How to Ask a Creditor to Remove Late Payments

A late payment on a credit account occurs when a required minimum payment is not made by its due date and is reported to nationwide credit bureaus (Experian, Equifax, and TransUnion) once it is 30 days or more past due. This reported delinquency significantly affects an individual’s credit score, as payment history is a primary factor in credit scoring models, sometimes accounting for as much as 35% of a FICO Score.

A single late payment can cause a drop in credit scores, and these negative marks can remain on credit reports for up to seven years from the original delinquency date. Their presence can make it harder to qualify for new credit or secure favorable interest rates. While creditors are obligated to report accurate information, specific approaches can be taken to ask for the removal of a legitimate late payment under certain circumstances.

Gathering Information for Your Request

Before contacting a creditor, gather specific information related to the late payment and your account history. The process begins with obtaining copies of your credit reports to identify the exact late payment you wish to address.

You can acquire a free copy of your credit report from each of the three major nationwide consumer credit reporting companies once every 12 months by visiting AnnualCreditReport.com. Carefully review these reports to pinpoint the specific late payment, noting the date it was reported, the amount that was overdue, and the creditor involved.

After identifying the specific late payment, review your overall payment history with that particular creditor. Creditors are often more receptive to requests for removal if you have a strong record of on-time payments, with the late payment being an isolated incident.

Recall and document the legitimate reason that led to the late payment. This could include unforeseen circumstances such as a medical emergency, a temporary financial hardship like a job loss, or a technical issue like a payment processing error. Providing a concise and factual explanation, rather than an emotional appeal, helps the creditor understand the context of the situation.

Consider offering the creditor something to demonstrate your commitment to responsible financial behavior. This could involve setting up automatic payments for future bills or making a significant payment to bring the account current. Such offers indicate good faith and a proactive approach to managing your finances, which can positively influence the creditor’s decision.

Finally, locate the correct contact information for the creditor, such as their customer service department or a specific credit reporting department, to ensure your request reaches the appropriate party.

Submitting Your Removal Request

With all necessary information gathered, communicate your request to the creditor. You have two primary methods: writing a goodwill letter or making a phone call. A written letter provides a formal record, while a phone call may offer a more immediate response.

When crafting a goodwill letter, ensure it is professional, clear, and concise. Begin with a polite salutation and clearly identify your account using your full name, address, and account number. State your request for the late payment removal courteously, explaining that you noticed the late payment reported on a specific date for your account.

Briefly present the legitimate reason for the late payment, as documented during your information gathering, without dwelling on excessive detail. Explain how the situation was an exception to your usual payment habits and what steps you have taken to prevent future occurrences, such as setting up automatic payments. Conclude by reiterating your request for the late payment to be removed from your credit reports, and thank them for their consideration.

It is advisable to send goodwill letters via certified mail with a return receipt requested; this provides proof that the creditor received your communication.

If you choose to make a phone call, have all your gathered information readily available. Maintain a calm, polite, and professional demeanor throughout the conversation. Clearly state the purpose of your call, explaining the reason for the late payment and respectfully requesting its removal.

If the initial representative cannot assist, politely ask to speak with a supervisor or someone in a specific credit reporting department. During the call, take detailed notes, including the date and time, the name of the representative, a summary of what was discussed, and any agreements made. This documentation is valuable for future reference.

Verifying Credit Report Updates

After submitting your request, a waiting period is necessary for the creditor to process your inquiry and for credit bureaus to update their records. Changes can take 30 to 60 days to reflect on your credit reports. Creditors report information to the bureaus on their own schedules, usually monthly, so the exact timing of an update can vary.

During this waiting period, regularly monitor your credit reports from all three major bureaus. You can continue to access your free annual credit reports through AnnualCreditReport.com, or utilize credit monitoring services. Check each report to see if the late payment has been removed.

Remember that not all creditors report to all three bureaus, so an update on one report does not automatically mean it has been removed from the others.

If the creditor agrees to your request and the late payment is removed, confirm its absence across all three credit reports. This verifies that the negative mark has been successfully erased from your credit history.

However, if the late payment remains on your reports or the creditor refuses your request, it is difficult to remove an accurate late payment. While you cannot force a creditor to remove an accurate reporting, your initial request and any documentation collected serve as a record of your efforts to resolve the matter.