Can You Get Late Payments Removed From Your Credit Report?

Late payments can impact an individual’s financial standing, making it more challenging to secure favorable lending terms for mortgages, auto loans, or other credit products. These negative marks on a credit report signal to lenders a potential risk in repayment. Consumers can pursue processes and strategies to attempt their removal under specific circumstances. Understanding these avenues is important for anyone seeking to improve their credit profile.

Understanding Late Payments on Your Credit Report

A late payment occurs when a payment is not made by its due date. Creditors do not report a payment as late to credit bureaus until it is at least 30 days past due. If a payment is made a few days or weeks late but before the 30-day mark, it will not appear on a credit report, though late fees may still apply. However, once a payment reaches 30, 60, 90, or even 120 days past due, the creditor may report this delinquency to the major credit bureaus: Equifax, Experian, and TransUnion.

These reported late payments can remain on a credit report for up to seven years from the date of the initial delinquency. The severity of the impact on a credit score often correlates with how late the payment was, with 90-day late payments causing more damage than 30-day late payments. It is important to distinguish between accurate and inaccurate late payment entries; an accurate entry reflects a genuine missed payment, while an inaccurate one may be due to an error by the creditor or credit bureau. Regularly obtaining and reviewing credit reports from each of the three major bureaus is a step to identify any such entries.

Gathering Information for Removal Attempts

Before initiating any removal process, collect specific information and documentation. For late payments believed to be inaccurate, gather evidence such as payment confirmations, bank statements showing the payment cleared, cancelled checks, or billing statements that contradict the reported delinquency. Also, collect any communication records with the creditor regarding the payment, along with proof of identity like a government-issued ID and a recent utility bill.

When addressing accurate late payments through a goodwill request, prepare details to support your case. This includes your account number, the specific date(s) of the late payment(s), and a clear history of otherwise timely payment behavior on that account. A brief, factual explanation for the single late payment, such as a temporary financial hardship or a medical emergency, can be beneficial. Obtain free copies of your credit reports from AnnualCreditReport.com to ensure a complete overview of all reported late payments from each of the three major credit bureaus.

Initiating a Removal Request

Once all necessary information has been assembled, initiate a request for removal. The approach depends on whether the late payment is inaccurate or accurate.

Disputing Inaccurate Late Payments

If a late payment entry is inaccurate, consumers have the right to dispute it with the credit bureaus and the original creditor. Online dispute portals provided by Equifax, Experian, and TransUnion offer a streamlined way to submit disputes. Alternatively, disputes can be submitted via mail by sending a detailed letter that includes your contact information, the specific error, and copies of all supporting documents. Send mail disputes via certified mail with a return receipt to confirm delivery.

When disputing directly with the original creditor, provide them with the same documentation that supports your claim of inaccuracy. Under the Fair Credit Reporting Act, credit bureaus and furnishers of information are required to investigate disputes within 30 days. If the information cannot be verified or is found to be inaccurate, it must be removed or corrected from your credit report.

Requesting Goodwill Removal

For late payments that are accurate but occurred due to unusual circumstances, a goodwill letter can be sent directly to the creditor. This letter politely requests that the creditor remove the negative mark. The letter maintains a professional and courteous tone, briefly explaining the circumstances that led to the late payment without making excuses, and highlighting a history of otherwise responsible payment behavior.

An effective goodwill letter includes your account number, the date of the late payment, and a request for its removal from your credit report. You can submit these letters by mail, and some creditors may also accept requests via email or through their online message portals. While creditors are not obligated to grant goodwill requests, a well-reasoned and polite appeal, especially from a long-standing customer with an otherwise good payment history, can be successful.

Other Considerations

A “pay for delete” strategy involves offering to pay a debt that has gone to collections, in exchange for the collection agency removing the negative entry from your credit report. This approach is not endorsed by credit bureaus and exists in a legal gray area, as the Fair Credit Reporting Act requires accurate reporting. If considering this, obtain a written agreement from the collection agency explicitly stating they will delete the entry upon payment before any funds are transferred, as there is no guarantee they will follow through otherwise.

Following Up on Removal Efforts

After submitting a dispute for an inaccurate late payment, monitor the progress of the investigation. Credit bureaus respond with the results within 30 days. If a dispute is denied, consumers have the option to appeal the decision by providing additional evidence or a more detailed explanation. You can also add a brief statement of dispute, up to 100-200 words, to your credit report to explain your position regarding the disputed item.

For goodwill requests, if there is no response within a few weeks or if the request is initially denied, make a polite follow-up letter or call. Reiterate your positive payment history and the specific circumstances you previously outlined. Regardless of the method used, regularly rechecking your credit reports from all three bureaus confirms that the late payment has been removed or corrected. This ongoing vigilance ensures the accuracy of your credit file and reflects any positive changes.