Repayment History Information (RHI)

Repayment History Information records whether you have repaid credit on time. It can only be collected on credit regulated under the National Consumer Credit Protection Act 2009 (the ‘National Credit Act’). It is not recorded for utilities, rates and other debts such as phone and electricity accounts.

If you pay on time, you will get a 0 (zero months behind) or a tick mark (✔️).
If you are behind in your repayments, you will get a number from 1 to 6 showing how many months you are behind in your repayments.
If you are more than 6 months behind, you will get an X. An ‘X’ noted on your credit report on more than one account can lead to a ‘credit score exclusion’ with the credit reporting body. This means that you may not be able to obtain finance with mainstream and affordable lenders until this is removed after the two-year period, or resolved by We Fix Credit.

It is important to note that not all repayment history can be removed from credit files as it is a government legislative requirement for the credit providers that provide consumer credit to list the late repayments, and generally they can only be removed if placed in error.

There is a 14-day grace period from the payment due date before any late payment (including part payment) is recorded on your credit report. The lateness of the payment is updated every 29 days. Often credit providers make errors with these listings and list late repayments before the 14-day grace period. In these cases, We Fix Credit and often resolve these disputes on your behalf and have the late repayment notations rectified. You may choose to dispute these listings yourself with the credit provider or use a credit repair option if the complaints process is too time consuming or complicated to resolve on your own.

Financial Hardship Information, what is it and how does it appear on my credit report? 

Changes to how financial hardship information is reported started on 1 July 2022.

If you negotiate a hardship arrangement with your lender, they will report your repayment history information as 0 or ✔️ as long as you keep to the arrangement. It will not change any missed payments listed in the past.

A Financial Hardship Indicator (FHI) will appear on your credit report and remain there for 1 year.

  • If your hardship arrangement is temporary (like a short-term reduction in your normal payments) your credit report will show a Financial Hardship Indicator ‘A’ for each month you are in the arrangement.
  • If your hardship arrangement is permanent (like adding your arrears to the end of the loan) your credit report will show a Financial Hardship Indicator ‘V’ for in the month when the arrangement began.

The reason you are in hardship is not recorded on your credit report. Financial hardship information is not used when calculating your credit score, however it is taken into careful consideration when assessing your overall credit situation for acceptance.

Lenders cannot cancel your current credit cards because you have gone into hardship with another bank (sometimes this can happen with credit default listings and other adverse information that is listed on your credit report). They will only see you are in a financial hardship arrangement if they have a valid reason to access your report. If you apply for a new loan or credit card, the lender may ask questions to understand whether you are still experiencing hardship and if you can afford more credit.

Ask your lender what will happen to your credit report when you make an arrangement. Also, get a copy of your credit report a couple of months later to check your Repayment History Information has been recorded consistently with your arrangement. If not, complain to the lender.

If you can’t keep to your repayment arrangement, negotiate a different arrangement with your lender before you fall behind. Ask how this new arrangement will show on your credit report. It is most important to communicate with the credit provider and keep open and transparent communication during this time.

What happens when the hardship arrangement ends?

When your hardship arrangement is finished, your Repayment History Information will go back to being reported against your normal monthly payments. Financial hardship information stays on your credit report for one year.

If you have arrears (money that you owe) after the arrangement ends, your Repayment History Information may still show missed or late payments even if you are paying extra to catch up. Talk to your lender and make a new hardship arrangement.

You may be able to negotiate with your lender for arrears to be added onto the end of your loan (capitalised) and for the loan term to be extended. This allows you to return to normal repayments at the end of your hardship period, however it will also increase your total loan repayment over the term. You will have a (V) on your credit report in the month the change occurs, and your Repayment History Information will be reported as up to date. It is always a positive contribution to your credit score when your loans are paid on time for a period of time and can assist with boosting your credit score. All that being said, it is not a good idea to actively seek loan applications for this purpose, as this initially will lower your overall credit score. There may be other ways that you can help boost your credit score, you are welcome to contact We Fix Credit to discuss your options.