Can I Remove a Late Payment From a Credit Report?

A late payment on a credit report indicates a borrower missed a scheduled payment. Creditors report account activity to credit bureaus, and these entries can negatively influence a credit score, making it harder to secure future credit or favorable interest rates. While late payments significantly affect one’s credit profile, it is possible to address and, in some circumstances, remove them. This article outlines methods for addressing and potentially removing late payments from a credit report.

Understanding Late Payment Reporting and Your Credit Report

A payment is generally considered late for credit reporting purposes when it is 30 days or more past its due date. Creditors typically do not report payments that are only a few days or a couple of weeks overdue, though late fees may still apply. Once a payment reaches the 30-day delinquency mark, creditors may report it to the major credit bureaus, including Equifax, Experian, and TransUnion.

A late payment on a credit report includes the creditor’s name, account number, delinquency date, and amount past due. This information directly impacts credit scores, as payment history is a primary factor. The longer a payment is past due (e.g., 60, 90, or 120 days), the greater its negative effect. Late payments typically remain on a credit report for up to seven years from the original delinquency date.

To understand how late payments affect your credit, review your credit reports from all three major bureaus. You are entitled to a free credit report from each bureau once every 12 months through AnnualCreditReport.com. When reviewing your reports, carefully examine each account for any reported late payments.

Preparing to Challenge Late Payments

Before initiating action to remove a late payment, preparation is key. This involves identifying potential inaccuracies and understanding approaches for addressing both erroneous and accurate entries. Gathering relevant documentation and understanding underlying strategies are important.

Identifying an inaccurate late payment requires comparing your credit report with your financial records. Inaccuracies include incorrect dates, wrong amounts, or payments reported late despite being on time. To verify discrepancies, cross-reference your report with bank statements, payment confirmations, and creditor correspondence. If an inaccuracy is found, collect evidence like bank statements showing on-time payments or written communication confirming payment. Organize these documents as supporting evidence for challenges.

For accurate late payments resulting from extenuating circumstances, two primary approaches are goodwill letters and pay-for-delete agreements. A goodwill letter requests a creditor to remove an accurate late payment as a courtesy, especially with an otherwise positive payment history. The letter should acknowledge the late payment, briefly explain the reason without making excuses, demonstrate responsible payment history, and respectfully request removal. This approach relies on the creditor’s discretion.

A pay-for-delete agreement is a negotiation with a collection agency to pay a collection account in exchange for its removal from your credit report. It is important to secure this agreement in writing before making any payment, as oral agreements may not be honored.

Actions to Remove Late Payments

Once preparatory steps are complete, specific actions can address late payments on a credit report. These actions depend on whether the late payment is inaccurate or accurate.

To dispute an inaccurate late payment, file a dispute directly with the credit bureaus or the original creditor. For credit bureaus, disputes can be submitted online, by mail, or by phone to Equifax, Experian, and TransUnion. Attach all evidence supporting your claim of inaccuracy. Credit bureaus are typically required to investigate within 30 to 45 days. Alternatively, contact the original creditor directly with your supporting documentation. If the creditor agrees the information is incorrect, they must inform all credit bureaus they report to, leading to correction or removal.

For accurate late payments, executing a goodwill letter or a pay-for-delete agreement involves specific steps. When sending a goodwill letter, address it to the creditor’s customer service or credit reporting department. While email or phone calls are options, certified mail with a return receipt provides proof of delivery. Keep copies of all correspondence. There is no guarantee of success, but consistent follow-up may be beneficial if no response is received within a few weeks.

Implementing a pay-for-delete agreement requires contacting the collection agency to propose the arrangement. Obtain a written agreement explicitly stating the account will be deleted from your credit report upon payment. Without this written commitment, paying the debt may only mark it as “paid” without removing the negative entry. Once the written agreement is secured, make the agreed-upon payment. After 30 to 60 days, review your credit reports to confirm the entry’s removal. If it persists, follow up with the collection agency, referencing your written agreement.