Quick answer
Yes, a hardship arrangement shows on your credit report, but it is not a default and it cannot be used to calculate your credit score. The hardship marker stays for 12 months and the repayment history around it for 24. Future lenders can see it, so what matters is how you explain it and when you apply.
Key points
- Since 1 July 2022 lenders must report hardship arrangements. They appear as a marker against your repayment history, not as a default.
- A credit reporting body can't use hardship information to calculate your credit score, and the report doesn't show why you asked for help.
- Temporary arrangements show an 'A' marker that drops off a year after the final repayment; a permanent change shows a 'V' that drops off a year after it started.
- Repayment history information (the 0 to 7 number showing how late payments were) is held for two years, and that can matter more to a new lender than the hardship marker.
- Banks, non-banks and private lenders read the same file differently, so the order you approach them in is worth planning.
Will a hardship arrangement affect my credit report?
Yes, it will show, but it is much gentler than a default. Since 1 July 2022, lenders have had to tell the credit reporting bodies when they agree to a hardship arrangement. Before that date, these arrangements couldn’t appear on a credit report at all. Today the arrangement appears as a marker beside your repayment history, a credit reporting body can’t use it to calculate your credit score, and the report doesn’t say why you asked for help.
The honest catch is that the next lender can see it. So the real question isn’t “does it show?” but “how will the lender I want next read it, and when should I ask?” That’s what this guide covers.
What exactly goes on your credit file?
Two separate things, and people often mix them up.
1. The hardship marker. According to the OAIC, a temporary arrangement is marked with an “A” against each repayment during the arrangement. A permanent variation (where the loan terms were changed for good) is marked with a “V” against the repayment when it started.
2. Repayment history information. This is the month-by-month record of whether you paid on time. It’s shown as a number from 0 to 7 representing how many months old your oldest missed payment is, and it stays for two years.
| Item | What it shows | How long it stays |
|---|---|---|
| “A” marker (temporary arrangement) | A hardship arrangement was in place for that repayment | Removed one year after the final repayment under the arrangement |
| “V” marker (permanent variation) | The loan terms were changed on hardship grounds | Removed one year after the arrangement started |
| Repayment history number (0–7) | How overdue the oldest missed payment was | Two years |
| Default listing | An overdue debt that was chased and not paid | Separate rules, held for years (see our guide on how long defaults stay on your credit file) |
Two things are not on the file: the reason you needed help, and any judgement about you. If another lender wants the reason, they have to ask you directly, and it’s your decision what you share.
Is a hardship arrangement a default?
No, and this is the single most useful thing to know. A default is a negative listing for an overdue debt that has been chased and not paid. A hardship arrangement is a formal agreement that changes how you pay. The lender agreed to it, and it’s recorded as help given, not as a debt abandoned.
The danger sits on either side of the arrangement:
- Before it. Payments missed while you were working up the courage to ask can still be recorded in your repayment history. That’s the strongest reason to ask early, before the first miss rather than after the third.
- After it. If the arrangement lapses and the account goes overdue again, you’re back on the default path.
If you’ve already been listed with a default on the same account, that’s a separate problem with its own fixes. Start with your credit report so you know exactly what’s there.
Does it hurt your credit score?
Not directly. The Credit Reporting Code stops a credit reporting body from using financial hardship information to calculate a score. In practice a score can still dip for related reasons, such as a late payment recorded before the arrangement, a new enquiry, or a high balance. If your score has dropped and you aren’t sure why, our guide on why your credit score has dropped walks through the usual suspects.
Remember too that lenders making a home loan or refinance decision generally look past the score to the underlying report. A tidy score with a visible arrangement can still prompt questions.
How do different lenders read a hardship marker?
Here’s a plain-English picture. These are general patterns, not rules, and every lender sets its own policy.
- Major banks and mainstream lenders are the most cautious. Many prefer to see the arrangement finished and some months of clean, on-time repayments before they consider a new loan. A live arrangement can mean a decline, or a request to come back later.
- Non-bank lenders often weigh the whole file: your current income, equity, the loan-to-value ratio and the reason things went wrong. A recovered income and a clean run since can carry real weight.
- Private lenders focus mostly on the security property and the exit plan. A marker matters less than whether the numbers work and how the loan will be repaid or refinanced.
The practical lesson: don’t take a hardship file to the toughest lender first. Each application leaves an enquiry on your file, and a string of declines is its own problem. (We explain this in why you shouldn’t apply for loans everywhere.) It’s better to have someone read your file before you apply anywhere.
When should you apply for a refinance after hardship?
There’s no single date, but this sequence gives the strongest position:
- Get your own credit report first. Check each marker is accurate and see exactly when each one drops off. If something is wrong, fix it before applying. Our guide on fixing an error on your credit report shows how.
