My Partner and I Have the Same Default: What Now? Understanding Joint Defaults

Finding the same default on both your credit file and your partner’s credit file can feel overwhelming, especially when it is blocking a finance application or rental approval.

A joint default appears when you and your partner applied for credit together, signed a shared loan agreement or held a joint account that went into default.

Got a default on your credit file? Lodge it with Default Gone right here, or call us on (02) 5502 7025. $399 flat per consumer per default. We do not guarantee removal — outcomes depend on the facts of each case — but we will prepare and lodge the dispute properly.

The credit reporting system operates on a per-individual basis. This means that even though the default stems from the same debt or application, each consumer’s credit file is treated separately when it comes to disputes and corrections.

Short answer: Each default must be challenged separately

If you and your partner have the same default on both credit files, you will need to challenge each default individually. A successful dispute by one partner does not automatically correct the other partner’s credit file.

This applies even when:

• The default came from a joint loan or credit card
• You both signed the same application
• The debt was paid by one partner on behalf of both
• The circumstances are identical for both consumers

Why joint defaults appear on both credit files

Joint defaults typically arise from shared financial commitments where both partners are legally responsible for the debt.

Common sources of joint defaults

Joint home loans: When couples buy property together, both names appear on the mortgage. If repayments fall behind and a default is listed, it appears on both credit files.

Joint personal loans: Some lenders allow joint applications for personal loans, car loans or debt consolidation loans. Both applicants become liable for the full debt.

Joint credit cards: Shared credit card accounts where both partners are account holders (not just additional cardholders) can result in joint defaults.

Business loans with personal guarantees: When couples run a business together and both provide personal guarantees, defaults may be listed against both individuals.

Joint store credit: Some retailers offer joint credit accounts for furniture, electronics or other purchases.

How joint liability works

When you sign a joint credit agreement, you typically become “jointly and severally liable” for the entire debt. This means:

• Each person is responsible for the full amount, not just half
• The creditor can pursue either person or both people for the debt
• If one partner pays the debt, it satisfies the obligation for both
• Defaults can still be listed against both consumers even if one partner was primarily responsible for the missed payments

The per-individual rule explained

The credit reporting system treats each consumer as an individual, even when defaults stem from shared debts. This principle affects how disputes are handled.

Why separate disputes are required

Credit reporting bodies maintain separate files for each consumer. When a dispute is lodged, they review the specific circumstances relating to that individual consumer’s file.

Factors that may differ between partners include:

• The address listed when the default was recorded
• Whether proper notice was sent to each consumer
• The income and employment details recorded at the time
• Previous communication between the creditor and each consumer
• Whether each consumer received required notices under the Privacy Act

When outcomes may differ

Even though the underlying debt is the same, the dispute outcomes for each partner may differ based on:

Notice issues: If one partner moved address and didn’t receive the default notice, their dispute may succeed while the other partner’s may not.

Documentation problems: The creditor may have proper documentation for one consumer but missing paperwork for the other.

Communication records: The creditor’s records may show different levels of contact or communication with each partner.

Identity verification: There may be discrepancies in how each consumer’s identity was verified during the original application.

What to check before disputing joint defaults

Before starting the dispute process, review the circumstances that led to the joint default.

Document review checklist

• [ ] Original loan or credit agreement showing both signatures
• [ ] Default notice letters sent to each consumer
• [ ] Payment history and any evidence of payments made
• [ ] Address records at the time the default was listed
• [ ] Communication records between the creditor and each partner
• [ ] Evidence of financial hardship or circumstances leading to missed payments
• [ ] Any settlement agreements or payment arrangements
• [ ] Court documents if the matter proceeded to judgement

For more guidance on reviewing your credit file, see our guide on how to get a free credit report in Australia.

Common grounds for challenging joint defaults

Improper notice: Each consumer must receive proper notice before a default can be listed. If one partner moved address and the creditor failed to update records, the default listing may be invalid.

Incorrect information: Defaults must contain accurate information about the debt amount, dates and consumer details.

Procedural failures: Creditors must follow specific steps before listing defaults, including providing notice of intended default listing.

Duplicate listings: The same debt should not be listed multiple times or across different credit reporting bodies with inconsistent information.

Paid defaults showing as unpaid: If the debt was settled but the default status was not updated, this may be grounds for correction.

The dispute process for joint defaults

When challenging joint defaults, each partner goes through their own dispute process.

Step 1: Individual credit file review

Each partner should obtain their credit file from all three credit reporting bodies (Equifax, Experian and illion). The default information may differ slightly between bureaus or between partners.

Step 2: Gather supporting documentation

Collect all relevant documents for both consumers. Even though the disputes are separate, the underlying documentation may support both cases.

Step 3: Lodge separate disputes

Each consumer must lodge their own dispute with the relevant credit reporting body and/or credit provider. The disputes can be lodged simultaneously or at different times.

Step 4: Track responses separately

Credit providers have 30 days to respond to disputes. Each partner will receive their own response, which may differ in outcome or reasoning.

Step 5: Follow up individually

If the initial dispute is unsuccessful, each partner may need to pursue further action independently, such as lodging with an external review pathway.

When joint default disputes have different outcomes

It is possible for one partner’s dispute to succeed while the other’s fails, even when challenging the same underlying default.

Scenarios where outcomes may differ

Address discrepancies: One partner received proper notice while the other did not due to an address change.

Documentation issues: The creditor has complete records for one consumer but missing information for the other.

Identity verification problems: There may be issues with how one partner’s identity was verified during the original application.

Communication differences: The creditor may have records of attempting contact with one partner but not the other.

