How to Get Late Payments Removed From a Credit Report

Late payments appearing on a credit report can significantly impact an individual’s financial standing. A late payment occurs when a required payment for a credit account, such as a loan or credit card, is not made by its due date. When a payment becomes sufficiently overdue, typically by 30 days or more, creditors may report this delinquency to the major credit bureaus. This reporting then creates a negative mark on the credit report, which can lead to a reduction in credit scores. This mark signals increased risk to lenders, making it harder to obtain new credit or favorable interest rates.

Understanding Late Payment Reporting

Creditors generally begin reporting a payment as late to the major credit bureaus—Experian, TransUnion, and Equifax—once it is at least 30 days past the due date. Once reported, a late payment can remain on a credit report for up to seven years from the date of the original delinquency. This duration is mandated by the Fair Credit Reporting Act (FCRA). While the negative impact of a late payment is most significant when it first appears, its influence on credit scores tends to decrease over time, especially if a consistent history of on-time payments follows.

Strategies for Removing Inaccurate Late Payments

Identifying an inaccurate late payment on your credit report is the first step toward its removal. You should regularly review your credit reports from all three major bureaus to spot any discrepancies, such as payments reported as late that were, in fact, made on time, or accounts that do not belong to you. Gathering supporting documentation is essential, such as bank statements, canceled checks, or payment confirmations. If due to identity theft, an official identity theft report from the Federal Trade Commission (FTC) is important evidence.

Once you have identified the inaccuracy and gathered your evidence, you can formally dispute the item with the credit bureaus. Disputes can typically be initiated online through the credit bureau’s website, by mail, or by phone. When submitting a dispute by mail, send it via certified mail. Your dispute letter should clearly state your contact information, the account number in question, the specific late payment you are disputing, and a concise explanation of why it is inaccurate. Attaching copies of all supporting documents is also necessary, but always retain your original records.

In addition to disputing with the credit bureaus, you can also contact the original creditor, often referred to as the data furnisher, directly. The FCRA requires furnishers to investigate disputes and correct or delete information found to be inaccurate or unverifiable. Credit bureaus typically have 30 days to investigate a dispute. If the investigation confirms the information is inaccurate, the credit bureau must correct or remove it from your report, and the furnisher must also notify all credit bureaus to which they reported the incorrect information.

Strategies for Removing Accurate Late Payments

Removing an accurate late payment from your credit report presents a greater challenge, as creditors are generally required to report factual information. However, a “goodwill letter” can be an effective strategy in certain circumstances. A goodwill letter is a polite written request to a creditor asking them to remove a late payment from your credit report as an act of courtesy or understanding, even though the information reported is correct.

This approach is most appropriate for isolated incidents, especially if you have an otherwise strong payment history with the creditor. It is particularly compelling if the late payment was caused by extenuating circumstances, such as a medical emergency, job loss, or a natural disaster. A goodwill letter should be courteous and professional, briefly explaining the reason for the late payment, accepting responsibility, and demonstrating your commitment to timely payments in the future. It helps to emphasize any improvements in your financial situation since the incident.

To send a goodwill letter, identify the appropriate contact person or department at the original creditor. While some creditors have online portals, sending a physical letter, ideally via certified mail, can ensure receipt. It is important to remember that sending a goodwill letter is a request for a favor, and creditors are not obligated to grant it. There is no guarantee of removal, but for consumers with a history of good credit management and a compelling reason, it can be a worthwhile attempt to improve their credit profile.

Monitoring After Removal Attempts

After initiating a dispute for an inaccurate late payment or sending a goodwill letter for an accurate one, consistent monitoring of your credit reports is essential. You should regularly obtain and review your credit reports from Experian, TransUnion, and Equifax to verify whether the late payment has been removed or updated. This vigilance ensures that any successful removal is reflected across all your reports. Federal law allows consumers to receive a free credit report from each of the nationwide credit reporting agencies once every 12 months.

If the late payment remains on your report after the investigation period, you have further steps. You may follow up with the credit bureau or the original creditor to inquire about the status of your request. If new information or evidence becomes available, you can resubmit a dispute with this additional documentation. Maintaining good payment habits on all your accounts going forward is also crucial, as a consistent history of on-time payments will naturally improve your credit standing over time, regardless of past isolated incidents.