- Finish the arrangement properly. Get written confirmation that it has ended and the account is back to normal terms.
- Build a run of on-time payments. Even a few clean months show the problem was temporary.
- Write a short explanation. One paragraph: what happened, what changed, and what’s different now. Keep it factual and don’t over-explain.
- Choose the lender type to match the file. If you’re past the worst but still carrying a marker, a non-bank or private route may fit sooner than a bank.
A worked example
Say a self-employed owner-occupier had a slow patch and agreed a temporary arrangement on their home loan for several months. Their income has since recovered, but they now want to refinance and pull out some equity to clear other debts. Their credit report shows “A” markers against those months and a clean run since. A major bank may ask them to wait until the markers are older. A non-bank lender might assess the recovered income and the equity and be willing to talk now. If time matters, a short private loan can bridge the gap with a refinance back to a mainstream lender once the markers have dropped off. The point is that the same file can produce three different answers depending on who looks at it.
If you’re already weighing options like this, our page on financial hardship refinance explains the routes in more detail, and if you want a quick read on where you stand, you can check your options here.
What if your lender says no to hardship help?
You still have options, and they cost nothing to try. Under section 72 of the National Credit Code you can give a hardship notice verbally or in writing. ASIC’s guidance sets out the timeline: the lender can ask for more information within 21 days, and has to respond within a set period (21 to 28 days, depending on whether it asked you for information). If it refuses, you can use its internal complaints process and then the Australian Financial Complaints Authority, or apply to a court under section 74 of the Code to change the contract.
Free help is available. A financial counsellor on the National Debt Helpline (1800 007 007) can help you write the request and negotiate. Putting everything in writing, and keeping copies, protects you if the arrangement is later disputed.
Mistakes that make a hardship file look worse
- Asking after the missed payments rather than before. The earlier you ask, the less repayment history gets marked.
- Not confirming the arrangement in writing. Verbal promises vanish. Get the terms, the end date and what happens after in writing.
- Applying everywhere at once. Each application is another enquiry, and a pile of declines reads badly.
- Assuming the marker is permanent. It isn’t. Know the drop-off dates from your report and plan around them.
- Hiding it. The marker is visible to lenders. A calm, honest explanation beats an awkward surprise.
Looking for a refinance after hardship?
Sounds like you’re after a refinance or loan that looks at your whole situation, not just a marker on a file. We work with people who’ve had a rough patch all the time, and we know which lenders will read a hardship arrangement fairly. Click the button below and see if you qualify.
Enquiring takes about 60 seconds, and your credit file isn’t touched just for asking, so there’s no credit check at this stage. We won’t send your details to a pile of lenders, either. A real person will look at your situation and call you to talk it through. Please fill the form in accurately so we can match you with the right option first time.
Frequently asked questions
Is a hardship arrangement the same as a default?
No. A default is a listing for an overdue debt that has been chased and not paid, and it follows a separate set of rules. A hardship arrangement is a variation your lender agreed to because you told them you couldn't meet your repayments. It's recorded as a marker alongside your repayment history. The risk is that missed payments before the arrangement can still be recorded, and an unresolved account can later become a default.
How long does a hardship arrangement stay on my credit report?
The OAIC says the hardship marker for a temporary arrangement is removed one year after the final repayment under the arrangement, and for a permanent variation one year after it started. The repayment history information it sits alongside is held for two years. Dates differ by account, so your own credit report is the best place to see when each item drops off.
Does a hardship arrangement lower my credit score?
Not directly. A credit reporting body can't use financial hardship information to calculate your score. Your score can still move for other reasons, such as late payments recorded before the arrangement started, which is why it is worth reading your report rather than assuming.
Will a lender see why I asked for hardship help?
No. The credit report doesn't show the reason. If another lender wants to know, they have to ask you, and you decide what to share. A short, factual explanation (for example a drop in income that has since recovered) usually helps more than saying nothing.
Can I get a home loan or refinance while I'm on a hardship arrangement?
It is harder, and some lenders will want the arrangement finished and a run of on-time payments first. Others will look at the whole picture: equity, income now, and why the difficulty happened. Non-bank and private lenders tend to be more flexible than major banks, but nothing is guaranteed and it depends on your file.
What if my lender refuses my hardship request?
Under the National Credit Code a lender has to respond to a hardship notice, generally within 21 to 28 days depending on whether it asked you for more information. If it says no, you can complain through its internal process and then to AFCA, and a court can be asked to change the contract. A free financial counsellor on the National Debt Helpline (1800 007 007) can help with the paperwork.
Should I avoid asking for hardship help to protect my credit?
Usually not. Missing payments with no arrangement can lead to overdue listings and, eventually, a default, which does more damage and lasts longer. Asking early, in writing, and getting the agreed terms confirmed is generally the lower-risk path for your credit file.