Quick answer: Missed repayments can matter even without a formal default. OAIC says repayment history remains for two years and a payment more than 14 days late can be recorded as missed. Lenders can then assess recency, severity and whether the account has recovered.
Questions borrowers commonly ask
- I had no default but old missed payments killed my application — what now?
- My partner had a pattern of missed payments but can afford the car today. How much does the history matter?
RHI is separate from default
A borrower can have no default and still show material arrears history.
One late payment is not six months in arrears
The number, recency and depth of arrears change the story.
Is the account current now?
If current conduct has recovered, lender choice can improve over time. If arrears continue, adding a car loan can worsen the position.
General information only. Approval, pricing, fees, income treatment and vehicle eligibility depend on the lender, borrower circumstances and contract.
Frequently asked questions
Can RHI matter without a default?
Yes.
How long does it stay?
OAIC says two years.
When can a missed payment be recorded?
More than 14 days late under OAIC guidance.
Does closing the account remove old RHI?
No.
Should I wait?
A period of clean conduct can help.
Sources and verification
Related GPS Finance resources
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