Introduction: The Hidden Factor Destroying Your Credit Score

There’s something on your credit file that could be affecting your score every single month, yet most Australians have never heard of it. It’s not a default. It’s not a court judgement. It’s not even a credit enquiry.

It’s called RHI—Repayment History Information—and for many people, it’s quietly killing their credit score without them ever knowing it exists.

What Is Repayment History Information (RHI)?

Since the introduction of Comprehensive Credit Reporting in Australia, licensed credit providers have been permitted to report your monthly repayment behaviour directly to the credit bureaus. Since around 2022, this reporting has become widespread, with most major lenders now providing monthly updates on how you’re managing each of your credit accounts.

Every month, your creditors send through a code that indicates whether you paid on time—or how late you were if you didn’t.

Understanding the RHI Codes

The codes that appear in your credit file’s RHI section work as follows:

– “Current” or “0” or a tick (✓): You paid on time, or no more than 14 days late
– “1”: You were 15-29 days late
– “2”: You were 30-59 days late
– “3”: You were 60-89 days late
– “4”: You were 90-119 days late
– “5”: You were 120-149 days late
– “6”: You were 150-179 days late
– “X”: You were more than 180 days late (six months or more)

This information gets reported every single month for every credit account you hold with a licensed credit provider. That includes credit cards, personal loans, car finance, home loans, buy-now-pay-later accounts, and more.

Why RHI Has Such a Devastating Impact

Two Years of Monthly Snapshots

Here’s the part that catches most people off guard: RHI stays on your credit file for two years. That’s 24 months of monthly snapshots showing exactly how you’ve managed every single credit account.

One late payment doesn’t just disappear next month. It sits there for 24 months, dragging your score down every single day.

The Compounding Effect

Unlike a single default that happens once, RHI creates a rolling record of your behaviour. If you had a rough few months—perhaps due to job loss, illness, or unexpected expenses—those late payment markers compound on top of each other.

Even after you’ve recovered and started paying on time again, those negative markers continue to weigh down your score until they individually expire after 24 months.

Worse Than Defaults for Your Score

Many people are surprised to learn that extensive negative RHI can actually damage your credit score more severely than a single default. While a default is a one-time event, months of “1”, “2”, or “3” codes paint a picture of ongoing difficulty with credit management.

Lenders use RHI to assess your recent payment behaviour, and a pattern of late payments can be more concerning than historical issues.

How RHI Reporting Works Behind the Scenes

No Warning, No Notice

Unlike defaults, which require formal notice procedures before listing, RHI is reported automatically. There’s no letter warning you that a late payment is about to be recorded. There’s no opportunity to fix the situation before it hits your file.

Your creditor simply submits their monthly report to the credit bureaus, and the information appears on your file. By the time you become aware of it, the damage is already done.

Automatic Systems, Potential Errors

Because RHI reporting is automated and happens for millions of accounts every month, there’s significant potential for errors. Systems glitch. Payments get processed late through no fault of the consumer. Direct debits fail because the creditor attempted the deduction on the wrong day.

The creditor’s system logs the account as late, and that information flows through to your credit file—whether it’s accurate or not.

Common RHI Errors and Issues

Payment Processing Delays

You made your payment on time, but it took several days to process through the banking system. By the time it credited to your account, the creditor’s system had already flagged you as late for their monthly report.

Failed Direct Debits

Your direct debit failed—perhaps because the creditor tried to deduct on a weekend, or there was a technical issue with the transfer. Even though you weren’t at fault, the failed payment may have been reported as late.

Hardship Arrangements Not Properly Recorded

You were granted a hardship variation by your creditor, which should have protected you from negative reporting during the arrangement period. However, the hardship flag wasn’t properly applied to your account, and late payments were reported anyway.

This is a particularly common issue and one that often goes undetected until the consumer reviews their credit file in detail.

Disputes and Chargebacks

You were disputing a charge or had initiated a chargeback process. While the dispute was ongoing, the creditor reported the “unpaid” amount as late—even though payment was legitimately withheld pending resolution.

The Real-World Impact of Negative RHI

Declined Applications

Many lenders have automated systems that flag applications with negative RHI for manual review or automatic decline. Even one or two late payment markers can trigger additional scrutiny.

Higher Interest Rates

Lenders who do approve applications with negative RHI often factor it into their pricing. You may be offered credit, but at a significantly higher interest rate than someone with clean RHI.

Lower Credit Limits

Your approved credit limit may be substantially lower than what you applied for, based on concerns about your payment patterns shown in the RHI section.

Mortgage Implications

For home loan applications, lenders pay particularly close attention to RHI. Mortgage assessors want to see consistent, on-time payments. Any late payment markers can complicate your application and potentially affect the loan amount you’re approved for.

How to Check Your RHI

To see what’s in your RHI section, you need to obtain copies of your credit files from both Equifax and Experian (formerly Illion). When reviewing your file, look for the section that shows your monthly repayment history for each account.

You’ll see a grid or list showing each month’s status going back up to 24 months. Look for anything other than “Current” or a tick—any numbers (1, 2, 3, etc.) indicate recorded late payments.

What Can Be Done About Inaccurate RHI?

If you believe the RHI on your credit file is inaccurate, you have the right to dispute it. The process involves:

1. Documenting the issue: Gather evidence showing why the reported information is wrong
2. Contacting the creditor: Request they investigate and correct their records
3. Formal dispute: If the creditor doesn’t resolve it, lodge a formal dispute with the credit bureaus
4. Escalation: If necessary, complaints can be escalated through AFCA or pursued with legal assistance

When Legal Help Makes a Difference

For complex RHI issues—particularly those involving hardship arrangements that weren’t properly recorded—professional legal assistance can be invaluable. A law firm can formally investigate the creditor’s records, identify where procedures were not followed, and pursue correction through appropriate channels.

Key Takeaways

– RHI reports your monthly payment behaviour for every credit account
– Late payment markers stay on your file for 24 months
– RHI is reported automatically with no warning
– Errors are common due to automated systems
– Negative RHI can affect your score more than defaults
– Inaccurate RHI can be disputed and corrected

What to Do Next

If your credit score is lower than you expected, don’t just look at defaults and enquiries. Request your full credit files and carefully review the RHI section for each account.

You might discover that the reason for your lower score has nothing to do with major negative events—it could be months of late payment markers quietly dragging you down, some of which may not even be accurate.