank, the Unloan is the first home loan with an increasing discount (conditions apply) for borrowers. No application or banking fees. No monthly account keeping or early exit fees. Apply in as little as 10 minutes.

  • PAYG Home Loan

    Owner Occupier, Principal & Interest, LVR<80%

    interest rate
    comparison rate
    Initial monthly repayment
    3.29% p.a. variable
    3.33% p.a.

    Low variable rate. Ideal for new home buyers or refinancers. Unlimited additional repayments. Unlimited free redraw. Application completely online. Optional 100% offset can be added for $120 p.a.. 20% deposit required.

  • Celebrate Variable Home Loan

    <60% LVR, Owner Occupier, Principal & Interest

    interest rate
    comparison rate
    Initial monthly repayment
    3.79% p.a. variable
    3.79% p.a.

    Fast and efficient online application. Automatic discounts as loan is paid down. Free extra repayments and redraw facility. Zero fees. Min 40% deposit required.


* WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for $150,000 over 25 years.

** Initial monthly repayment figures are estimates only, based on the advertised rate, loan amount and term entered. Rates, fees and charges and therefore the total cost of the loan may vary depending on your loan amount, loan term, and credit history. Actual repayments will depend on your individual circumstances and interest rate changes.

^See information about the Mozo Experts Choice Home Loan Awards

Mozo provides general product information. We don't consider your personal objectives, financial situation or needs and we aren't recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice.

While we pride ourselves on covering a wide range of products, we don't cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo.