Can You Get a Late Payment Taken Off Your Credit Report?
Navigating late payments on your credit report? Learn the methods to potentially get them removed and improve your credit history.
A late payment on a credit report can lower credit scores and reduce access to favorable lending terms. These entries typically remain for up to seven years from the original delinquency date, impacting future financial opportunities like mortgages or auto loans. Understanding how to address these marks is a practical step for consumers. This article explores the circumstances under which late payments might be removed and outlines the precise processes involved.
Understanding When Late Payments Can Be Removed
Late payments on a credit report can sometimes be addressed, depending on the circumstances. One situation involves reporting inaccuracies, where the information is factually incorrect. This includes payments reported late when they were made on time, incorrect payment amounts, or duplicate entries. Errors can also arise from identity theft or mixed files, where information belonging to another individual is mistakenly combined with one’s own report.
Another approach is a goodwill request, a discretionary appeal made directly to the creditor. This method is for isolated late payments due to extenuating circumstances, such as a medical emergency or temporary job loss. Creditors may consider these requests, particularly when the consumer has a long history of consistent, on-time payments.
A less common strategy is a negotiated removal, or “pay-for-delete” agreement. This involves proposing an arrangement where a creditor or collection agency removes a late payment mark in exchange for debt payment. Creditors are not obligated to agree, and the Fair Credit Reporting Act (FCRA) generally requires accurate reporting, making these agreements a legal gray area.
Process for Disputing Inaccuracies
Disputing an inaccurate late payment entry requires a structured approach. First, gather all evidence supporting the inaccuracy. This documentation can include bank statements, payment confirmations, canceled checks, or creditor correspondence. For identity theft, a police report or Federal Trade Commission (FTC) Identity Theft Report is essential.
Next, contact the creditor (data furnisher) directly. Draft a formal dispute letter stating the account number, the inaccurate late payment, and why it is incorrect. Send this letter via certified mail with a return receipt requested.
Simultaneously, file a dispute with Experian, Equifax, and TransUnion. This can be done online, by phone, or by mail. When submitting, include a copy of the credit report highlighting the error and all supporting documentation.
Credit reporting agencies are required by the FCRA to investigate within 30 days, or up to 45 days if additional information is provided. They forward the dispute to the data furnisher for verification. If the investigation confirms the information is inaccurate or cannot be verified, the item must be updated or removed.
Process for Requesting Goodwill or Negotiated Removal
A goodwill request for a late payment involves a direct appeal to the creditor, using a polite and professional tone. The letter should acknowledge responsibility while briefly explaining any extenuating circumstances that led to the isolated incident. Highlight a history of timely payments and commitment to maintaining a good payment record.
When preparing a goodwill letter, include the account number, the date of the late payment, and a clear request for its removal as a one-time courtesy. Direct the letter to the creditor’s customer service department or a specialized goodwill adjustment team. Sending the letter via certified mail provides a delivery record; some creditors accept requests through secure online message centers.
For a negotiated removal, or “pay-for-delete,” contact the creditor or collection agency to propose the arrangement. This approach is often for older or settled debts. Negotiate the terms of the removal, including the payment amount, and insist on a written agreement before making any payment.
The written agreement should explicitly state the negative entry will be removed from credit reports upon fulfillment of the payment terms. Retain copies of all communication, especially the written agreement, to ensure the terms are honored. Follow up after payment to confirm the negative mark has been removed from the credit report.