Can Credit Bureaus Remove Late Payments?

Late payments on a credit report can significantly affect an individual’s financial standing. These negative marks are recorded by credit bureaus. A payment history holds considerable weight in credit scoring models, making even a single late payment capable of lowering a credit score. While these entries can remain on a credit report for up to seven years, their impact generally lessens over time.

Preparing to Dispute Inaccurate Late Payments

To remove an inaccurate late payment, gather documentation. Obtain a copy of your credit report from each of the three major credit bureaus: Equifax, Experian, and TransUnion. You are legally entitled to a free copy of your credit report from each bureau once every 12 months through AnnualCreditReport.com. Review each report to pinpoint the specific late payment entry you believe to be inaccurate.

Once the inaccurate entry is identified, collect supporting evidence that demonstrates the payment was made on time or that the late payment report is an error. This evidence can include bank statements, payment confirmations, canceled checks, or any written correspondence with the creditor. Clearly identify the creditor and the account number associated with the disputed entry on your credit report.

Submitting a Dispute for Inaccurate Late Payments

After assembling all necessary documentation, you can formally submit a dispute to the credit bureaus. The primary methods for submitting a dispute are online through the credit bureau’s website or by mail. For online submissions, navigate to the dispute center on the respective credit bureau’s website, locate the erroneous entry, and follow the prompts to submit your claim.

If submitting by mail, draft a clear and concise dispute letter including your personal identifying information, the account number, and a precise statement detailing why the late payment is inaccurate. Always send copies of your supporting documents, never the originals, and consider using certified mail with a return receipt to confirm delivery. Credit bureaus are generally required to investigate disputes within 30 days. You may also choose to dispute directly with the data furnisher, the creditor that reported the information.

Requesting a Goodwill Deletion for Accurate Late Payments

For late payments that are legitimately accurate but reported due to unusual circumstances, a “goodwill deletion” request to the creditor may be an option. This is a direct appeal to the creditor, not a formal dispute, and its success is entirely at their discretion. A goodwill letter should maintain a polite and respectful tone, acknowledging responsibility for the late payment.

In your letter, briefly explain the reason for the late payment, especially if it was an isolated incident or due to an unforeseen event like a medical emergency or temporary financial hardship. Emphasize your otherwise consistent history of timely payments with the creditor, demonstrating that the late payment does not reflect your typical payment behavior. Explicitly request the removal of the specific late payment entry as a gesture of goodwill. While there is no guarantee of success, sending the request via written letter is often preferred for documentation, and addressing it to customer service or a credit department can be a starting point.