How to Get Late Payments Removed From Credit Report

Credit reports serve as comprehensive records of an individual’s financial behavior, detailing their credit activity and current credit standing. These reports are compiled by credit reporting companies, also known as credit bureaus, from data submitted by various creditors like lenders and credit card companies. Lenders utilize this information to assess creditworthiness, determine interest rates for loans, and manage existing accounts.

Beyond lending, credit reports can influence decisions regarding insurance, housing rentals, utility services, and even employment, highlighting their broad significance in personal finance. A single late or missed payment can negatively affect credit reports and credit scores. While late fees may apply quickly, a payment typically needs to be 30 days or more past due before it is reported to credit bureaus. Once reported, a late payment can remain on a credit report for up to seven years from the original delinquency date, potentially impacting credit scores for an extended period.

Preparing for Removal Efforts

Before attempting to remove late payment entries, gather all necessary information and documentation. Obtain a free copy of your credit report from Experian, Equifax, and TransUnion. Federal law (FCRA) entitles consumers to a free report from each bureau once every 12 months via AnnualCreditReport.com.

Upon receiving the reports, carefully review each one for discrepancies or late payment entries. Identify specific accounts and delinquency dates. Information may vary between bureau reports, as creditors are not obligated to report to all three. For each identified late payment, collect relevant details like the account number, creditor’s name, and exact late payment dates.

Gather documentation supporting your case, especially if an entry is inaccurate. This might include bank statements, canceled checks, or payment confirmations proving on-time payments. If seeking goodwill removal for an accurate entry, compile records of consistent on-time payments or correspondence related to the late payment’s circumstance.

Disputing Inaccurate Information

If a late payment entry is inaccurate, formally dispute the information with the credit bureaus. Credit bureaus provide channels for consumers to initiate disputes, typically online, by mail, or by phone. Online disputes are often most efficient, allowing direct upload of supporting documents.

When submitting a dispute, clearly state the specific account and inaccurate late payment date. Provide a concise explanation of why you believe the entry is incorrect. Attach all relevant documentation, such as proof of on-time payments or correspondence from the creditor acknowledging an error.

Once a dispute is filed, the credit bureau generally investigates the claim within 30 to 45 days. During this investigation, the bureau contacts the creditor to verify accuracy. After the investigation, the credit bureau informs you of the outcome; if inaccurate or unverifiable, the late payment entry will be removed.

Requesting Removal of Accurate Entries

Even accurate late payments may be removed through direct communication with the original creditor. Consider sending a “goodwill letter” to the creditor. This letter acknowledges the late payment, explains extenuating circumstances, and highlights a history of responsible payment.

Maintain a polite tone, avoiding demands. Emphasize your relationship with the creditor and commitment to future on-time payments. Creditors are not obligated to remove accurate information but may do so as a goodwill gesture, especially for reliable customers.

Another strategy involves negotiating with the creditor. A “pay for delete” arrangement is less common for late payments, more typical for collection accounts. You might offer to pay a past-due amount or a portion of a charged-off debt in exchange for removal. Creditors are not always willing to agree to “pay for delete” for late payments; obtain any agreement in writing before payment.

Following Up on Your Credit Report

After initiating a dispute or removal request, monitor your credit reports for updates. Check if the disputed or requested late payment entry has been updated or removed.

If a dispute results in the late payment remaining, and you still believe it is inaccurate, resubmit with additional information. You also have the right to add a brief statement, typically up to 100 words, to your credit report explaining your side of the story.

For persistent issues or FCRA violations, escalate your complaint. This may involve filing a complaint with the Consumer Financial Protection Bureau (CFPB) or your state’s Attorney General’s office.