What happens when outcomes differ

If one partner’s dispute succeeds and the default is removed from their credit file, the other partner may still have the default showing. This can create complications when:

• Applying for joint credit in the future
• One partner has a clean credit file while the other still shows the default
• Lenders see inconsistent credit histories between joint applicants

In such cases, the partner with the remaining default may want to pursue further review, particularly if the successful dispute revealed procedural issues that may also apply to their case.

Practical implications for couples

Joint defaults can significantly impact a couple’s financial options, even when only one partner’s credit file is affected.

Impact on future joint applications

When couples apply for joint credit, lenders typically assess both credit files. A default on either file may result in:

• Higher interest rates
• Lower loan amounts
• Stricter lending criteria
• Application rejection

Some lenders focus on the stronger credit file when both applicants apply together, while others take a conservative approach and base decisions on the weaker file.

Single applicant strategies

Couples sometimes consider having the partner with the cleaner credit file apply alone for:

• Home loans
• Car loans
• Credit cards
• Personal loans

This approach has limitations:

• Lower borrowing capacity based on single income
• The property or asset is only in one name
• The partner with poor credit cannot build positive credit history
• Relationship property laws may still apply to assets purchased

Timing considerations

When disputing joint defaults, couples should consider:

• Whether to dispute simultaneously or stagger the timing
• The impact on pending finance applications
• Whether to wait for one dispute outcome before lodging the other
• The 30-day response timeframe for each dispute

For more information about joint defaults and how they’re treated separately, see our detailed guide on joint default credit files and why each consumer is treated separately.

Cost considerations for joint default disputes

Because each default must be challenged separately, couples face individual fees for each dispute.

Per-consumer pricing structure

Credit dispute services typically charge per consumer, per default. This means that if both partners have the same default, the total cost is double the single-person fee.

Factors affecting total costs:

• Number of defaults on each credit file
• Whether the defaults appear across multiple credit reporting bodies
• Any additional services required (such as ongoing monitoring)

Budget planning for couples

Couples should budget for separate dispute fees and consider:

• Whether to dispute all defaults simultaneously
• Prioritising defaults that are most damaging to credit files
• The potential cost savings of improved credit scores
• The value of faster access to competitive finance rates

How Default Gone helps

Default Gone helps Australians challenge unfair, incorrect or unlawfully listed defaults. We collect the relevant information, prepare the dispute, lodge it with the credit provider and/or credit reporting body, track the response and explain the outcome in plain English.

The standard Default Gone service is $399 per consumer, per default (limited launch pricing — normally $399). There are no stage fees, no success fees and no surprise invoices. The fee covers the work performed, not a sought outcome.

For couples with joint defaults, this means each partner’s dispute is handled separately with individual attention to their specific circumstances and credit file.

Next steps for couples with joint defaults

If you and your partner have the same default blocking your financial goals, don’t accept it without checking whether it was listed correctly.

Start by obtaining current credit files for both partners from all three credit reporting bodies. Compare the default information and identify any discrepancies or potential grounds for dispute.

Remember that each consumer’s credit file is their own, and each default must be challenged individually. A successful outcome for one partner provides valuable insight but doesn’t automatically resolve the other’s credit file.

If a joint default is holding up your finance application or rental approval, consider starting the dispute process for both partners. The per-individual rule means you may need separate disputes, but addressing the issue promptly can help restore your financial options.

Disclaimer

Default Gone is not a law firm and does not provide legal or financial advice. We do not undertaking that a default or judgement will be removed. Outcomes depend on the facts, documents and response from the credit provider, credit reporting body or relevant legal pathway.

Frequently asked questions

Q: If my partner’s default dispute succeeds, will mine automatically be fixed too?

A: No, each consumer’s credit file is treated separately. Even if you have the same default from a joint debt, your partner’s successful dispute doesn’t automatically correct your credit file. You’ll need to lodge your own separate dispute.

Q: Do we need to pay twice if we both have the same default?

A: Yes, credit dispute services typically charge per consumer, per default. Since the credit reporting system treats each person individually, each default requires separate work and incurs separate fees.

Q: Can we lodge both disputes at the same time?

A: Yes, you can lodge both disputes simultaneously. However, each dispute will be assessed independently based on the specific circumstances relating to each consumer’s credit file and the creditor’s records for each person.

Q: What if one dispute succeeds but the other fails?

A: This is possible because each dispute is assessed on its individual merits. Factors like address records, notice delivery, and documentation may differ between partners. The partner whose dispute failed may want to pursue further review or appeal.

Q: Should we use the same dispute service or different ones?

A: You can use the same service or different services. Using the same provider may offer consistency in approach and shared insights from the initial dispute. However, the disputes will still be processed separately regardless of which service you choose.

Q: How long does it take to resolve both disputes?

A: Each dispute has a 30-day response timeframe from the credit provider. Both disputes can run concurrently, so the total time shouldn’t be longer than disputing individually. However, outcomes may come back at different times.

Q: Can we apply for joint credit while the disputes are pending?

A: You can apply, but lenders will see the current defaults on your credit files during assessment. Some couples prefer to wait for dispute outcomes before applying for major credit like home loans, while others proceed based on their specific circumstances and urgency.

Q: What documents do we need for both disputes?

A: You’ll generally need the same underlying documents (loan agreements, payment records, correspondence) for both disputes. However, each dispute may also require consumer-specific documents like proof of address at the time of default or individual communication records.

Q: Will having the same default on both files make it easier to dispute?

A: Having the same default can provide consistency in the dispute approach and documentation. However, it doesn’t make the dispute easier from a procedural perspective since each file must still be assessed individually by the credit reporting system.

If you want a starting point, our free credit scan captures the basics in five minutes.