How to Get a Late Payment Removed From Your Credit Report

Late payments on a credit report can impact financial standing. These negative entries signal a potential risk to lenders, often leading to lower credit scores. A reduced credit score can affect access to new credit, loan interest rates, and housing or employment opportunities. This article outlines methods to address or remove such information.

Checking Your Credit Reports

First, review your credit reports. You are entitled by federal law to a free copy of your credit report every 12 months from each of the three major nationwide credit bureaus: Equifax, Experian, and TransUnion. The official website authorized to provide these reports is AnnualCreditReport.com. It is advisable to obtain reports from all three bureaus, as information may vary between them.

Examine all listed accounts for late payment notations. Identify the specific account number, the creditor’s name, the exact date of the reported delinquency, and the amount that was past due. Pay close attention to the payment history section for each account, noting any instances marked as 30, 60, or 90 days late.

Compare information across reports and with your payment records (e.g., bank statements, payment confirmations). This comparison helps identify any discrepancies, errors, or inaccuracies in the reported data. For instance, you might find a payment reported late that was actually made on time, or an incorrect delinquency date.

Disputing Inaccurate Late Payments

If your review uncovers an inaccurate late payment, you can dispute it. An inaccurate late payment can include a payment reported late despite being made on time, an incorrect date of delinquency, an erroneous amount, or an account that does not belong to you. Gather supporting documentation, such as bank statements or payment confirmations, to verify on-time payments.

Contact credit bureaus directly to dispute inaccuracies. This can often be done through their online dispute portals, or by sending a dispute letter via certified mail with a return receipt requested. Clearly state the inaccurate item, explain why it is incorrect, and include copies of your supporting documentation. You can also dispute directly with the creditor that furnished the information.

Under the Fair Credit Reporting Act, credit bureaus are generally required to investigate disputes within 30 to 45 days. They notify the information furnisher (e.g., your creditor), who must verify the information. Upon completion of the investigation, the credit bureau will send you the results, and if the information is found to be inaccurate or unverifiable, it should be removed or corrected on your report.

Requesting Goodwill for Accurate Late Payments

For accurate but isolated late payments, a “goodwill letter” is a less formal approach. This letter is a direct request to the creditor to remove a legitimate negative mark from your credit report as a gesture of goodwill. This strategy is often most effective for accounts with an otherwise strong payment history, a long-standing customer relationship, or a compelling reason for the single late payment.

When composing a goodwill letter, include your account number, the specific date of the late payment, and a brief, polite explanation for the missed payment. Highlight your overall positive payment history to demonstrate reliability. Clearly state your request for the removal of the late payment entry.

Maintain a professional and respectful tone throughout the letter, as success is not guaranteed and creditors are not legally obligated to remove accurate information. Send the letter to the creditor’s customer service department. While this method does not guarantee a change, it presents a direct appeal for consideration.

Alternative Strategies for Late Payments

Other strategies exist for addressing late payments, with distinct considerations. One approach is negotiating directly with the creditor, sometimes called “pay for delete.” This is an attempt to have a negative entry removed in exchange for paying an outstanding debt, often a collection account.

However, this practice is not universally accepted by creditors and debt collectors and is not formally endorsed by credit bureaus. Success rates for “pay for delete” are low, and it may not remove the original creditor’s late payment mark, only the collection agency’s entry. Any such agreement should be obtained in writing before making a payment.

Non-profit credit counseling agencies offer assistance with debt management and budgeting. While they provide guidance on improving financial health, their primary role is not to directly remove accurate late entries from credit reports. They focus on helping consumers develop repayment plans and manage their finances more effectively.

Understand the natural aging process of credit report entries. Most negative information, including late payments, typically remains on a credit report for up to seven years from the date of original delinquency. After this period, entries are generally removed automatically. For some late payments, particularly older ones, waiting for the entry to age off the report may be the most practical option.