Can You Remove Late Payments From Credit Report?
Gain insight into managing and improving your credit profile by effectively addressing past payment history.
It is possible to address late payments on your credit report, which can significantly impact your financial standing. Understanding how these entries appear and the strategies available for managing them is an important step in maintaining a healthy credit profile.
Understanding Credit Report Late Payments
A late payment occurs when a required payment for a credit account is not made by its due date. While a payment missed by a few days might incur late fees, it typically does not appear on your credit report unless it is at least 30 days past due. Creditors generally report late payments in categories such as 30, 60, or 90+ days past due.
These negative marks can remain on your credit reports for up to seven years from the date of the original delinquency. The impact on your credit score can be substantial, particularly when the late payment is first reported. A longer delinquency, such as 90 days late, generally has a greater negative effect than a 30-day late payment. Payment history is a major factor in credit scoring models.
Strategies for Addressing Late Payments
Consumers have legitimate strategies to address late payments appearing on their credit reports. These approaches focus on either requesting removal of an accurate entry or disputing an inaccurate one.
One strategy involves sending a goodwill request to the creditor. This is a formal appeal asking the creditor to remove an accurate late payment entry from your credit report as a gesture of goodwill. This approach is often considered when a consumer has a strong payment history before and after the isolated late payment, or if extenuating circumstances led to the missed payment. The request acknowledges responsibility for the late payment but seeks leniency based on overall good financial behavior.
Another strategy is disputing inaccurate information. If a late payment entry on a credit report is believed to be incorrect, consumers can challenge its accuracy. This applies if the payment was made on time, the reported amount was wrong, or if the entry is a result of identity theft. Disputing involves formally challenging the information with the credit bureaus or the data furnisher that reported the entry.
Information Gathering and Preparation
Before addressing a late payment, gather all necessary information and documentation. This will support your case effectively.
Obtain free copies of your credit reports from Equifax, Experian, and TransUnion via AnnualCreditReport.com. Review all three, as information may vary.
Once you have your reports, identify the specific late payment entry. Note the creditor’s name, account number, delinquency date, and reported amount. This information is essential for communication with creditors or credit bureaus.
Gathering supporting documentation is necessary for both goodwill requests and disputes. For a goodwill request, collect evidence of consistent on-time payments before and after the late incident. Documentation of any extenuating circumstances, such as medical bills or layoff notices, can also strengthen your request.
For a dispute, compile evidence that refutes the accuracy of the late payment, such as bank statements showing timely payments, cancelled checks, or email confirmations. If the inaccuracy is due to identity theft, include police reports or identity theft reports.
When drafting your letter, include your account number, the date of the late payment, and a clear reason for your request or dispute. For disputes, specifically state why the information is inaccurate and request its removal or correction.
Initiating the Process
After compiling all necessary information and drafting your communication, the next step involves formally submitting your request or dispute. The method of submission depends on the strategy chosen.
For goodwill requests, send your letter directly to the creditor’s customer service or credit reporting department. Some creditors may offer online message portals. Send physical letters via certified mail with a return receipt requested to confirm delivery.
When filing a dispute, submit it directly with each credit bureau (Equifax, Experian, and TransUnion) or with the data furnisher. Credit bureaus offer online dispute portals, or you can mail a dispute letter. Your dispute letter should clearly identify the item being disputed and include copies of all supporting evidence. For mailed submissions, use certified mail with a return receipt requested.
Following submission, credit bureaus are required to investigate disputes within 30 days, or up to 45 days if additional information is provided. They must notify you of the investigation results within five business days of completion. The outcome could be removal of the entry, verification of its accuracy, or a request for further information.