How to Get Late Payments Removed From Your Credit Report

A credit report is a record of your financial history, detailing how you have managed borrowed money. It serves as a financial resume, providing lenders, landlords, and even some employers with insight into your reliability. This information directly influences your credit score. Maintaining accuracy within your credit report is important because errors can diminish your credit standing, potentially hindering access to favorable lending terms, housing, or employment opportunities. Late payments, in particular, can have a substantial negative impact on your credit health, making their accurate representation and potential removal a focus for many individuals.

Understanding How Late Payments Appear on Your Credit Report

A late payment entry on a credit report signifies that a payment on an account was not received by its due date. Creditors typically report payments as late to the three major credit bureaus—Experian, Equifax, and TransUnion—once they are at least 30 days past due. The severity of the impact on a credit score can increase as payments become progressively later, such as 60, 90, or 120 days overdue.

Before attempting removal, gather specific information from your credit reports. You are entitled to a free credit report once every 12 months from each of the three major bureaus through AnnualCreditReport.com. Reviewing these reports allows you to identify discrepancies or accurately reported late payments. Identify the specific account numbers, the exact dates the late payments were reported, and the creditor associated with each entry. Collect personal records like bank statements, payment confirmations, or correspondence with the creditor, as these documents will be useful during the removal process.

Distinguishing between an inaccurate late payment and an accurate one is an important first step in determining the appropriate strategy. An inaccurate late payment might involve a payment that was made on time but reported late, an incorrect payment date, or an account that does not belong to you. Conversely, an accurate late payment is one where you genuinely missed the due date. This distinction guides whether you will pursue a formal dispute process or a goodwill request.

Disputing Inaccurate Late Payments

Addressing inaccurate late payments on your credit report involves a formal dispute process. The Fair Credit Reporting Act (FCRA) grants consumers the right to dispute information they believe is incomplete or inaccurate on their credit reports.

To initiate a dispute, gather all supporting evidence. This includes copies of your credit reports highlighting the inaccurate entry, bank statements or payment confirmations proving on-time payments, and any correspondence with the creditor regarding the payment.

You can file a dispute directly with each of the credit bureaus (Experian, Equifax, and TransUnion) that show the inaccurate information. Most bureaus offer online dispute portals or allow submission by certified mail with a return receipt requested. Your dispute letter should:

Clearly state your complete name and address.
Identify the specific account number.
Detail each mistake you want fixed and explain why it is inaccurate.
Include copies of supporting documents (not originals), a copy of your government-issued ID, and a recent utility bill to verify your identity.

Alternatively, you can dispute directly with the original creditor, the furnisher, who reported the information. The furnisher is required to investigate the dispute and correct the information if it’s found to be inaccurate. If you dispute directly with the credit bureau, they will forward your dispute to the furnisher for verification.

Upon receiving your dispute, credit bureaus are required by the FCRA to investigate the item within 30 days. During this time, the credit bureau contacts the data furnisher to verify the accuracy of the disputed item. If the furnisher cannot verify the information, or if it is found to be inaccurate, the item must be updated or removed from your credit report. The credit bureau must notify you of the results in writing within five business days of completing the investigation. If the dispute results in a change, you will receive a free updated copy of your credit report.

Asking for Goodwill Removal

For late payments that are accurate but represent an isolated incident or occurred due to mitigating circumstances, a “goodwill adjustment” or “goodwill removal” can be requested directly from the creditor. This is a discretionary request, as creditors are not legally obligated to grant it. Goodwill requests are most effective when you have a strong history of on-time payments with the creditor, and the late payment is truly an anomaly.

When preparing a goodwill letter or communication, maintain a polite and apologetic tone, taking responsibility for the late payment. The communication should include your full name, account number, and the specific date of the late payment you wish to have removed. Briefly explain the circumstances that led to the lateness, such as a medical emergency, a temporary financial hardship, or a simple oversight, without providing excessive detail or blaming others.

Clearly state your request for a goodwill removal of the late payment from your credit reports. Emphasize your commitment to future on-time payments and highlight your positive payment history, if applicable. Creditors are more likely to consider such requests from long-standing customers who generally maintain good standing.

You can submit a goodwill request through various channels, including mailing a formal letter, sending an online message through the creditor’s secure portal, or contacting their customer service department by phone. While a phone call might offer an immediate response, a written letter provides a documented record of your request and your reasoning. It is advisable to follow up if you do not receive a response within a few weeks. Remember that success is not guaranteed, as creditors have no obligation to remove accurately reported information. However, this approach can be a viable option for improving your credit report when a formal dispute is not applicable.

After Attempting Removal

After attempting removal, diligently monitor your credit reports. Regular monitoring allows you to verify if the requested changes have been implemented across all three major credit bureaus. You can access free weekly credit reports from each bureau through AnnualCreditReport.com to track these updates.

If the late payment is successfully removed, confirm its absence on reports from Experian, Equifax, and TransUnion. This verification ensures the negative mark no longer impacts your credit score. The removal of inaccurate or successfully adjusted items can positively influence your credit score and improve your financial standing.

If an accurate late payment remains after a denied goodwill request, understand its long-term implications. Accurate late payments typically remain on your credit report for up to seven years from the date of the original delinquency. While visible, their impact lessens over time as positive payment history accumulates. In such cases, the most effective strategy for credit improvement is to consistently make all future payments on time. Establishing a pattern of responsible financial behavior will gradually rebuild and strengthen your credit profile over the remaining time the late payment is reported.