How Can I Remove a Late Payment From My Credit Report?

A late payment entry on your credit report can lower your credit score and affect your ability to secure favorable loan terms. These marks indicate a payment was not made by its due date, often by at least 30 days. This article guides you through strategies for removing late payments, whether inaccurately reported or legitimate.

Understanding Your Credit Report and Late Payment Entries

Accessing your credit report is the first step to identify late payment entries. You are entitled to a free copy of your credit report once every 12 months from each of the three major nationwide credit reporting companies: Equifax, Experian, and TransUnion. The official, government-authorized website for obtaining these reports is AnnualCreditReport.com. You can also request them by phone or mail.

Review your credit reports to locate any reported late payments. These entries typically list the creditor’s name, the account number, the date of delinquency, and how many days past due the payment was (e.g., 30, 60, 90, or 120+ days). It is important to compare the information across all three reports, as discrepancies can sometimes exist. Comparing this information helps determine accuracy and prepare for action.

Steps to Dispute Inaccurate Late Payments

You can dispute inaccurate late payment entries on your credit report. An inaccurate late payment could mean you paid on time but it was reported late, the amount is incorrect, the account is not yours, or it’s a duplicate entry. Gather evidence to support your claim before disputing. This evidence might include cancelled checks, bank statements, payment confirmations, or correspondence with the creditor proving timely payment or other inaccuracies.

To initiate a dispute, you can contact the major credit bureaus (Experian, Equifax, and TransUnion) online, by mail, or by phone. When mailing a dispute letter, use certified mail with a return receipt to document receipt. Your dispute letter should clearly identify the item you are disputing, state the facts, explain why you believe the information is inaccurate, and request its removal or correction. You should include copies, not originals, of your supporting documents.

You can also dispute directly with the creditor (data furnisher). Creditors are generally required to investigate direct disputes within 30 days of receiving your notice. The credit bureaus typically have 30 days to investigate your dispute, though this can extend to 45 days if you provide additional documentation after the investigation begins. If the investigation finds the information inaccurate, it must be corrected or removed from your credit report.

Approaches for Removing Accurate Late Payments

Even accurate late payments may be removed from your credit report. One strategy is sending a “goodwill letter” to the creditor. A goodwill letter politely requests the creditor remove a negative mark, especially for a one-time mistake or unusual circumstances, if your payment history is otherwise strong.

When writing a goodwill letter, include your account details, a brief and honest explanation for the late payment, and demonstrate your subsequent good payment behavior. You can send this letter by mail or through the creditor’s secure message center if available. While creditors are not obligated to grant these requests, they may consider it, particularly for isolated incidents. Success is not guaranteed.

Another approach for outstanding debts is a “pay-for-delete” agreement. This involves negotiating with a creditor or collection agency to have a negative entry removed in exchange for paying the debt, either in full or a negotiated settlement amount. It is critical to obtain this agreement in writing from the creditor before making any payment. The written agreement should explicitly state that the negative entry will be removed from your credit report upon payment. Without a written agreement, there is no guarantee the creditor will uphold their end of the bargain, even after payment.