How to Remove a 30-Day Late Payment From Credit Report

A 30-day late payment on a credit report can impact an individual’s financial standing and credit score. Credit reports record a person’s credit history, influencing access to loans, credit cards, housing, and employment opportunities. While a late payment can be concerning, methods exist to address and potentially remove such entries, improving one’s credit profile.

Understanding Your Credit Report

Accessing your credit report is the first step in identifying any late payment entries. Consumers are entitled by federal law to a free copy of their credit report every 12 months from each of the three major nationwide credit bureaus: Experian, Equifax, and TransUnion. These reports can be obtained through AnnualCreditReport.com, the authorized website. Some credit bureaus also offer free weekly access to online credit reports.

Once obtained, carefully review each report. A 30-day late payment entry appears in the payment history section for a specific account, indicating the date the payment was due and received. This information also includes the creditor’s name and account number. These details are important for any action to dispute or address the late payment.

Identifying Potentially Inaccurate Late Payments

Reviewing a credit report involves cross-referencing entries with personal financial records to determine accuracy. A late payment might be inaccurate for several reasons, such as a misreported on-time payment, an incorrect date, or payment applied to the wrong account. Identity theft or duplicate entries are also potential causes for inaccuracies.

To verify the accuracy of a late payment entry, gather personal records. This documentation can include bank statements, payment confirmations, canceled checks, or email receipts that show the payment was submitted on or before the due date. Compare the payment date, amount, and account number on your records with the details listed on your credit report. If discrepancies are found, these documents will serve as evidence in a dispute.

Disputing Inaccurate Information

When an inaccurate 30-day late payment is identified, the next step involves disputing the information with the credit bureaus and, if necessary, the original creditor. Disputes can be initiated online, by mail, or over the phone with each of the three major credit bureaus. It is important to dispute the error with every credit bureau that lists the inaccurate information, as they do not communicate with each other regarding disputes.

When submitting a dispute, provide details about what information is incorrect and why, including the creditor name and account number. Copies of supporting documentation, such as bank statements or payment confirmations, should be included, but retain original documents.

Credit bureaus are required by the Fair Credit Reporting Act (FCRA) to investigate a dispute within 30 days. During this investigation, the credit bureau will contact the creditor to verify the disputed information. If the investigation concludes that the information is inaccurate or cannot be verified, the item must be removed or corrected. If the dispute is unsuccessful and you still believe the information is incorrect, further action can be taken, such as filing a complaint with the Consumer Financial Protection Bureau (CFPB).

Requesting a Goodwill Adjustment

For late payments that are accurate but resulted from extenuating circumstances, a “goodwill adjustment” can be requested directly from the creditor. This strategy is considered when an individual has a strong payment history and the late payment was an isolated incident. Examples of extenuating circumstances include a medical emergency, job loss, or a natural disaster.

A goodwill letter should be professional in tone, express remorse for the late payment, and explain the reason for the missed payment without making excuses. It should highlight a history of timely payments and request the removal of the late payment entry. While creditors are not obligated to grant such requests, they may be more receptive if the account has been in good standing for a long time and the late payment was a one-time occurrence. Address the letter to the creditor’s customer service department or a specific contact person if available, and be prepared to follow up.